Router vs. Modem: What’s the Difference?

Routers and modems are both key components of home networks, though they serve different purposes in establishing and maintaining your network connection. Routers direct traffic between devices on your local area networks (LANs). Modems establish connections between your home network and your internet service provider (ISP).

Explore the key features of a router and a modem, as well as the advantages, disadvantages, and different types of products to better inform your network decisions.

What is a router?

A router is a type of networking device that directs data traffic between your devices on local area networks (LANs) and the internet. Routers perform 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.

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 devices and the internet

Types of routers

When choosing a router, you may pick between several options, each with its own features and properties that suit different functions. Consider these features when beginning your search:

• Wired versus wireless router: You can choose between a wired and wireless router, which will use a wireless connection (Wi-Fi) or Ethernet cables to connect devices physically.

• Core router or edge router: A core router connects devices within networks but not between multiple networks. This type of router is central to your network. Conversely, an edge router connects your network to other networks and is found on the edges of your network. An edge router can’t share data within a network.

• Virtual or physical router: Most routers are physical pieces of equipment, but a virtual router is software that uses a virtual machine to enable a computer or server to work as a router. 

• Home versus enterprise router: A home router connects home devices to the internet, while an enterprise router connects devices for a company or larger organization. A home router can be simpler than an enterprise router, including advanced features for more complex connections. 

Who uses a router?

Anyone who would like to connect multiple devices to the internet and facilitate communication between these devices will likely benefit from a router. Routers enable wired and wireless connections, allowing you to share information between devices, such as files, streaming media, and centralized data. For example, connecting your laptop to the internet or streaming a movie from your smart TV are two ways to potentially use a router in your home.

Advantages and disadvantages of routers

Routers offer several advantages and disadvantages, depending on the type of router and use. What you consider a pro or con will depend on personal preferences. Commonly considered advantages and disadvantages include:

Advantages of routers

• Multiple device connectivity

• Firewall protection

• Local resource sharing between devices

• Customizable settings for parental control

Disadvantages of routers:

• Risk of hacking

• Reduced connection in some placements due to physical barriers

When choosing a router for your home or business, discuss your wants and priorities with your internet service provider or router company about the features you feel will be most important to you. Internet service providers typically bring a router to your home as part of your service package. You may upgrade to a more advanced router if you prefer. This may help ensure you maximize the advantages of your router choice while minimizing potential disadvantages.

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

Types of modems

Modem designs exist for different purposes. In general, the type of internet connection you are looking for will help determine the right modem for your needs. Common types of modems include:

• Cable modem: Uses coaxial cables for internet connection

• Fiber modem: Uses fiber-optic cables to provide high internet speed

• DSL modem: Uses the telephone for data transmission

• Satellite modems: Uses satellite technology for internet access.

Who uses a modem?

Typically, anyone who connects their routers or devices to an ISP network uses a modem, including business and residential users.

Advantages and disadvantages of modems

Consider several advantages and disadvantages of modems when deciding if a modem is right for you. Discuss any concerns you may have with a networking professional to ensure you make the right choice for you. Some commonly considered advantages and disadvantages of modems may include:

Advantages of modems:

• Ability to establish a connection between the home network and ISP

• Reliable connection between router and internet

• Ability to connect with many types of internet services

Disadvantages of modems:

• Limited to one connection point without a router

• Limited bandwidth when using cable modems

Other things to consider

In addition to understanding the basics of routers and modems, you may want to take other factors into consideration when looking for these networking components.

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 features to ensure you are protecting your network. 

Learn more on Coursera 

Routers and modems are both important parts of a home network system, but they have different functions. Understanding the differences between the two and how each serves your network needs may help you make informed decisions about the technology in your business or home. 

If you’re ready to take the next step, build relevant knowledge about routers, modems, and home networking by completing the Akamai Network Engineering Professional Certificate or the IBM Cybersecurity Analyst Professional Certificate, both offered on Coursera.

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