Abstract: We discuss basic considerations for potential short-range THz communication systems which may replace or supplement present WLAN systems in 10–15 years from now. On the basis of a few fundamental estimations we show that such a system will need a line-of-sight connection between receiver and emitter. To circumvent the blocking of the direct line-of-sight connection indoor THz communication systems will also have to rely on non-line-of-sight paths which involve reflections off the walls. The reflectivity of the walls can be enhanced by dielectric mirrors. This new scheme makes steerable high-gain antennas a necessity. Hence, a wireless THz communication system can not be a simple extension of the existing technology of today's local area networks. Instead it involves completely new concepts and ideas that have not yet been worked upon.