Modem vs Router

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If you aren’t already tech-savvy, it can be difficult to figure out the difference between a modem vs. router. But if you want to set up your own internet and WiFi, it’s important to know what distinguishes the two. 

• A modem is a box that connects your home network to your internet service provider. 
• A router connects your devices to your home network, which then allows them to communicate wirelessly with one another. 
• A modem router combo will combine the functions of a modem and router into one device. You may hear these devices sometimes referred to as wireless gateways. 

To help you learn more about the differences between modems and routers, we’ve created this simple guide to help you understand what modems and routers do, which devices you need, and what to know about using them.

Jump to:

• What is a modem?
• What is a router?
• What is a modem router combo?
• Renting vs buying a modem
• Frequently asked questions

What is a modem?

A modem is a hardware box used to establish a connection with your internet service provider (ISP). It does this through connected cable or phone cords. Modems take the signal transmitted through these lines and allow the data to be compatible with computers and access the internet.

A cable modem can be wired directly to your computer (or another digital device) to provide internet access. But a modem doesn’t provide WiFi — that’s what a router does. If you set up a WiFi network in your house, you will need to connect your modem to your router first, so that it can create wireless internet access. 

Types of modems

To use your modem to its full potential, focus on speed and compatibility when choosing which type of modem you want. The speed of your modem needs to be able to match the speed provided by your ISP. Meaning, if you have a download speed of up to 500 Mbps, your modem needs to be able to handle download speed of up to 500 Mbps or higher. 

Before choosing a modem, you’ll also want to make sure it’s compatible with your ISP. Your ISP should be able to tell you which modems are compatible, and likely have recommendations on some of the best modems for your internet package. 

Here are a few of the most common types of modems you’ll see:

• Cable modems: uses TV networks to provide high-speed data access and is one of the most popular modem types. 
• DSL modem: uses telephone lines to provide high-speed connections. 
• Satellite modem: uses satellite dishes to provide internet connections. Generally provides a more stable internet connection.

It’s important to note that If your internet service provider uses a fiber-optic connection, you won’t need a modem. Fiber connections are already fully digital, so there’s no need for a modem to translate the signal. However, If your ISP uses a cable or DSL connection, you will need a modem to translate the signal. If you want WiFi, you will need to get a router too. 

What is a router?

Routers work in partnership with a modem. They take the internet signal from the modem and make it wirelessly available throughout your home. This allows you to create a local area network (LAN), the network of devices in your home that all connect to and use your internet. Note that if you do not need a WiFi network and plan to connect your computer to the modem directly, you do not need a router. 

A router can also act as a firewall between your home’s devices and the internet. This can be useful for protecting your privacy and the security of your devices. This security can be enhanced by outfitting your router with a virtual private network (VPN). This obscures your real IP address by running your internet connection through a dummy network. Some routers come with VPN functions built-in, but you can also DIY your own VPN or pay for a VPN service. 

Your main consideration when choosing your router should be speed. Just like your modem, your router needs to be able to match the download speed from your ISP. Also, if you plan on upgrading your internet speed at some point, it may be worthwhile to invest in a router capable of higher speeds than what you currently have. 

What is a modem router combo?

Modem router combos combine the two functions of both in one device, sometimes referred to as “wireless gateways.” They can be useful when you want to simplify your setup by minimizing the number of devices you have to configure and manage. 

One reason not to go for a modem router combo is that the technical requirements of routers continue to advance, but modems can stay useful for many years. This means that you will regularly need to upgrade your modem router combo instead of just the router from time to time.

Renting vs. buying a modem

Many ISPs will offer you a modem, router, or modem router combo as a part of your internet service package, often for a monthly rental fee ($10 or more per month). This can be useful if you don’t want to deal with buying your own modem and making sure it’s the right choice, but it can cost more in the long run. 

One benefit is that you can get more tech support from your ISP in return. If something seems to be wrong with your modem router combo, support can help you with troubleshooting, sometimes even remotely.

If you expect to alter the advanced settings of your ISP-provided modem, router, or modem router combo, it can cause problems. That’s why it’s best to avoid renting if you plan for more than basic home use. Additionally, having a separate modem and router will give you even greater control over your settings. 

It may not be apparent to most users, but there are many reasons for using a modem or router’s advanced settings. These can include creating custom parental controls and even prioritizing the download or upload speed of specific services (like a streaming service or online gaming platform). 

Do I need other devices?

Depending on your circumstances, you may need some accessories to enhance the function of your modem and router. For example, if you have a large home and your WiFi signal is weaker in the rooms farthest away from the router, you will need a range extender to expand your router’s signal reach. Mesh network routers also perform a similar function, creating multiple signal points to ensure complete coverage of an area. 

Frequently asked questions

Do I need a modem or a router?

Modems are necessary for you to establish a connection with your internet service provider (ISP). You’ll need to add a router if you want to set up a WiFi network. Some ISPs will rent these devices to you, or you can purchase your own. 

Should I rent or buy my router?

Renting your modem or router is more expensive long-term, but it can be useful if you need your ISP’s tech support or have trouble figuring out which device to choose. If you’re comfortable configuring and supporting your own devices, consider buying your own equipment to save some cash. 

How much do modems and routers cost?

As of early 2022, typical modems can cost anywhere from $45 to $200 plus. Basic routers are usually priced in the range of $25 to $100, while more advanced routers can exceed $300. Modem router combos can cost $100 to $200 or more. 

What if I need help installing my modem or router?

If you rent your modem, router, or modem router combo from your ISP, they will usually offer setup and troubleshooting services. Buying your devices from a major retailer like Best Buy can also get you professional installation service. 

What are the most popular brands of modems and routers?

Arris, Linksys, Motorola, and NETGEAR are some of the bestselling brands for both modems and routers.