Modem is a device that modulates and demodulates information between two devices across a network. Modem is an abbreviation for modulator/demodulator. It is a device that sends digital information across a telephone network.
The information sent by a computer to the network is in digital form. The telephone network cannot use digital data. The modem modulates the data into information that is compatible with the network. This information passes across the network. The data that comes out of the network is not in digital format. The computer on the other end cannot use this data. As a result, the modem on the other side of the network demodulates the data to digital format that is compatible with the receiving computer. We use many online services effectively with the help of the modem. A modem can be an internal component of the PC or it can be an external device. We connect external modems to the serial port of the computer. 
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