diff --git a/esp_modem/README.md b/esp_modem/README.md
index 4a155e995..38fb22cb5 100644
--- a/esp_modem/README.md
+++ b/esp_modem/README.md
@@ -22,6 +22,7 @@ The modem device is modeled with a DCE (Data Communication Equipment) object, wh
    +------+ 
 ```
 
+## Modem components
 ### DCE
 
 This is the basic operational unit of the esp_modem component, abstracting a specific module in software,
@@ -33,3 +34,46 @@ which is basically configured by
 After the object is created, the application interaction with the DCE is in
 * issuing specific commands to the modem
 * switching between data and command mode
+
+### DTE
+Is an abstraction of the connected interface. Current implementation supports only UART
+
+### PPP
+
+Is used to connect the specific network interface to the modem data mode. Currently implementation supports only PPPoS protocol.
+
+### Module
+
+Abstraction of the specific modem device. Currently the component supports SIM800, BG96, SIM7600.
+
+## Use cases
+
+Users could interact with the esp-modem using the DCE's interface, to basically
+* Switch between command and data mode to connect to the internet via cellular network.
+* Send various commands to the device (e.g. send SMS)
+
+The applications typically register handlers for network events to receive notification on the network availability and 
+IP address changes.
+
+Common use cases of the esp-modem are also listed as the examples:
+* `examples/pppos_client` -- simple client which reads some module properties and switches to the data mode to connect to a public mqtt broker.
+* `examples/modem_console` -- is an example to exercise all possible modules commands in a console application.
+* `examples/ap_to_pppos` -- this example focuses on the network connectivity of the esp-modem and provides a WiFi AP
+  that forwards packets (and uses NAT) to and from the PPPoS connection.
+
+## Extensibility
+
+### CMUX
+
+Implementation of virtual terminals is an experimental feature, which allows users to also issue commands in the data mode,
+after creating multiple virtual terminals, designating some of them solely to the data mode, while other to command mode.
+
+### DTE's
+
+Currently we support only UART, but modern modules support other communication interfaces, such as USB, SPI.
+
+### Other devices
+
+Adding a new device is a must-have requirement for the esp-component. Different modules support different commands,
+or some commands might have a different implementation. Adding a new device means to provide a new implementation
+as a class derived from `GenericModule`, where we could add new commands or modify the existing ones.