People tend to use the terms modem and router interchangeably. When they use these terms, it is to refer to a device that enables internet connectivity. However, there are major differences between a modem and a router, and they matter a lot in networking. In this guide, I will tell you about the differences between a modem and a router. But first, let’s look at what these devices are and how they work.
What is a Modem?
A modem is an integral part of your internet setup at home or office. It works as a translator between your devices and the ISP infrastructure. As you may know, your ISP brings analog signals to your home via coaxial or fiber cables. However, typical internet-connected devices need digital signals to work. A modem works as the middleman, who converts analog signals to digital and vice versa.

Why Do You Need a Modem?
As I said, a larger part of the internet infrastructure still uses analog signals. On the other hand, your devices, like smartphones or computers, cannot use these analog signals. Instead, they need digital signals. So, you need a translator between analog and digital to enable the smooth functioning of the network. As a result, modems were introduced.
Types of Modems
Depending on the existing infrastructure and existing, you may need different types of modems. Here are a few common options.
DSL Modems
DSL modems are designed to work with telephone lines that are used for internet access. DLS modems can convert telephone signals to digital signals and vice versa. The average speed on these DSL networks is very slow, though.
Cable Modems
Cable modems are designed to work with coaxial cables. These are still the most popular ways to access broadband internet in many parts of the world. While they offer better speeds than DSL modems, cable modems are at the end of their life, with optic fiber modems replacing them.
Fiber Optic Modems
Fiber-optic modems are currently the most popular modems, as they can convert fiber-optic signals to digital ones and vice versa. Since fiber-optic infrastructure is quite capable, the speed from fiber-optic modems is extremely high.
Satellite Modems
Satellite modems, on the other hand, connect to satellites that orbit the earth and convert the signals into digital and vice versa. These modems are popular in remote areas where coaxial or fiber-optic cables are not always available.
In addition to these, older models like dial-up modems also exist. But they are outdated, and the speeds are insufficient these days.
What is a Router?
A router is another important networking device that connects multiple devices within the network. It is also responsible for routing internet traffic between these devices and the modem. So, while a modem converts ISP signals to digital signals, a router is responsible for ensuring that these signals reach devices. Depending on the requirement, routers may use Ethernet or Wi-Fi to enable intra-device communication.

Why Do You Need a Router?
I mentioned that a modem can convert analog signals to digital signals that your devices can understand. But the modem isn’t capable of communicating these digital signals. This is where a router comes in. Routers are designed to route (verb) internet traffic between the multiple devices on your network. It also takes care of tasks like IP address assignment, network security, QoS, etc.
Types of Routers
As I said, there exist multiple types of routers that you can choose for different needs. Here are four types of routers you’d most commonly come across.
Wired Routers
Wired routers, as their name suggests, use wired infrastructure to manage internet traffic between multiple devices on a network. Ethernet is the most common wired option, and it ensures the best speed and stability compared to its wireless counterparts. You can find wired routers in office spaces and with gaming setups.
Wireless Routers
Wireless routers, on the other hand, use a wireless networking technology like Wi-Fi to manage traffic within the network. These routers, commonly known as Wi-Fi routers, are popularly used in residential spaces and offices alike. While the signals are prone to interference, Wi-Fi routers are easy to set up and wire-free.
Core Routers
Core routers are complex types of routers that you can find in enterprise situations. These devices pack so much power and can handle the internet traffic management needs of large-scale corporations. However, setting up a core router is expensive and complex.
Edge Routers
Edge routers are required when an enterprise wants to connect multiple networks. In most cases, they are designed to connect internal networks to external networks. Compared to other routers, edge routers offer more control over what enters the network.
In addition to these, you can find other types of routers, such as virtual routers. These devices allow you to manage internet traffic virtually without incorporating a hardware element into the network. You can also find other categorizations based on the number of bands, dedicated purpose, and additional features.
Do I Need Both a Modem and a Router?
As I have mentioned, modems and routers play unique roles in a network. While a modem is responsible for converting signals between analog and digital formats, a router makes these digital signals to your devices. Sure, some modems may allow you to connect an Ethernet port or two to one device, but it doesn’t cut it.
In short, you need both a modem and a router for a standard network at home or office. The best part here is that most modem-router setups allow you to use either Wi-Fi or Ethernet. So, you can choose between a convenient yet unstable or slightly inconvenient yet super-fast way of networking.
More importantly, modems and routers these days adhere to common networking standards. This way, you always have the option to expand specific aspects. For instance, if you don’t want to upgrade your modem, it is possible to get a better Wi-Fi router. This way, you will have better Wi-Fi connectivity without additional costs.
Modem-Router Combo Devices
These days, ISPs tend to combine modems and routers into a single device. As a result, you would have only one device in your room or house, consuming less power and involving fewer wires. In short, these devices are a more convenient option for most. However, they have some caveats.

- You cannot upgrade a single component from the group, such as the Wi-Fi
- Because these devices are controlled, you may not have many customization options
- The manufacturer may limit the upgradability options, such as Wi-Fi expansion or mesh routers
While you always have the option to use a router of your own, this involves additional setup from your side. Yet, if you already have a high-end router from a previous setup, you might as well use it.
Modem vs Router: Key Differences
Let’s take a quick recap of the key differences between a modem and a router.
Feature | Router | Modem |
---|---|---|
Purpose | Distributes internet and creates a local network. | Connects to the ISP for internet access. |
Function | Manages device connections via Wi-Fi/Ethernet. | Converts ISP signals to device-friendly data. |
Internet Sharing | Shares internet across multiple devices. | Provides internet to one device. |
Security | Includes firewalls, encryption, etc. | Limited or no security features. |
Local Network | Creates a local network. | Does not create a network. |
Standalone Use | Requires a modem for internet. | Can work without a router (single device). |
Combos | Often part of modem-router combos. | Often part of modem-router combos. |
In most cases, you need both the modem and router to have smooth internet access at home. Even though you may find a single router-modem combo device, it is a compressed version of both.
Conclusion
I believe this guide solved your queries about the differences between a router and a modem. Since more ISPs are using router-modem combination devices, you need to worry less about these differences. Yet, if you want to set up a custom network, you should understand what to consider while choosing a modem and a router.