A Modem, short for modulator-demodulator (more explained below), is essential to having an internet access. Think of a modem as a dedicated line to your ISP (Internet Service Provider), wherein, its sole purpose for existence is to consistently/always maintain the internet connection that’s received from your ISP’s cable. (Be it fiber optic, coaxial, phone lines, etc.)
Every home internet connection will have a modem that uniquely establishes an internet connection from their ISP — even if it’s the same ISP that everyone in the neighborhood uses.
Role of Modems in the Entire “Internet Connectivity” Ecosystem
What I described above, is only part (yet critical & necessary) role of a modem. The entire reason modems were invented in the first place was due to the primary reason below.
Signals
You see, computers only understand digital signals. Whereas, the signals on the internet are the opposite/a.k.a, analog.
As evident, the differences in signals can cause for severe miscommunication or no communication at all. This is exactly where a modem comes into play.
A modem acts as an interpreter between the two, where it converts the analog internet signals into digital for computers — and also the converse, where it translates the computer/devices digital signals into analog for the internet.
This entire process of conversion (back & forth) is referred to as modulation (Computer to the internet) & demodulation (internet to Computer). And as you might have guessed, that’s where the name Modem is derived from. It’s a portmanteau of modulator & demodulator.

Other Modem FAQs
Technically, you do. It’s likely not sold as a separate device because it’s built-in into your router. Most of the modern routers come with a combo package. It’s not necessarily a bad thing. If anything, it’s more convenient, and hey, fewer cables.
A modem is what enables the ability to make internet possible (literally), whereas, a router is primarily responsible for allowing you to connect more than one device to the internet. In other words, it “routes” the internet access to your phones, tablets, desktop, laptops, kindles, etc. Think of routers as a traffic police.
Most of the modern routers can permit multiple Ethernet (Wired) connections AND also the Wi-Fi.
Technically, it may be possible, if all you care about is just one device/laptop having a wired connection. Is it recommended? No, because modems, while necessary, doesn’t do much when it comes to providing security. With routers, you can implement stricter safety measures for accessing your home internet.
No. To generate a Wi-Fi connection, you’d need a router. Having that stated, a popular term that’s circling around in the internet community is what’s called a “Wi-Fi Modem.” Essentially, as briefly discussed above, these are nothing but a router + modem combination, clubbed into one single router unit.
Typically, most of the modems fall into three categories: cable, DSL, and dial-up. Cables use coaxial cables to transmit high-speed internet. These can connect to your cable box, or you’ll likely have a wall unit for it. Both DSL and dial-ups connect to your phone lines. A Fiber Optic Modem (FOM), on the other hand, is essentially a modem specifically made for Fiber Optic connections. This type of internet is incredibly fast, and uses light, as opposed to regular analog signals. Therefore, none of the regular modems can help here, and as you may have guessed, you’d need a FOM to decipher lights into digital signals & vice-versa.
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Conclusion
As we live and breathe today, it’s indisputable that we need to constantly stay online. Not from just one device, but from multiple. Another undeniable fact is that we’re always concerned about getting hacked, or someone stealing our Wi-Fi connection to perform questionable activities on the internet, while at the same time, eating away our bandwidth.
Whatever the case may be, when it comes to getting online, you certainly need a modem (separate or built-in), and for a better peace of mind, a router — as it can equip you to effectuate more rigid security standards to your internet connection. After all, getting one is not cheap these days, so you’d want to make sure no one else, or no one outside of your knowledge, is connected to your internet/Wi-Fi.