One of the most common confusion while deciding on Wifi Network setup is to underestimate the capacity. Typically Wireless routers are rated as 54 Mbps (802.11g ones), 150 Mbps, 1300 Mbps (both 802.11n), 1300 Mbps, 1900 Mbps, 2300 Mbps, 3200 Mbps (all 802.11 ac) and so on ...
So is a 150 Mbps WiFi network faster than 100 Mbps (ethernet network) or 1300 Mbps 802.11ac Wifi faster than a Gigabit Ethernet network ?
The answer is practically a NO in most cases. And people assume it to be a yes, buy their routers based on this incorrect assumption, only to find later at times when they are transferring a lot of data in the LAN that their network is perhaps not as fast as wired Ethernet network.
The first difference is that when you a buy an 8-port gigabit Ethernet switch it has a switch fabric inside and each Ethernet port can theoretically switch 1 Gbps. So a theoretical max of 8 Gbps is the overall switching capacity (each port can send/receive 1 Gbps simultaneously. In contrast when you buy a 1300 Mbps switch, the maximum theoretical router capacity is 1300 mbps (i.e. sum of bandwidth of all clients put together). I guess the answer to the above question is clear right at this stage. This confusion for buyers is caused more by the marketing label.
The second difference is caused by interference. Wired network suffer less from interference if the cables are properly shielded from other cables and power lines which means each circuit can practically work very close to 1 Gbps or 100 Gbps limit of the switch (as long as both ends support similar speed and cable quality (rated speed) matches the network speed. This means a wired network will be more stabler and reliable in throughput. In contrast, the Wireless network suffers from interference from other devices like microwave and neighbouring networks (in an dense urban apartment or layout). It is also heavily effected by the attenuation offered by household items, brick walls, etc.
Here's how my current Home wifi environment (in an apartment complex) looks like:
Above is the 2.4 Ghz band which looks extremely congested (the J602-XXX is my home Wifi network with the private and guest network). In contrast here is 5 Ghz band (my network is the only one around on the 5 Ghz band):

Of course the 5 Ghz band suffers from weaker range and need for client to support 5 Ghz (a rarity in older but still not entirely obsolete devices). More on this trade-off later. And also notice the signal strength I am getting (-45 dbm) right to the router. In my room, for which the wireless signal has to cross ONE bedroom (2 solid but thin brick walls), this falls to -55 dbm (4 out of 5 bars or close to acceptable level).
Let the signal cross two rooms (or walls) the result is quite pathetic.
The 2.4 Ghz network signal strength falls below -70 dbm while the 5 Ghz strength falls below -80dbm. If I had a bigger flat with one more additional room probably the 5Ghz signal would have been completely lost in the next room.
The above figures (all captured with WiFi Analyzer App on android) also show that 2.4 Ghz signal strength is consistently better than the 5 Ghz ones and therefore has more usable range.
Refer the table below to judge how serious the signal strength attenuation is:
| Signal Strength |
Qualitative Assessment |
Required for |
| -30 dBm |
Max achievable signal strength. The client can only be a few feet
from the AP to achieve this. Not typical or desirable in the real world. |
N/A |
| -67 dBm |
Minimum signal strength for applications that require very reliable, timely packet delivery. |
VoIP/VoWiFi, streaming video |
| -70 dBm |
Minimum signal strength for reliable packet delivery. |
Email, web |
| -80 dBm |
Minimum signal strength for basic connectivity. Packet delivery may be unreliable. |
N/A |
| -90 dBm |
Approaching or drowning in the noise floor. Any functionality is highly unlikely. |
N/A |
Data Courtesy: https://support.metageek.net/hc/en-us/articles/201955754-Acceptable-Wi-Fi-Signal-Strengths.
And BTW, my router is a 200USD+ Asus RT-AC68U with 3 antennas, beam-forming support, etc. Its no slouch and one of the best around.
So if your client is very far from router and signal has to cross many walls from client to router, expect big trouble. Ofcourse you can reduce this to some extent by using a Wifi repeater at less than half the rated bandwidth of one client or trying to relocate the router at central position in house where all client see a better signal (if at all this is feasible).
And don't think you can get a better signal by increasing the Transmission Power (Tx) of Router. Wifi communication is bi-directional. You can make yourself heard in every corner of a non-empty large hall/lecture-room by increasing you are speaking volume (shouting, screaming, etc), but that's no guarantee that you can hear everyone. Every also has to increase their volume to make themselves heard to you. And Mobile devices usually transmit at lower power to conserve battery, making them unusable at slightly longer distance from router.
To summarize,
(A) Speed, throughput & range of wireless networks will drop even with small distance from router which is not the case with a Wired LAN switch
(B) Wireless LANs suffer from interference from neighbouring networks and other cordless or microwave devices typically encountered in homes which is not the case with wired LAN
(C) Wireless signals get attenuated strongly by brick and mortar walls which is not the case
(D) A Gigabit Ethernet router/switch has all ports that can work on 1 Gbps duplex, but a xxx Mbps router (access point) does not guarantee that each client can work at that speed (its just the sum of all speeds is theoretically limited by this number)
(E) The future of wireless is 5 Ghz which will suffer less from interference, but will offer even more decreased range than 2.4 Ghz wireless.
So that's it. Today's (2014 end) wireless network can offer performance and throughput nowhere near the wired networks. This is a practical fact. You should try to put static immovable devices like desktop computer, NAS, IP camera, Television STB on wired networks for maximum performance, throughput & reliability while movable devices like tablets, smartphones and laptops etc can use your Wifi network. And for devices which do need to transfer much data (like network enabled consumer home appliances like refrigerator, Washing machine, etc) the choice does not matter (and probably Wifi is better because it frees the appliance from the problem of being near a Wired LAN port and messy cabling).
Their are of course many normal users who do not have large number of Wifi Clients or high data transfer requirements within LAN, and comparatively slower broadband connection (<20 Mbps) and they should be fine with having a Wifi Network only. Then also their may be a limitation to the range of Wifi.