Modems allow computers to transfer data over telephone or cable lines by converting digital signals to analog and vice versa. They come in internal and external varieties and support different transmission speeds like 56kbps for X2 modems and 64kbps for ISDN. Common modem types are X2, V.90, ISDN, DSL, and cable which use different connection technologies to transmit data at varying speeds over phone lines or cable infrastructure. Proper installation and safety precautions should be followed when installing a modem.