Engadget explains modem, router and gateway differences and the case for buying your own router

Engadget said most internet connections depend on a modem, short for modulator-demodulator, which translates signals from a cable or phone line into digital data devices can use and sends data back. A pure fiber connection can replace the modem with an optical network terminal, which serves the same practical function. A router directs modem data to and from individual devices over Wi-Fi or Ethernet, can move local traffic such as video from a Plex server to a TV, and may act as a smart home hub for Matter or Thread devices. Routers also use firewalls and tools such as user profiles and guest networks to defend and manage the network.

Within home networking, a gateway usually combines a modem and router in one device. Engadget said the main advantage is simplicity, and ISPs frequently include a gateway in monthly plans, increasingly at no extra charge. Retail gateways are less common and are often aimed at businesses seeking advanced control over data, the report said. Combination gateways exist, but separate modem and router units are usually more advantageous, according to Engadget.

The explainer said ISP equipment, whether a gateway or separate modem and router, is often a cheap, lowest-common-denominator setup for a modern home. It may use Wi-Fi 6 and is almost certainly non-mesh. Engadget said Wi-Fi 6 remains viable in many cases, but Wi-Fi 6E and Wi-Fi 7 add a faster 6GHz band alongside 2.4GHz and 5GHz, and mesh systems can be necessary to prevent dead zones and maintain consistent speeds.

Engadget cited AT&T's All-Fi Pro as an example of ISP upgrade pricing. The service includes Wi-Fi 7, mesh extenders and equipment upgrades every 36 months, and costs $25 a month on top of an existing plan for customers not on an ultra-fast plan. After a year, that amounts to an additional $300, the report said. For less than two years of rental cost, a customer could own a mesh system and bring it to another ISP, the explainer said.

To use a personal router with ISP equipment, Engadget said customers need to put the supplied equipment into bridge mode. The report said default routers and gateways can lack features, but speed and coverage matter most. With stock equipment, it said, users do not come close to the potential of the latest phones and computers, let alone uses such as home servers or smart home accessories.