A Personal Area Network (PAN) is used for communication among devices like phones and personal digital assistants, either for intrapersonal communication or for internet access. Wireless PANs (WPANs) utilize technologies such as Bluetooth and infrared, allowing connections within limited ranges of up to several meters. While WPANs offer advantages like simple setup and portability, they face limitations in range, slower data rates compared to LANs, and potentially higher costs for WPAN-enabled devices.