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The definition of a modem is a tool that sends and receives a signal to create a network and Internet connections. An example of a modem is a tool that lets a computer connect to the Internet.
A router routes while a modem modulates! Modem is short for modulator-demodulator. A modem is about line/channel coding - very low level details which most do not care about but that is what really makes the thing fly! It deals with low level encoding etc - A/D conversion, signal processing etc.