I have seen this term used for notebooks and motherboards where the NIC (Network Interface Card) is built-in to the system.
Personally, I prefer to have all periphials as seperate plug-in cards. They use fewer system resources, and if anything goes wrong, you only need to replace the card, and not the system.
You need a NIC for most broadband internet connections, and if you plan to network multiple computers.
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What is integrated NIC?