By: Vincent Totino
Read Time: 7 min.
August 20, 2026
When setting up the Internet in your home, you'll often hear about modems and routers. Some people use these terms interchangeably, but they are two distinct devices with different functions. A modem connects your home to the Internet, while a router creates a network within your home, allowing multiple devices to connect.
The question is: Do you need both? In this article, we'll explain what modems and routers do, their differences, and how to choose the best setup for your home or office Internet.
A modem is a hardware device that connects your home network to the Internet through your Internet service provider (ISP). It translates the digital signals from your devices into analog signals that can travel over a coax cable, DSL, or Fiber optic lines and vice versa. . The most common types of modems are cable modems, DSL models and Fiber optics modems.
In most cases, the Internet Service Provider (ISP) rents modems to their customers, which may include additional perks. However, purchasing your modem can save you money on monthly rental fees (up to $150 per year* depending on your current rental prices).
A modem provides a wired Internet connection and if you have only one to connect to the Internet, such as a PC or laptop, a modem alone may suffice. However, if you have multiple devices or use the Internet wirelessly (Wi-Fi), you'll need a router.
A router is a device that distributes the Internet connection to devices in your home. It creates a network that allows multiple devices to connect to the Internet at once.
Some routers, known as cable modem routers or gateways, combine modem and router functions in one device. However, if you prefer more control over the network settings and security, a separate modem and router may be the way to go.
When setting up your home network, you can buy your own router or rent one from your Internet Service Provider (ISP). Buying can help save you money in the long run, but renting from your ISP offers the benefit of access to technicians and assistants. Your choice depends on your needs for network control, budget, and technical expertise.
A wired router connects your devices via Ethernet cables; wired routers provide a more stable, lag-free connection and are ideal for desktop computers or gaming systems that stay in one spot. A wireless router transmits the signal via Wi-Fi, providing access and connectivity to mobile devices like phones, tablets, laptops, etc. Many modern routers offer both wired and wireless capabilities.
Modem: gets you online at all - required. Con: only one wired connection, no WiFi, weaker security on its own. Router: the connection across devices, adds WiFi and security. Con: useless without a modsharesem to feed it.
Gateway (combo): one device, simpler setup. Con: less flexibility - can't upgrade modem and router separately, and if it fails, you lose both functions at once.
| Device | What It Does | Pro | Con | Do You Need It? |
|---|---|---|---|---|
| Modem | Converts your ISP's analog signal to digital, connecting your home to the Internet | Required for any Internet access | Only 1 wired (LAN) port — one device at a time, no WiFi, minimal built-in security | Yes, always |
| Router | Distributes the Internet connection to multiple devices, wired or wireless | Enables WiFi, supports many devices at once, adds network security (firewall, WPA3 encryption) | Can't connect to the Internet on its own — needs a modem | Yes, if using WiFi or more than one device |
| Gateway (modem + router combo) | Combines both functions in a single device | Simpler setup, one device to manage, often provided by the ISP | Less control over settings, can't upgrade modem/router separately, single point of failure | Optional — depends on how much control you want |
To get the most out of your home or office Internet setup, consider these steps:
For most households, having both a modem and a router is ideal for a fast, secure, and versatile home Internet. Ready to upgrade your home Internet experience? Check availability in your area to see what high-speed Internet options Optimum offers.
Yes, but only for a local network (LAN) without Internet access. A router connects devices together and allows those devices to share files and communicate on the same home network, but a router does not have access to the Internet on its own. Access to the Internet requires the router to be connected to a modem.
No, a router cannot make your connection faster beyond the speed your plan provides. A router serves to distribute bandwidth from the modem, but it cannot add bandwidth. However, a better router can improve the efficiency of dispersing the existing speed that reaches each device. The quality of your router affects range, signal strength, and its capacity to manage multiple devices.
You need to check whether the issue follows the connection. If the device plugs directly into the modem and you can't connect, the issue is either the modem or perhaps the connection via you provider. Your router is the likely culprit if wired devices are ok but your WiFi devices don't sync to the Internet. Restart the modem first to try to isolate the issue.
Your provider will manage the installation and any issues with the modem and router if you rent equipment from them. However, you end up paying a fee throughout the course of your contract with them (unless you cancel and/or switch providers). Buying your own equipment allows you to take control of your network and mitigate monthly costs.
No, a Wi-Fi extender allows the WiFi signal to reach other areas where the WiFi might not easily reach. The router creates the network, and you need a router in order to use an extender.