A router is a networking device whose software and hardware are usually tailored to the tasks of routing and forwarding information. For example, on the Internet, information is directed to various paths by routers.
Routers connect two or more logical subnets, which do not necessarily map one-to-one to the physical interfaces of the router. The term "layer 3 switch" often is used interchangeably with router, but switch is a general term without a rigorous technical definition. In marketing usage, it is generally optimized for Ethernet LAN interfaces and may not have other physical interface types. In comparison, a network hub does not do any routing, instead every packet it receives on one network line gets forwarded to all the other network lines.

Routers operate in two different planes:
Control plane, in which the router learns the outgoing interface that is most appropriate for forwarding specific packets to specific destinations,
Forwarding plane, which is responsible for the actual process of sending a packet received on a logical interface to an outbound logical interface.

Control plane
Control plane processing leads to the construction of what is variously called a routing table or routing information base (RIB). The RIB may be used by the Forwarding Plane to look up the outbound interface for a given packet, or, depending on the router implementation, the Control Plane may populate a separate forwarding information base (FIB) with destination information. RIBs are optimized for efficient updating with control mechanisms such as routing protocols, while FIBs are optimized for the fastest possible lookup of the information needed to select the outbound interface.
The Control Plane constructs the routing table from knowledge of the up/down status of its local interfaces, from hard-coded static routes, and from exchanging routing protocol information with other routers. It is not compulsory for a router to use routing protocols to function, if for example it was configured solely with static routes. The routing table stores the best routes to certain network destinations, the "routing metrics" associated with those routes, and the path to the next hop router.
Routers do maintain state on the routes in the RIB/routing table, but this is quite distinct from not maintaining state on individual packets that have been forwarded.

Forwarding plane

For the pure Internet Protocol (IP) forwarding function, router design tries to minimize the state information kept on individual packets. Once a packet is forwarded, the router should no longer retain statistical information about it. It is the sending and receiving endpoints that keeps information about such things as errored or missing packets.
Forwarding decisions can involve decisions at layers other than the IP internetwork layer or OSI layer 3. Again, the marketing term switch can be applied to devices that have these capabilities. A function that forwards based on data link layer, or OSI layer 2, information, is properly called a bridge. Marketing literature may call it a layer 2 switch, but a switch has no precise definition.
Among the most important forwarding decisions is deciding what to do when congestion occurs, i.e., packets arrive at the router at a rate higher than the router can process. Three policies commonly used in the Internet are Tail drop, Random early detection, and Weighted random early detection. Tail drop is the simplest and most easily implemented; the router simply drops packets once the length of the queue exceeds the size of the buffers in the router. Random early detection (RED) probabilistically drops datagrams early when the queue exceeds a configured size. Weighted random early detection requires a weighted average queue size to exceed the configured size, so that short bursts will not trigger random drops.

Types of routers

Routers may provide connectivity inside enterprises, between enterprises and the Internet, and inside Internet Service Providers (ISP). The largest routers (for example the Cisco CRS-1 or Juniper T1600) interconnect ISPs, are used inside ISPs, or may be used in very large enterprise networks. The smallest routers provide connectivity for small and home offices.

Routers for Internet connectivity and internal use
Routers intended for ISP and major enterprise connectivity will almost invariably exchange routing information with the Border Gateway Protocol (BGP). RFC 4098[4] defines several types of BGP-speaking routers:
Edge Router: Placed at the edge of an ISP network, it speaks external BGP (eBGP) to a BGP speaker in another provider or large enterprise Autonomous System (AS).
Subscriber Edge Router: Located at the edge of the subscriber's network, it speaks eBGP to its provider's AS(s). It belongs to an end user (enterprise) organization.
Inter-provider Border Router: Interconnecting ISPs, this is a BGP speaking router that maintains BGP sessions with other BGP speaking routers in other providers' ASes.
Core router: A router that resides within the middle or backbone of the LAN network rather than at its periphery.
Within an ISP: Internal to the provider's AS, such a router speaks internal BGP (iBGP) to that provider's edge routers, other intra-provider core routers, or the provider's inter-provider border routers.
"Internet backbone:" The Internet does not have a clearly identifiable backbone, as did its predecessors. See default-free zone (DFZ). Nevertheless, it is the major ISPs' routers that make up what many would consider the core. These ISPs operate all four types of the BGP-speaking routers described here. In ISP usage, a "core" router is internal to an ISP, and used to interconnect its edge and border routers. Core routers may also have specialized functions in virtual private networks based on a combination of BGP and Multi-Protocol Label Switching (MPLS).
Routers are also used for port forwarding for private servers.

[edit] Small Office Home Office (SOHO) connectivity
Main article: Residential gateway
Residential gateways (often called routers) are frequently used in homes to connect to a broadband service, such as IP over cable or DSL. A home router may allow connectivity to an enterprise via a secure Virtual Private Network.
While functionally similar to routers, residential gateways use port address translation in addition to routing. Instead of connecting local computers to the remote network directly, a residential gateway makes multiple local computers appear to be a single computer.

Enterprise routers
All sizes of routers may be found inside enterprises. The most powerful routers tend to be found in ISPs and academic & research facilities. Large businesses may also need powerful routers.
A three-layer model is in common use, not all of which need be present in smaller networks.

Access
Access routers, including SOHO, are located at customer sites such as branch offices that do not need hierarchical routing of their own. Typically, they are optimized for low cost.

Distribution
Distribution routers aggregate traffic from multiple access routers, either at the same site, or to collect the data streams from multiple sites to a major enterprise location. Distribution routers often are responsible for enforcing quality of service across a WAN, so they may have considerable memory, multiple WAN interfaces, and substantial processing intelligence.
They may also provide connectivity to groups of servers or to external networks. In the latter application, the router's functionality must be carefully considered as part of the overall security architecture. Separate from the router may be a Firewalled or VPN concentrator, or the router may include these and other security functions.
When an enterprise is primarily on one campus, there may not be a distinct distribution tier, other than perhaps off-campus access. In such cases, the access routers, connected to LANs, interconnect via core routers.