Does anyone know if you can connect the the Network Extender to the modem via a USB wifi adapter or does it have to be hardwired?
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Verizon Network Extenders are not compatible with USB WiFi adapters or cellular modems. You must connect them to your home router or modem via a normal Ethernet cable.
See the Network Extender FAQ for more info:
#1 under Network Extender Setup should have more info.
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