Modems convert digital data from computers into analog signals that can be transmitted over telephone lines, and vice versa. There are different types of modems including internal, external, and PC card modems. Modems work by modulating digital signals from computers into audible tones and demodulating the tones back into digital signals. Common modulation techniques include frequency-shift keying (FSK), phase-shift keying (PSK), and quadrature amplitude modulation (QAM). Digital modulation schemes transmit more information and are more compatible with digital networks compared to analog modulation.