If you have ADSL type broadband Internet, you need one or more of these for each phone line you have ADSL installed on.
Plug your phone or phone extension into the phone socket, and the ADSL connection into the other one.
How does it work? The copper wire phone travelling from your house to the local exchange can carry much higher frequencies than your telephone's voice signal. So ADSL takes these unused high frequencies and uses them for data. However, the two sets of signals have to be split when they reach your house so that they don't interfere with each other. That's what the filter is for!
Note: Photograph for illustration purposes only.
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