OK it's not your fault you call it a modem. Even providers call them modems so it's a natural mistake. Even to avoid confusion, I refer to it as your DSL modem. A modem modulates and demodulates a digital signal to analog and then back to digital. A DSL "modem" is a digital signal that stays digital all the way. It gets a piggyback ride on your phone line giving you 12-15 mbps downloads and 1mbps uploads. Most of your activity is going to be downloading so it's acceptable.
DSL is faster than dialup and usually pretty reliable. Your bandwidth is not shared. The bandwidth for your DSL (digital subscriber line) is not shared with your neighbors. Some rural areas might not be able to get DSL, the cost is high ($20-30) and even some buildings with old wiring can't support the higher speed DSL. You can hook up your wireless to it which ticks phone companies off; they'd prefer to make more money on you. DSL requires more equipment. You need noise filters put on EACH line so that when you are using the Internet at the same time as the phone you don't hear strange noises. DSL may fall into oblivion as many folks are opting to do without landlines and just have cell phones.
Oh.. ps.. a DSL modem is really an endpoint. They function like a bridge or router.
To see if DSL is available in your area contact your telephone company or visit http://www.dslreports.com/
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