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The word “modem” means of “modulator-demodulator.” It’s called a modulator-demodulator because it modulates digital signals to analog signals and demodulates analog signals back to digital signals. By modulating digital signals to analog, a modem allows a computer to transmit data as electrical pulses over wires to other computers. Likewise, a modem converts the pulses to the original digital information that receiving computers can read when demodulating.

Types of modems

Internal modems: A modem card is an internal component that fits on a motherboard’s expansion slot, like Peripheral Component Interconnect (PCI). Internal modems typically use telephone landlines for dial-up Internet access. These types of modems are less popular nowadays than the external variety.

External modems: An external modem is a self-contained device that sits outside a computer and draws power independently. External modems usually feature lights that show the status of a connection. Such modems can use cable or DSL for broadband Internet or phone lines for dial-up Internet.