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Data Terminal Equipment (DTE)

A Data Terminal Equipment (DTE) is a communication device that is the source or destination of signals on a network, typically a terminal or a computer. It communicaties with the data circuit-terminating equipment and can perform all the required functions necessary to permit users to communicate.

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Data circuit-terminating equipment (DCE) is a device that connects to the leased line provided by the telco. The term circuit-terminating refers to the fact that a leased line is sometimes called a data circuit, or simply a circuit, and the CSU/DSU sits at the end of the circuit. The DCE also provides clocking to the data terminal equipment (DTE). The DTE is a device that needs to send data over a circuit. Routers act as DTEs because they need to send IP packets, encapsulated in data link frames, over WAN links.

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