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What limits the number of clients that can connect to a wireless router?

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linux-howto

http://serverfault.com – After browsing serverfault and superuser for a while, I have noticed many posts about wireless router connection limits such as this one and this one. The sane limit for a router (without dropping connections excessively) seems to be around 40 (at most). Is there an explanation for why this limit exists? (HowTos)