The document discusses how to create subnetworks by subnetting IP addresses. It begins by identifying the advantages of subnetting such as reduced network traffic, optimized performance, and simplified management. It then explains the concept of subnetting by dividing large networks into smaller, more manageable subnets. The document provides examples of how to determine the number of subnets, hosts per subnet, valid subnet addresses, broadcast addresses, and host ranges given an IP address and subnet mask. It also discusses default subnet masks for classful networks and how Classless Inter-Domain Routing (CIDR) allows more flexible subnet sizes.