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Data terminal equipment (DTE) is an end instrument that converts user information into signals or reconverts received signals. It is also called data processing terminal equipment. These can also be called tail circuits. A DTE device communicates with the data circuit-terminating equipment (DCE). The DTE/DCE classification was introduced by IBM.
A DTE is the functional unit of a data station (station, terminal) that serves as a data source or a data sink and provides for the data communication control function to be performed in accordance with the link protocol.
Usually, the DTE device is the terminal (or a computer emulating a terminal), and the DCE is a modem or another carrier-owned device. The data terminal equipment may be a single piece of equipment or an interconnected subsystem of multiple pieces of equipment that perform all the required functions necessary to permit users to communicate. A user interacts with the DTE (e.g. through a human-machine interface), or the DTE may be the user.