History of Modems Timeline

(1940s–Present)

The history of modems traces the evolution of devices that convert digital data into signals for transmission and back again, transforming internet access from slow dial-up connections to today’s high-speed broadband networks. More Less

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Military and telephone infrastructure

SIGSALY introduces digital voice encryption

1941

The Allies developed SIGSALY, a voice-encryption system that used a vocoder to digitize speech, encrypted it with a one-time pad, and encoded the resulting digital data as tones using frequency-shift keying. Its techniques demonstrated important principles later used in communications and modem technology.

Image source: SIGSALY

SAGE modem production begins

1958

Mass production of telephone-line modems began in the United States as part of the SAGE air-defense system. The modems connected terminals at airbases, radar sites, and command centers with SAGE director centers across the United States and Canada.

Bell 101 becomes commercially available

1959

The modem technology developed for SAGE was made commercially available as the Bell 101. It provided data transmission at 110 bit/s and helped establish the first widely recognized commercial telephone modem standard.

Image source: Bell 101

Automatic calling units become available

1964

Bell provided automatic calling units that connected to a second serial port on a host computer. They could open the telephone line, dial a number, verify that the remote system had connected, and then transfer control to the modem.

Image source: Modem

Carterfone decision permits attached devices

1968

The Carterfone decision permitted customers to attach devices directly to telephone lines, provided the equipment met stringent Bell-defined requirements designed to prevent interference with the telephone network. The ruling helped open the way for independently manufactured communications equipment.

Image source: Carterfone

DAAs become mandatory for modem connections

1969 - 1975

Data access arrangements were mandatory from 1969 through 1975 for connecting third-party equipment to telephone networks. The requirement reflected Bell System rules governing electrical access to the public telephone infrastructure.

Image source: Data access arrangement

FCC Part 68 permits integrated third-party protection

1975

New FCC Part 68 rules allowed telephone-connected devices to operate without a Bell-provided data access arrangement, as long as equivalent protective circuitry was included in the third-party device. This reduced barriers for modem manufacturers.

Modem standards and innovation

Bell 103A standard introduced

1962

AT&T introduced the Bell 103A standard, a major early modem standard that enabled data communication over ordinary telephone lines. Its frequency-shift keying operation became influential in early computer networking.

Image source: Bell 103

Early modems use FSK modulation

1964

The first models produced in 1964 used frequency-shift keying modulation, following the approach used by early computer modems. FSK represented digital information through shifts between audio frequencies carried over telephone circuits.

Image source: Frequency-shift keying

Vadic VA3400 reaches 1,200 bit/s

1973

In early 1973, Vadic introduced the VA3400, which provided full-duplex communication at 1,200 bit/s over a normal telephone line. It offered a faster alternative to earlier low-speed modem standards.

Image source: Star Trek: Picard season 3

AT&T introduces the 212A modem

Nov 1976

AT&T introduced the 212A modem in November 1976. Similar in design to competing 1,200-bit/s equipment, it used a lower frequency set for transmission and became an important standard for dial-up communications.

Image source: Modem

Vadic introduces the VA3467 triple modem

1977

Vadic responded with the VA3467, an answer-only modem aimed at computer-center operators. It supported Vadic's 1,200-bit/s mode, AT&T's 212A mode, and Bell 103A operation, allowing one device to work with several established systems.

V.22bis establishes 2,400-bit/s transmission

1984

The V.22bis standard was created in 1984. It provided 2,400-bit/s communication and followed the general concept of the 1,200-bit/s Bell 212 system, offering a substantial speed increase for dial-up users.

V.32bis enters the market at $399

Jan 1992

A new V.32bis modem was introduced in January 1992 at $399, equivalent to $1,331 in 2025. It cost about half as much as the slower V.32 modems already available, accelerating adoption of faster dial-up connections.

Digicom introduces the Connection 96 Plus

1993

Digicom introduced the Connection 96 Plus in 1993. It replaced discrete and custom components with a general-purpose digital signal processor that could be reprogrammed, allowing the modem to be upgraded to support newer standards.

Image source: Disclosure (1994 film)

Digicom introduces the Connection 96 Plus

Flexible modem components prepare for V.34

1994

To ensure compatibility with V.34 modems after the standard was ratified in 1994, manufacturers adopted more flexible designs. These generally used a digital signal processor and microcontroller instead of purpose-built application-specific modem chips.

