A modem converts digital signals from a computer to analog signals for transmission over telephone lines or cable, and vice versa. A router creates a local area network (LAN) and allows multiple devices to connect to the internet simultaneously and communicate with each other on the LAN. While a modem connects to the internet, a router connects to both the modem and devices on the LAN. Most homes require both a modem and a router, though some internet service providers offer combo devices that integrate both.