Well you have to tell the modem how to send data to the wire, I take it you are talking about an analoge modem (ISDN Dslam ATM all work differently)...
If you are dialing up to another modem for both modems to communicate they have to speak the same lanagauge, per say... For example the baud rate has to be the same, the control protocol has to be the same the IP encapsulation has to be the same.. Modems only really deal with layer 1 and layer 2 in networking speak layer 3 and above would be handled by your PC... I could go on but Id bore you