Things to know before you get a broadband internet service

What is broadband?

Broadband internet means an internet connection that is capable of transmitting large amounts of data at high speeds. There are four main forms of broadband internet service.

Cable broadband

Cable broadband services uses the hybrid fibre cable network (the same network that some pay television providers use). Generally cable broadband is only available in metropolitan areas.

ADSL and ADSL 2+

These connections use the conventional ‘copper wire’ phone network (ADSL 2+ is capable of higher speeds than ADSL).

Wireless broadband

The most common type of wireless broadband service—mobile wireless—uses the mobile phone network and can be accessed by ‘smart phones’ or personal computers equipped with a special receiver.

Some providers use technology called Wi-Max, which uses a specialised wireless internet network.

See the section on mobile wireless broadband for more detailed information.

Satellite broadband

This uses satellite technology to transmit a broadband signal to and from your home. Satellite broadband is generally used in rural or remote areas where there is no access to other types of broadband.

Know your limit

Internet plans usually include a monthly data allowance measured in megabytes (Mb) or gigabytes (Gb).

Before you sign up to an internet plan, it’s important check with the internet provider what happens if you use up your allowance.

Some internet providers may simply slow down your connection for the rest of the month (called ‘throttling’ or ‘shaping’).

However, others may charge you for any extra data you download or upload, which can quickly add up. For instance, if any data you use over your limit costs $2.00 per megabyte, downloading a single 4 Mb song could cost you $8.00.

Make sure the provider offers you a way to easily check how much of your allowance you have used. Also check that they alert you if you get close to your limit.

How much data do I need?

The amount of data you need depends on how you want to use the internet.

Some types of files or features use a lot of data. These include:

• downloading music, photos, movies and software
• software that automatically updates itself
• streaming video (such as YouTube)
• playing online games
• sending emails with large files attached (such as video, music or picture files)
• uploading—some internet plans count uploading files towards your total data use, such as loading photos and videos onto your social networking homepage.

If you plan to regularly do any of these things, a larger data allowance will suit you better. Because they generally provide more consistent high speeds, cable or ADSL broadband may be more suitable for very high data users, such as online gaming or watching streaming video.

If you mainly browse the web and send emails, a smaller allowance may be enough.

For help choosing a plan based on your likely level of use, visit the Department of Broadband, Communication and the Digital Economy website.

How fast is it?

Internet providers sometimes claim their services have a ‘peak speed’ or ‘maximum speed’, or that you’ll receive ‘up to’ a certain speed—for example, ‘speeds up to 10Mbps’ (megabits per second).

Be aware that in many cases this speed will be quite different from the actual speed you get at home. This is because a number of factors affect speed, including:

• your distance from the nearest phone exchange (in the case of ADSL or ADSL 2+)
• your distance from the nearest phone tower (in the case of mobile wireless broadband)
• the number of people using the network—your connection will be slower at busier times.

Understand the jargon

Naked broadband

Naked broadband is a type of ADSL or ADSL 2+ plan where you can connect to the internet but you don’t have to pay a monthly ‘line rental’ charge to keep the copper phone line connected to your home or business.

This means that you will not have a home phone connection unless you get a VoIP phone service.

See the internet phone service section below for more information on VoIP phones.

Bundling your phone and internet services

Many communications companies offer you deals and discounts if you sign up to more than one of their services. For example, you may be offered a discount on your home phone account if you agree to use the same company for your internet connection. This is known as 'bundling'.

Before signing up for a bundled service, there are few issues you should consider:

• Will you save money? Bundled packages can be difficult to compare, but checking your recent bills to establish your typical monthly costs and usage patterns can be a good starting point.
• What time commitment suits you? Many bundled arrangements lock you into a long term contract, and you may have to pay a penalty if you want to leave early.
• Are there hidden costs? Does the bundled package have extra services charges, more expensive local calls, or fees for exceeding your download limit?
• If you cancel an existing contract to switch providers, you may have to pay a fee.

Signing a contract—you have responsibilities, too

When you sign an internet contract, you are entering a legal agreement to pay your monthly charges for the length of the contract.

Depending on the terms and conditions of the contract you have signed, you may have to pay a penalty if you decide to change your plan or leave part way through the contract.