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The more common DSL router is a standalone device that combines the function of a DSL modem and a router, and can connect multiple computers through multiple Ethernet ports or an integral wireless access point.
You're confused between a router and a modem. A modem is a translator (a modulator-demodulator.) It changes one form of signals into an other. An ADSL Modem changes ADSL signals (varying frequencies) into on-off signals (the wired LAN standard).