Data is transmitted from one point to another point by means of electrical signals that may be in digital and analog form. So one should know the fundamental difference between analog and digital signals. In analog signal the transmission power varies over a continuous range with respect to sound, light and radio waves. On the other hand a digital signal may assume only discrete set of values within a given range. Examples are computer and computer related equipment. Analog signal is measured in Volts and its frequency in Hertz (Hz). A digital signal is a sequence of voltage represented in binary form. When digital data are to be sent over an analog form the digital signal must be converted to analog form. So the technique by which a digital signal is converted to analog form is known as modulation. And the reverse process, that is the conversion of analog signal to its digital form, is known as demodulation. The device, which converts digital signal into analog, and the reverse, is known as modem.