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Yes, modem is a Scrabble word!
...and is worth 10 points in Scrabble, and 12 points in Words with Friends
1. (from a combination of MOdulate and DEModulate) electronic equipment consisting of a device used to connect computers by a telephone line
What Scrabble words can I make with the letters in modem?
4 Letter Words
3 Letter Words
2 Letter Words