The invention relates to apparatus and methods for a television terminal with a modem. The television terminal may be a set top terminal for use with a cable television program delivery system. The modem may be integral to the terminal or may be provided as a hardware upgrade unit or expansion card connected to the terminal to modularly enhance the functionality of the terminal. The modem enables the terminal to communicate with interactive services and on-line databases, including services and databases outside of the television program delivery system. The services and databases may provide home shopping, airline reservations, news, financial information, classified advertisements, home banking, and/or interactive teletext.