does the time capsule have to be plugged into the internet modem

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    Yes, you use an ethernet cord and plug one end into the #1 port of the modem, and plug the other end into the bottom ethernet port of the Time Capsule. If your modem is a modem/router you will need to have your ISP bridge the modem so you can use it as modem only using your own router (Time Capsule).

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