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1. Basically everything has one anyway.
2. Supposedly, Comcast will enable IP control of the X1 boxes for home theater integration. If they do, allowing it to connect via Ethernet would be one way of doing that (or else it would require a MoCA adapter to bridge the user's LAN with the XG1's MoCA LAN).
Correct me if i'm wrong. To my understanding, the ethernet port is used when you are in an app mode i.e. Netflix, Hulu, or amazon prime if available.
Also, it allows you to rent on demand newly released movies or that are not free.
Thanks for the reply.
Now I know why Nighthawk port indicator light is showing amber.
So all signals are going through the cable input then unlike my old x1 box which had an active ethernet port (i think).