1) In a connectionless datagram subnet, packets are routed independently without establishing a connection. Routers break messages into packets that are forwarded based on internal routing tables.
2) In a connection-oriented virtual circuit subnet, a connection path must be established before packets can be sent. Each packet carries an identifier of its virtual circuit. Routers replace circuit identifiers to avoid conflicts at downstream routers.
3) Both approaches were compared, noting that connectionless datagrams require no setup but have independent routing, while virtual circuits require setup but can forward all packets along the same pre-established path.