Do you have to disable your Wifi on your existing Reuter if using time capsule to Create a new network

Does one need to disable the wifi on ones reuter if using a time capsule to create a new network what happens if you don't and what are the benefits of doing so

No but you may experience a bag of hurt from cross channel interference. You may have to reset the Subset Mask of one of the routers along with separating the broadcast channels.
Further if you then have one device a PC perhaps on one network and your Mac on another you may not be able to share files/ITunes etc.... with any ease.
So switching off the Wifi on the router/modem and hanging an Ethernet cable to the Time Capsule and setting that up as your WiFi router distributing the IP addresses over DHCP really is the least problematical approach.
IF you have cable Internet with a decoder with Ethernet output ditch your old router completely !

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