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The more common DSL router is a standalone device that combines the function of a DSL modem and a router, and can connect multiple computers through multiple Ethernet ports or an integral wireless access point.
Modem : However, a modem is a device that provides you access to the Internet on connecting to your Internet service provider(ISP). By connecting your modem to your router (instead of directly to a computer), all devices connected to the router can access the modem, and therefore, the Internet. The router provides a local IP address to each connected device, but they will all have the same external IP address, which is assigned by your internet service provider.