K56Flex and competing 56k technologies reach the market

Feb 1997

Two competing 56k modem technologies reached the market around February 1997. Early reviews reported problems with K56Flex equipment, but within six months both technologies performed comparably, with results depending largely on local telephone connection characteristics.

ITU announces draft V.90 standard

Feb 1998

In February 1998, the International Telecommunication Union announced a draft V.90 standard for 56 kbit/s modems. The proposal had strong industry support and aimed to resolve the incompatibility between competing early 56k technologies.

V.90 standard is approved

Sep 1998

The ITU approved the V.90 standard in September 1998. It was widely adopted by Internet service providers and consumers, consolidating the market around a common 56 kbit/s dial-up technology.

V.92 standard increases upload speeds

Nov 2000

The ITU approved the V.92 standard in November 2000. Using digital pulse-code modulation technology, it increased maximum upstream speed to 48 kbit/s while retaining compatibility with the final generation of high-speed dial-up service.

Image source: ITU-T V.92

Consumer modem expansion

Hayes Smartmodem is introduced

1981

Hayes introduced the Smartmodem in 1981. Its command set and built-in automation for dialing, answering, and controlling calls made modem operation substantially easier for personal computers and helped establish the basis for later Hayes-compatible devices.

Image source: Hayes Microcomputer Products

Commodore VicModem sells below $100

1982

Commodore's VicModem for the VIC-20 became the first modem sold for under $100, equivalent to $334 in 2025. It was also the first modem to sell one million units, bringing dial-up connectivity to a mass personal-computing market.

Image source: VIC-20

Popcom X100 brings modem hardware into a compact case

1983

Prentice Communication introduced the Popcom X100, a Hayes-compatible modem built into an extremely compact case with an internal power supply. It was designed to be plugged into a wall indefinitely rather than operated as a conventional desktop peripheral.

Image source: Inter-process communication

V.32bis triggers a modem price war

1992

The lower-priced V.32bis led to a price war. By the end of 1992, V.32 had failed to become widely established, while V.32bis modems were broadly available for about $250, equivalent to $834 in 2025.

Most US households with computers remain offline

1994

A 1994 Software Publishers Association study found that 60% of computers in United States households had a modem, but only 7% of households were actually going online. The figures showed that modem ownership had expanded faster than Internet use.

Image source: Internet access

Early 56k modems sell for about $200

1997

Early retail 56k modems cost about $200, equivalent to $667 in 2025. This was roughly twice the price of standard 33k modems, which sold for about $100, equivalent to $334 in 2025.

Half of ISPs offer 56k support

Oct 1997

By October 1997, about half of all Internet service providers offered 56k modem support. ISP compatibility was essential because the technology relied on a largely digital connection from the provider to the telephone network.

Image source: Internet service provider

Dial-up decline and mobile transition

Dial-up reaches 74% of US residential connections

2000

In 2000, dial-up Internet connections accounted for 74% of all residential Internet connections in the United States. This represented the high point of dial-up's dominance before broadband adoption accelerated.

Dial-up falls to 60% in the United States

2003

By 2003, dial-up modem use in the United States had declined to 60%. Broadband connections were increasingly replacing telephone-based access because they provided higher speeds and did not tie up the voice telephone line.

Dial-up falls to 36% in the United States

2006

Dial-up use in the United States stood at 36% in 2006. A CEA study that year found that dial-up Internet access was declining as cable, DSL, and other broadband services expanded.

USB modem shipments surpass embedded modules

Apr 2011

Through the end of April 2011, worldwide shipments of USB modems exceeded shipments of embedded 3G and 4G modules by a three-to-one ratio. USB devices were attractive partly because they could be easily discarded or replaced.

Image source: Mobile broadband modem

AOL still serves millions of dial-up users

2012

In its 2012 annual report, AOL reported collecting around $700 million in fees from approximately three million dial-up users. The figures illustrated the continued commercial importance of dial-up even after broadband had become dominant.

Image source: AOL

Embedded modems projected to approach parity

2016

As tablet sales grew and the incremental cost of adding a modem declined, embedded modems were expected to overtake separate modems. The projected ratio of embedded to separate modems was expected to reach approximately one to one by 2016.