A modem converts data to a signal so it can be easily sent and received over a phone line, cable, or satellite connection. For transmission over an analog telephone line—which was once the most popular way to access the internet—the modem converts data between analog and digital formats in real time for two-way network communication. In the case of the high-speed digital modems popular today, the signal is much simpler and doesn't require the analog-to-digital conversion.