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Today's V.42, V.42bis and V.44 standards allow the modem to transmit data faster than its basic rate would imply. For instance, a 53.3 kbit/s connection with V.44 can transmit up to 53.3*6 == 320 kbit/s using pure text. However, the compression ratio tends to vary due to noise on the line, or due to the transfer of already-compressed files (ZIP files, JPEG images, MP3 audio, MPEG video).At some points the modem will be sending compressed files at approximately 50 kbit/s, uncompressed files at 160 kbit/s, and pure text at 320 kbit/s, or any value in between.

In such situations a small amount of memory in the modem, a buffer, is used to hold the data while it is being compressed and sent across the phone line, but in order to prevent overflow of the buffer, it sometimes becomes necessary to tell the computer to pause the datastream. This is accomplished through hardware flow control using extra lines on the modem–computer connection. The computer is then set to supply the modem at some higher rate, such as 320 kbit/s, and the modem will tell the computer when to start or stop sending data.

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