Baud Contrary to popular belief, baud is not a direct measurement of data transfer speed, but instead it measures how many electrical signals are sent per second. Baud is used to measure the rate of electrical signals, or “signaling elements,” for modems, networks, serial cables, and other data transfer mediums. Some people think that baud and bits per second are equal. For example, they’ll say a 28,800 bps modem transmits at 28,800 baud. But the fact is, most modems transmit multiple bits of data per baud, so while the the two values are related, they are typically not equal.