Which one among the following statements about ‘modem’ is correct?

A modem, short for modulator-demodulator, is a hardware networking device primarily used to convert data between analog and digital formats. Computers process information in digital form, while many transmission mediums, such as traditional telephone lines (POTS), carry signals in analog form. The modulation process converts digital signals from a device into analog signals for transmission, while demodulation converts incoming analog signals back into digital data for the computer to understand [1]. Unlike software or operating systems, a modem is a physical hardware component. It does not function as a voltage stabilizer, which is a separate electrical device used to maintain constant voltage levels. Modern high-performance modems utilize digital signal processing to achieve high data transfer rates over various networks, including fiber optic and copper systems.

Sources

1. [1] FUNDAMENTALS OF HUMAN GEOGRAPHY, CLASS XII (NCERT 2025 ed.) > Chapter 7: Transport and Communication > COMMUNICATIONS > p. 68