The most significant difference between modems for Linux isn't whether they're internal or external. They are whether they are a softmodem or a hardware modem (intermediate "controllerless" modems also exist). A Softmodem, or software modem, is a modem with minimal hardware capacities, designed to use a host computer's resources (mostly CPU power and RAM but sometimes even audio hardware) to perform most of the tasks performed by dedicated hardware in a traditional modem. All external serial modems are hardware modems. Some external USB modems may work in Linux.
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