The difference between a modem and a router is that a modem connects to the internet and a router connects devices to wifi. We’ve reviewed both to help clear up the confusion about how they work and help you choose which device you need for your internet needs.
Modem vs. Router – What’s the Difference?
It’s easy to confuse the two devices if your Internet Service Provider (ISP) rents both to you as part of an Internet package. Knowing the difference between a modem and a router and how each works can help you be a better consumer. You’ll save money by buying the equipment instead of paying a monthly fee to an ISP.
A modem connects your Internet source from your ISP to your home network, whether you use a cable provider like Comcast, fiber from FIOS, satellite like Direct TV, or a DSL or dial-up connection. The modem connects to your router, or directly to a computer, using an Ethernet cable. Modems are different for each type of service; they are not interchangeable.
ISPs rent modems to subscribers for a monthly fee. Cable modems, however, can be purchased for relatively low prices. Monthly rentals are about $10 extra per month. If you plan to keep the same service for a year or more, you can quickly pay for yourself by purchasing a cable modem, which costs about $100. FIOS-compatible modems are hard to find, so in that case it might be worth renting one from Verizon. Some ISPs lease both modems and routers.