A data circuit-terminating equipment (DCE) is a device that sits between the data terminal equipment (DTE) and a data transmission circuit.

It is also called data communication(s) equipment and data carrier equipment. [citation needed] Usually, the DTE device is the terminal (or computer), and the DCE is a modem.

DTE-Data Terminal Equipment
• The equipment which terminates flow of information in any communication network is referred as DTE (Data Terminal Equipment).
• These equipments are located inside or near customer premises.
• These are purchased or owned by customers utilizing service.
• EXAMPLEs: Terminals, computers, laptops, routers, bridges etc.


DCE-Data Circuit Terminating Equipment
• The equipment which transport information over communication medium is referred as DCE (Data Circuit Terminating Equipment).
• These equipments are located in between DTE and communication medium (i.e. fiber cable, twisted pair).
• It takes care providing functions such as coding, clocking etc. for the information to be transmitted and received.
• It is also known by other names such as "Data Carrier Equipment" and "Data Carrier Equipment".
• EXAMPLES: Modem, Switch etc.


the Difference Between the DTE and DCE Devices Are given below


DCE DTE
Data Communication Equipment Data Termination Equipment

Generates clock (i.e. as per speed) Accepts clock

DCE
Example#1 (In leased line setup)
V.35 and G.703 modem & exchange (modem & MUX) acts as DCE Example#1 (In leased line setup) Router acts as DTE

DTE

Example#2 (In dial up setup), dialup modem acts as DCE
Example#2 (In dial up setup) Computer acts as DTE