Project PDA

Having most of the modulation functions delegated to software does serve to provide the advantage of easier upgradability to newer modem standards. However, this is hardly an advantage as of 2005, with the latest V.92 56K protocol practically bearing the maximum achievable performance for a normal PSTN modem and telephone line and no significant plans future improvements/advancements seeming possible. Nevertheless this is not yet the case with the more recent software-based DSL modems, whose easy upgradeability can still be an advantage, DSL being a younger technology. This doesn't mean however that softmodems can be "upgraded" to support DSL, since DSL uses frequencies beyond the 300-3400 Hz telephone band where the hardware part of softmodems is designed to operate.

More commonly however, softmodem drivers are usually enhanced in regard to their performance and to eliminate possible software bugs.

A more practical advantage of softmodems is given by the considerable reductions in production costs, component count, size, weight and power requirements compared to a "true" hardware modem, whether external or internal, to the point that most portable computer systems' (including high-end laptops and PDAs) integrated modems are softmodems, due to the single-chip design of most softmodems.

Because they do so little by themselves, a computer program could use a Softmodem as something other than a modem; for example, it could emulate an answering machine or a signal generator.