Difference between
Modems and routers
Modems and routers are both involved
in connecting your home PCs to the Internet. The modem encodes and decodes data so that it can pass between your home
network and your Internet Service Provider (ISP). The router, on the other
hand, directs the information collected by the modem to devices within that
network. The modem brings the information in, and the router distributes (or
“routes”) it to different devices like computers and phones. 
Comparison chart 
| 
Modem | 
Router | |
| 
Layer: | 
Data link layer
  (Layer 2) | 
Network Layer
  (Layer 3 devices) | 
| 
Ports: | 
2.One for
  connection to ISP. Next one to connect with router(For large networks) | 
2/4/8 | 
| 
Device Type: | 
Inter-networking
  device | 
Networking device | 
| 
Function: | 
Facilitates a
  connection to the internet by transmitting and receiving data over telephone
  lines. | 
Directs data in a
  network. Passes data between home computers, and between computers and the
  modem. | 
| 
Data Transmission
  form: | 
Packet | 
Packet | 
| 
Connections: | 
Can connect to one
  PC using Ethernet port | 
Can connect to
  multiple PCs or networking devices via Ethernet or WiFi | 
| 
Necessary for
  Internet Connection?: | 
Yes | 
No, but provide
  additional security and allow for multiple connections. | 
| 
Independent?: | 
Yes. A modem can
  work without a router, delivering information (such as Internet access) to a
  single PC. | 
Routers can share
  information between computers, but cannot connect to the Internet without a
  modem. | 
| 
Security: | 
No security
  measures | 
Provides security
  measures to protect network | 
How a modem and router connect to each other, the
Internet and devices on the network.
A modem transmits and receives data through telephone lines,
and is used to connect a single computer or an entire home computer
network to the Internet Service Provider (ISP). 
A router allows computers to connect to the
modem and to each other in a network. It selectively delivers packets of
information to multiple destinations, and allows multiple devices to connect to
the Internet via the modem. 
A modem can only connect to one device: either a home PC or a router. 
A router can connect to multiple devices in a network, either through Ethernet cables or through WiFi. 
Security
A modem does not screen the data it encodes or decodes, and so it
passes on any potential threat to connected computers. 
Routers examine data packets to determine their destination,
and so can contain firewalls to screen out attacks on the network. 

 
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