While some homes opt to purchase their own modem, saving a leasing fee of about $120 a year, it's important to note that you can't buy just any modem. The modem has a public IP address for your service provider to direct traffic.īroadband providers typically lease modems to their subscribers, which can come with the added benefits of having a better managed service. It does this by connecting to the broadband company's telephone lines, optical fiber, or coaxial cabling and converts the information to a digital signal. Your modem acts as a tunnel to carry information from your ISP’s network to your local network. ModemĪ modem ('modulator-demodulator') is a device used to connect to the wider internet access, provided by an ISP. gateway-when purchasing and managing home networking equipment. Here, we break down the three most used terms-modem vs.

Each available device is different and has its own purpose for networking, but it's easy to become confused from all of the available choices. Often, your broadband provider's available hardware is what dictates your experience. The end goal is to have a fast, consistent WiFi experience, but there are many parts that come into play toward delivering on that experience.

It’s easy to get confused when dealing with networking equipment at home.

Difference modem vs router