The physical connection determines how many bits (1's or 0's) can be transmitted at a single instance of time. If only 1 bit of information can be transmitted over the data transmission medium at a time then it is considered a Serial Communication
If more than 1 bit of information is transmitted over the data transmission medium at a time then it is considered a Parallel Communication.
http://www.techbooksforfree.com/intro_to_data_com/page36.html
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