I fixed your post to use quotes. Easier to read that way.
What you've been told at DSLreports is pretty much the same thing that's been said here:
- AT&T is full of crap. You can use whatever router you want.
- The modem you have can only connect to one device. Right now, you're connecting to one computer. If you add a router, you'd connect to one router. (That router can then connect to multiple computers.)
- You can't use a switch. As per #2, the modem only issues an IP to one device at a time. Each computer needs an IP, and only a router can generate IPs. Switches cannot.
If you're gung-ho on buying something expensive, that Actiontec might work. I don't have AT&T, so I don't know if it works with AT&T's transmission type. It's more than twice the cost of simply adding a router, however. I don't see the point in replacing the modem. The modem works.
I don't have lots of details on iPhones, as I don't have one. You pay for separate internet service for iPhone (via AT&T, unless you jailbreaked it), so it connects over cellular networks. It doesn't need wifi routers like a laptop, no.
ISPs only give you a "live wire" to the Internet. They're not responsible for how you wire your house. You get a modem to receive the signal, and that's it. Think of this:
- The electric company sends power into your home. They don't set up the outlets in each room, or install fans and lights.
- The water company doesn't do the plumbing or add toilets and sinks.
- The cable company doesn't wire the house for TV. (Although some do offer these services for pay, or as part of an "install" service.)
- The phone company doesn't install phone jacks in the house. (Although some do offer these services for pay, or as part of an "install" service.)
Internal setup to use these services is all on you.
The only think really holding you back is your own fear. There's nothing you can buy to avoid change.
The choices are:
- Change something. The best thing to "change" is the lack of a router. Fix that by adding a $30 wireless router. Replacing the modem is somewhat pointless, and costs almost $50 more.
- Do nothing. Only one computer in the house will have Internet. Seek alternate service on the iPhone. That costs about $60 or more a month, I believe.