Solution 1: a) As total number of customers are 3500 in the area, so the ISP will need 3500 hundred IP addresses for assigning unique IP address to the customers. But IP addresses can only be purchased in a range according to multiple of 2 i.e., number of IP addresses should be according to 2n. So, Minimum number of static addresses required by the ISP = 2n (for minimum ‘n’ such that 2n >=3500) = 212 = 4096 So, minimum number of static IP addresses purchased by the ISP = 4096 b) Number of remaining IP address = 4096 – 3500 = 596 A total of 596 IP addresses are available to be used in the extended area for providing services. So, maximum number of users in the extended area are 596 that can be provided service using the same static IP addresses. Solution 2: a) As active number of users are much lesser, so we don’t need to assign static IP address to each customer. Dynamic address allocation technique can be used with a relatively small number of available addresses to be assigned to active users only. As the hosts join and leave, the DHCP (Dynamic Host Configuration Protocol) server allocates an arbitrary address from its current pool of available addresses. Each time a host leaves, its address is returned to the pool. DHCP is ideally suited to these situations, as there are many users coming and going, and addresses are needed for only a limited amount of time b) As total number of active customers are no more than 950 at a time. The ISP does not need 4,096 IP addresses. Only a block of 1024 IP addresses are sufficient along with the DHCP protocol to provide seamless services to its customers. Minimum number of IP addresses required by the ISP = 2n (for minimum ‘n’ such that 2n >=950) = 210 = 1024 > 950 So, many minimum number of IP addresses purchased by the ISP = 1024