[Dave Farquhar] takes a walk down memory lane about the Commodore 1600 VICModem , perhaps the first phone modem to sell for less than $100. Commodore, of course, was famous for making cheaper computers like the VIC20, the Commodore 64, and lower-cost peripherals like disk drives. But how did they hit the $100 price point with the modem when competing 300 baud modems sold for at least twice that, and a 1200 baud unit would set you back at least $600?

First, Commodore didn’t handle the design themselves. Instead, they outsourced to Anchor Automation, a well-known modem manufacturer. It used a Motorola MC14412 modem on a chip, along with six other chips. The chip could, in theory, do 600 baud, but the modem was rated for 300.…