Source : Free On-Line Dictionary of Computing

Data Terminal Equipment
     
         (DTE) A device which acts as the
        source and/or destination of data and which controls the
        communication channel.  DTE includes terminals, computers,
        {protocol converters}, and {multiplexors}.
     
        DTE is usually connected via an {EIA-232} {serial line} to
        {Data Communication Equipment} (DCE), typically a {modem}.  It
        is necessary to distinguish these two types of device because
        their connectors must be wired differently if a
        "straight-through" cable (pin 1 to pin 1, pin 2 to pin 2 etc.)
        is to be used.  DTE should have a male connector and should
        transmit on pin three and receive on pin two.  It is a curious
        fact that many {modems} are actually "DTE" according to the
        original standard.
     
        (1995-02-28)