Autonegotiation (formerly NWay) is an ethernet procedure by which two connected devices choose common transmission parameters, such as speed and duplex mode. In this process, the connected devices first share their capabilities as for these parameters and then choose the fastest transmission mode they both support.
Along with an overview of the architecture and working of the Auto Negotiation arbitration protocol, typical scenarios as well as certain precautions to be taken are discussed in this paper.
http://en.oboulo.com/auto-negotiation-in-ieee-802-3-based-layer-2-devices-65016.html
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