Modem vs Router: What Each Box Does and Whether You Need Both

Behind most televisions in America there is a small pile of black boxes with blinking lights. Nobody in the house knows which one does what. Everyone is afraid to unplug any of them. One of them has been rented for eleven dollars a month since 2017.

Two of those boxes matter for your internet: the modem and the router. This guide explains what each one does, how to tell them apart, whether you need both, and whether you should be paying rent on either.

The short answer

A modem connects your home to your internet provider. It is the translator between the provider's network and your house.

A router takes that one connection and shares it with all your devices, usually over wifi. It is the traffic director inside your house.

The modem faces outward. The router faces inward. You need both jobs done. You do not always need two boxes to do them.

What a modem does

Your provider delivers internet in a form that depends on the technology: a signal on a cable line, light in a fiber strand, a signal on a phone line, a radio signal from a cell tower. Your laptop cannot use any of those directly.

The modem converts the provider's signal into a standard connection your equipment understands. Each technology needs its own kind of modem. A cable modem will not work on fiber. A cellular modem needs a SIM card and a cell signal instead of a wall jack.

A modem by itself usually offers one connection, through one Ethernet port. One device, one cable. That is where the router comes in.

What a router does

• Creates your wifi network, with the name and password you know.
• Shares one internet connection among every phone, laptop, TV, and gadget in the house.
• Directs traffic, so the video goes to the TV and the email goes to the laptop.
• Provides a basic barrier between your devices and the open internet.

A router with no modem behind it makes a wifi network that goes nowhere. That is the "connected, no internet" message. We explain that in wifi vs internet.

The combo box

Many providers supply a single box that contains both a modem and a router. It is often called a gateway. One box, one power cord, less clutter. If your provider gave you one box and you have wifi, it is a gateway.

A Beakom modem is this kind of device. It connects to the cellular network, which is the modem job, and creates your wifi network, which is the router job. There is no second box to buy or rent.

How to tell what you have

• One box from your provider, and you have wifi: gateway.
• Two boxes connected by a short cable: the one attached to the wall line is the modem. The other is the router.
• A box with antennas or a wifi logo: it has a router in it.
• A box with a coax, fiber, or phone line going into it: it has a modem in it.

Should you rent or buy?

With cable internet, many providers charge a monthly rental for their modem or gateway. Over a few years that adds up to more than the box costs. Buying your own compatible modem can stop the fee, but check three things first.

1. Does your provider allow customer owned modems? Most cable companies publish a list of approved models.
2. Will they actually remove the rental fee? Get it confirmed.
3. Who supports it when something breaks? With your own equipment, the provider may point at your box.

With fiber and carrier home internet, the provider's equipment is usually required. Satellite requires the provider's dish and hardware, commonly purchased up front.

Equipment rental is one of the most common lines people overlook. Our hidden fees guide shows where to find it on your bill.

How Beakom handles equipment

• The modem is free to use on both plans. There is no equipment fee, ever.
• It ships free with the SIM card already inside. Nothing to install.
• It remains Beakom property. We hold a $100 refundable deposit at checkout, which is also how we skip the credit check.
• When you cancel, you send it back within 30 days with the prepaid label, and the deposit returns within 10 business days of it arriving.
• If it is not returned, or comes back damaged, $150 is billed to the card on file. We tell you that before purchase, at checkout, and on every receipt.

The details are in the modem deposit, explained.

Where the box should go

Placement advice depends on the type of modem.

A wired modem or gateway has to sit where the line enters the house. The only placement question is wifi reach: central, high, and out in the open is best.

A cellular modem has two jobs to balance. It needs good signal from the tower, which means near a window, up high, and away from metal. It also needs to reach your devices over wifi. When the two conflict, the window wins. Our modem placement guide has a ten minute test for finding the best spot.

Do you ever need a separate router with a cellular modem?

Most homes do not. The modem's own wifi covers a typical house or apartment.

A very large home, or one with thick interior walls, may have rooms the wifi does not reach well. That is true with any internet provider. The Business plan modem includes an Ethernet port, which lets you connect wired equipment such as a point of sale terminal, a camera recorder, or your own networking gear. How you configure your own gear is up to you or your IT person.

What to do with the old boxes when you switch

• Return rented equipment right away and keep the receipt. Unreturned equipment fees are a classic parting gift. See how to switch providers with no downtime.
• Unplug the old router. If it stays on, your devices will keep joining a wifi network that leads nowhere.
• Do not stack the new modem on the old router. Two radios that close interfere with each other.

The restart, explained

"Turn it off and on again" works because both modems and routers are small computers that can get into a confused state. A restart makes the modem reconnect to the provider from scratch and clears the router's traffic tables. Turn it off, wait thirty seconds, turn it back on, and give it a couple of minutes. More in our troubleshooting checklist.

Quick comparison

Frequently asked questions

Do I need both a modem and a router?
You need both jobs done. One combined box can do them.

Will a better router make my internet faster?
It can improve wifi coverage inside your home. It cannot deliver more than your internet connection provides.

Can I use my old cable modem with Beakom?
No. Cable modems connect to cable lines. Our service uses a cellular modem, which we provide.

Do I pay for the Beakom modem?
No. It is free to use while you subscribe. You pay a $100 refundable deposit, which comes back when the modem does.

The bottom line

The modem connects you to the provider. The router shares that connection over wifi. Many boxes, including ours, do both. Check your bill for a rental fee on yours, and unplug anything left over from a provider you no longer use.

See How it Works for what arrives in our box and how setup goes.