Router vs. Modem: What’s the Difference?

Written by Coursera Staff • Updated on

Routers and modems both serve a role in a computer network with very different functions. Explore the differences between routers and modems to ensure you make informed network decisions at home or in your workplace.

[Featured Image] Colleagues discuss the differences between a router and a modem while searching for answers on their tablets.

Key takeaways

Routers and modems are distinct networking components where routers direct traffic between local devices and modems establish the primary connection between a home network and an internet service provider.

  • Router vs modem differences center on their primary roles: a router creates a local area network (LAN) and directs data between devices, whereas a modem creates a wide area network (WAN) by converting signals from an internet service provider.

  • Modems function by converting internet service provider (ISP) signals into an interpretable format for local devices and then converting device signals back for the ISP to interpret.

  • You can discuss your priorities and required features with an internet service provider or router company to help ensure you maximize advantages while minimizing potential disadvantages.

Read on to learn more about the key features of a router and a modem. Then, build job-ready skills and gain credentials by enrolling in the Akamai Network Engineering Professional Certificate.

Router vs modem

A WiFi router is a type of networking device that directs data traffic between your devices on local area networks (LANs) and the internet. Routers perform this by analyzing the incoming and outgoing data and then sending this data to the correct destination. This type of technology is important to enable wireless connections between devices such as smartphones, smart watches, laptops, tablets, and other smart devices.

A modem, also known as a modulator-demodulation, is a type of network device that connects your home internet network with your ISP. It accomplishes this by converting the ISP signal into an interpretable signal for your devices and then converting your device signals into a signal appropriate for the ISP to interpret. A modem also assigns your home a public IP address, or internet protocol address, on the Wide Area Network (WAN).

Routers perform the following essential functions:

  • Connect multiple devices to the internet

  • Create LAN network

  • Provide wired and wireless communication 

  • Share data and resources across devices

  • Direct data traffic between wireless devices and the internet

What is a modem?

A modem, also known as a modulator-demodulation, is a type of network device that connects your home network with your ISP. It accomplishes this by converting the ISP signal into an interpretable signal for your devices and then converting your device signals into a signal appropriate for the ISP to interpret.

Key functions of a modem include:

  • Establishes the network connection between your home network and ISP

  • Creates WAN network

  • Converts ISP signals to signals for your devices

How to choose the right modem

When choosing a modem, consider factors such as compatibility, speed, and future-proofing. You may benefit from a modem compatible with your ISP and your internet service. If you have concerns about whether your modem will be compatible, call your internet service provider to ensure you know what specifications to look for. Consider looking for a modem that supports the speed of the internet connection you have in your home or place of business and one that you can upgrade when new technology is available.

How to choose the right router 

When choosing a router, consider the router’s coverage, speed, and security. The router's coverage relates to the space in which you will need network connectivity. Depending on your area, you may need a more powerful router or several routers. You may want to seek out a router with USB ports, apps, dual-band support, or other features that may suit your needs. In addition, look for routers with encryption or other security measures to ensure you are protecting your network. 

Keep learning with these free resources

Understanding the differences between routers and modems may help you make informed decisions about the technology in your business or home. Learn more about these and other IT topics by checking out these free resources:

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