diff --git a/esphome/components/modem/__init__.py b/esphome/components/modem/__init__.py
index ee47af3477..ab8a3272fd 100644
--- a/esphome/components/modem/__init__.py
+++ b/esphome/components/modem/__init__.py
@@ -1,23 +1,23 @@
 import logging
 
+from esphome import automation, pins
+import esphome.codegen as cg
+from esphome.components.esp32 import add_idf_component, add_idf_sdkconfig_option
+import esphome.config_validation as cv
 from esphome.const import (
+    CONF_ENABLE_ON_BOOT,
     CONF_ID,
-    CONF_USE_ADDRESS,
-    CONF_TX_PIN,
-    CONF_RX_PIN,
-    CONF_USERNAME,
-    CONF_PASSWORD,
     CONF_MODEL,
-    CONF_TRIGGER_ID,
     CONF_ON_CONNECT,
     CONF_ON_DISCONNECT,
-    CONF_ENABLE_ON_BOOT,
+    CONF_PASSWORD,
+    CONF_RX_PIN,
+    CONF_TRIGGER_ID,
+    CONF_TX_PIN,
+    CONF_USE_ADDRESS,
+    CONF_USERNAME,
 )
-import esphome.codegen as cg
-import esphome.config_validation as cv
 from esphome.core import coroutine_with_priority
-from esphome.components.esp32 import add_idf_component, add_idf_sdkconfig_option
-from esphome import pins, automation
 
 _LOGGER = logging.getLogger(__name__)
 
@@ -25,7 +25,7 @@ CODEOWNERS = ["@oarcher"]
 DEPENDENCIES = ["esp32"]
 AUTO_LOAD = ["network"]
 # following should be removed if conflicts are resolved (so we can have a wifi ap using modem)
-CONFLICTS_WITH = ["wifi", "captive_portal", "ethernet"]
+CONFLICTS_WITH = ["captive_portal", "ethernet"]
 
 CONF_PIN_CODE = "pin_code"
 CONF_APN = "apn"
@@ -131,7 +131,6 @@ async def to_code(config):
         path="components/esp_modem",
     )
 
-    add_idf_sdkconfig_option("CONFIG_LWIP_DHCPS", False)
     add_idf_sdkconfig_option("CONFIG_PPP", True)
     add_idf_sdkconfig_option("CONFIG_LWIP_PPP_SUPPORT", True)
     add_idf_sdkconfig_option("CONFIG_PPP_PAP_SUPPORT", True)
diff --git a/esphome/components/modem/modem_component.cpp b/esphome/components/modem/modem_component.cpp
index 91a3ed635e..66ea110140 100644
--- a/esphome/components/modem/modem_component.cpp
+++ b/esphome/components/modem/modem_component.cpp
@@ -21,7 +21,7 @@
 #include <iostream>
 
 #ifndef USE_MODEM_MODEL
-#define USE_MODEM_MODEL UNKNOWN
+#define USE_MODEM_MODEL "UNKNOWN"
 #endif
 
 #define ESPHL_ERROR_CHECK(err, message) \
@@ -36,10 +36,10 @@
     ESP_LOGE(TAG, message ": %s", command_result_to_string(err).c_str()); \
   }
 
-static const size_t CONFIG_MODEM_UART_RX_BUFFER_SIZE = 2048;
-static const size_t CONFIG_MODEM_UART_TX_BUFFER_SIZE = 1024;
+static const size_t CONFIG_MODEM_UART_RX_BUFFER_SIZE = 32768;
+static const size_t CONFIG_MODEM_UART_TX_BUFFER_SIZE = 32768;
 static const uint8_t CONFIG_MODEM_UART_EVENT_QUEUE_SIZE = 30;
-static const size_t CONFIG_MODEM_UART_EVENT_TASK_STACK_SIZE = 2048;
+static const size_t CONFIG_MODEM_UART_EVENT_TASK_STACK_SIZE = 32768;
 static const uint8_t CONFIG_MODEM_UART_EVENT_TASK_PRIORITY = 5;
 
 namespace esphome {
@@ -56,7 +56,7 @@ ModemComponent::ModemComponent() {
 
 void ModemComponent::dump_config() { this->dump_connect_params_(); }
 
-float ModemComponent::get_setup_priority() const { return setup_priority::WIFI; }  // FIXME AFTER_WIFI
+float ModemComponent::get_setup_priority() const { return setup_priority::WIFI + 1; }  // just before WIFI
 
 bool ModemComponent::can_proceed() { return this->is_connected(); }
 
@@ -406,7 +406,7 @@ void ModemComponent::loop() {
             // assert(this->dce->set_mode(modem_mode::COMMAND_MODE)); // OK on 7600, nok on 7670...
             this->dce->set_mode(modem_mode::COMMAND_MODE);
           }
-          delay(500);
+          delay(200);  // NOLINT
           ESP_LOGD(TAG, "Hanging up connection after %.1fmin", float(this->connect_begin_) / (1000 * 60));
           if (this->dce->hang_up() != command_result::OK) {
             ESP_LOGW(TAG, "Unable to hang up modem. Trying to continue anyway.");