Modems (MODulator DEModulator) are the connection between your local network and the Wide Area Network (or Internet). The original Modems would convert the digital signal from your computer (or network) into an analog signal that would travel over your phone lines. DSL Modems continue to do this. Cable modems convert the signal to the appopriate type for your cable (Digital, analog, or light for fiber optic networks). Most modems today also handle the router and switch functions for your local network--although they may be limited in the number of ports available. You can combine a modem with a router, switch, or a hub to increase the number of ports available.
In Enterprise networks, you will probably be dealing with CSU/DSU's which connect to your internal routers and your Internet Service Provider's equipment.

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