I am in an intercom network with 2 telephones at 2 different places A and B.

If I pick up receiver at A and dial a certain number, the phone rings at B and I can speak.

I have ethernet based internet connection at place B. I would like to connect a wifi router at place A that is directly in lan in place B.

I have an adsl modem with me and am willing to procure another modem if the lan connection over telephone network is feasible.

Is it possible to establish IP(ethernet?) over telephone cable(rj11) some how?

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It depends on what the "intercom network" looks like. For something POTS or even ISDN-compatible you could use a pair of VDSL(2) modems with integrated splitters, most often called (Ethernet-over-)VDSL media converters. (thx Peter!)

These allow you to run transparent Ethernet connections over a telephone line (single pair) while simultaneously keeping the telephone function alive. The speed you can actually get depends on the quality and length of the telephone cable.

I've used those modems on occasion as stop-gap solutions quite successfully. Somewhat decent modular cable got me some 40 Mbit/s over 50 m.

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    "VDSL media converter" is the search term you need. Devices sold as "VDSL modems" are unlikely to have the needed functionality to run both ends of the link. – Peter Green Apr 29 '18 at 2:04

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