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Shielding is when Ethernet cables or shield twisted pair (STP) cables have an outside layer or “shield” of conductive material around the internal conductors, which needs to be grounded to cancel the effect of ElectroMagnetic Interference (EMI). The conductive shield can reflect or conduct external interference away without affecting the signals of the internal conductor. Therefore, shielded Ethernet cables are usually used to protect signals from EMI over the length of the cable run, so as to result in faster transmission speeds and fewer data errors.

Source: http://www.fiber-optic-components.com/shielded-vs-unshielded-ethernet-cable-use.html