A miniaturized modem system including a modem chip on a board and a DAA chip on another board mounted together so that the boards face one another thereby substantially reducing the size of the system. The arrangement satisfies the requirement of the FCC for maintaining a minimum limit on spacing between the modem section and the DAA section thereby avoiding inadvertently applying voltage surges to the phone line. The modem system is mounted directly on a housing that is a receptacle for a telephone jack thereby further substantially reducing the size of the modem system.