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modem
CIDE DICTIONARY
modem, n. [by shortening from modulator-demodulator.].
An electronic device that converts electronic signals into sound waves, and sound waves into electronic signals, used to transmit information between computers by the use of ordinary telephone lines; also called modulator-demodulator ; as, the latest modems can transmit data at 56,000 baud over a clear telephone line. The speed of transmission of information by a modem is usually measured in units of baud, equivalent to bits per second. [PJC]
OXFORD DICTIONARY
modem, n. a combined device for modulation and demodulation, e.g. between a computer and a telephone line.
Etymology
modulator + demodulator
For further exploring for "modem" in Webster Dictionary Online