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Modems work by converting digital signals on the computer to and from the analogue signals needed by telephone lines. Their name is derived by combining the two words, modulator and demodulator.
They consist either of a box of electronics connected to your computer by a cable (an external modem), or a card which fits inside your computer (an internal modem). They also have a telephone line socket, which is why they must be approved by the
Australian Communications and Media Authority(1) (ACMA) for use in Australia.
Your modem must be compatible with your computer type, so when you buy one make sure you've got the right software and computer cable for your type of computer.
Some modems also come with software that allows your computer to send and receive faxes, or even act as a telephone answering machine.
The speed of a modem is measured by the rate at which it sends and receives data. This is expressed as bits per second (bps) or thousands of bits per second (Kbps). The term baud is approximately equivalent to bps.
Some modems have a V number on them to express their speed and features. V32bis modems run up to 14.4 kbps, V34 modems up to 28.8 kbps, and V34plus modems up to 33.6 kbps. The most recently-adopted standard is the V.90 standard for 56 kbps modems. If you buy one of these V.90 standard modems check that your Internet Service Provider (ISP)(2) supports the standard.
Telephone lines are the cheapest way of connecting to the Net, allowing connection speeds up to about 56 kbps. No matter what your modem speed is, actual connection speed may be less than the modem's rated speed depending on the quality of the line.
Connection speed may also vary from connection to connection. You can run your Internet connection from your existing telephone line but if you do, be aware that when you are online you cannot receive or make telephone calls using that line.
You might want to get a separate line for the Internet connection or, if you have a fax line already and you don't use it a lot, you can probably utilise this connection.
If you want faster connections to allow you to spend less time online, or to make your time online more interesting and more immediately interactive, you can get connected through ISDN lines or cables (like cable TV).
These are more expensive connection options which you should discuss with your ISP.
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