Networking – Advice on where to locate router/modem in a new home network

Bottleneck is not a problem

Obviously having two switches creates a bottleneck. However in order to saturate that one link connecting two switches, you need to have 2 data streams at more than 50% of gigabit speed. This rarely happens in home networks.

Shopping recommendation for a switch is off-topic here, but I can give a generic advise: Just buy 2 brand-name gigabit dumb (unmanaged) consumer switches, 12 or 16-port. If and when you'll run into throughput issues (say 5 years from now), you can always get switches with 10Gb uplink module, and connect the switches using that link. These switches are very expensive today, but you surely don't need them now, and who knows what technology will be available in 5 years?

Another idea

Another option would be to pull two cables from attic to basement in parallel, and install two 8-port switches in the attic. This way, even if you get two power users upstairs, you just connect them to separate switches. You effectively double your throughput here. Note that consumer-grade switches rarely have more than 3gbps switching speed, so having two switches in the attic and one in the basement is not much different in terms of maximum speed than having one switch in the basement.

Taking your questions in order:

1. Yes. Clients on the switch further from the router will see their traffic go through two switches before it reaches the router, but assuming at least decent equipment this will not noticeably impair performance.

2. No. Switches, unlike hubs, route traffic between ports such that only the device for which a given packet is destined sees it at all. Again, assuming at least decent equipment, you will not see significant collision issues.

3. Yes, if you intend to get gigabit-scale performance out of your network. However, using a 10/100 switch will not impair performance save for those clients actually connected to that switch.

4. I am not very familiar with the "layer" terminology you use; however, it appears a "Layer 1 switch" is simply a hub. Assuming that's the case, a "Layer 2 switch" (i.e., a switch proper) will certainly do a better job of traffic management, in that they do traffic management at all rather than simply broadcasting every incoming packet to every one of their downstream ports. It may be possible to find a gigabit Ethernet hub, as opposed to a switch, but why would you want to?