There are two basic configurations used for establishing communication channel or communication line. These are:-
(i). Point-to-Point Link
(ii). Multi-Point Link
(i). Point-to-Point Link
This point-to-point link basically relies upon the two functions i.e. transmit and receive. It is very simple channel configuration in which the computers or devices or other electronic circuits are to be connected using the dedicated communication lines. Dedicated communication line means that the connection is established using direct lines which connect the devices to other devices. Usually these communication channels are under-utilized because the terminal or the device which uses this channel may not be active, which is required to keep the line busy. It is costlier link because for every connection we need to
have a separate cable.
These lines will be relatively faster as the traffic would be very less. The cost of this communication channel is high and is normally under utilized so this communication channel is not popular.
(ii). Multi-Point Link
Multi-Point means one-to-many. This channel is more beneficial than Point-to-Point channel. This configuration of communication channel has evolved to remove the short coming of Point-to-Point channels of underutilization and cost. In this channel configuration we connect two or more computers or devices using a single line. This provides the optimum utilization of the communication channel. As any if the devices or some or all of the devices connected to line will be active enough to keep the line busy as well as there can be communication between the devices. Multi-Point channel link is more efficient on the utilization and cost fronts (point of view) as it is utilized to the optimum level. The cost occurred in this channel is less as compared to Point-to-Point Link. Due to its less cost and more benefit this communication channel is widely used and adopted.