• A built-in modem won't take up as much room as an external modem.modem image by Henryk Olszewski from Fotolia.com
  
  

Internal Modems

• Internal modems are usually built onto a computer's motherboard. They use a phone connection, referred to as dial-up, to access the Internet. Dial-up access through an internal modem costs less than broadband access via an external modem, but the connection is far slower. Repairing or replacing an internal modem requires opening the computer, which can be dangerous.
  
  

External Modems

• Modem technology began with models that sat outside the computer. Modern external modems are much more practical than internal modems, with a broadband setup able to transmit data hundreds of times faster than a dial-up connection. Broadband connection is more expensive, but has come down in price since the release of the technology.
  
  

Bottom Line

• Internal modems have become a thing of the past in the computer world. Machines still come equipped with dial-up access, but most users prefer to spend the extra few dollars a month and opt for the faster connection provided through the external modem.