Hidden Broadband Costs When Connecting A Broadband Service


When signing up to a broadband plan there are often several costs that many consumers aren’t aware of.  Installation fees will vary depending on which Australian broadband provider you sign up with so it is important to read the fine print before signing a broadband contract.

Modems and line filters

For any broadband internet connection you will need an ADSL modem. Some providers such as Telstra Bigpond or Optus will offer a modem included in a broadband plan. To receive a broadband modem for free, you will often need to sign up for a 24 or 36 month contract and this should be considered when comparing the first year costs of your broadband subscription. Compare Broadband compare first year costs from the major broadband internet providers in Australia.

When signing up to a broadband plan with other Australian providers such as Netspace or iiNet you may receive a discount on your modem depending on the length of contract you subscribe to. This can be a great way to reduce the upfront cost when getting online with an ADSL connection.

Broadband providers like TPG or Exetel  do not include a modem within their broadband contracts. You can purchase a modem from you internet provider and if you are new to broadband this is generally recommended as your broadband provider will provide full technical support on modems they have supplied. 

After signing up to an ADSL or ADSL2+ broadband plan, you will need to install a line filter on any appliances that also use your home phone line.  This will stop potential interference from the ADSL signal. Most line filter cost between $15 and $30 and can be purchased from your broadband internet provider or most electronic stores. If you have four or more appliances it is generally recommended that you have a central filter installed professionally. This can cost between $100 and $200 and is arranged through your broadband provider.

Installation fees

When you sign up to a broadband plan installation fees will apply for the connection of the service. This will generally need to be paid before y our provider connects the service. Connection fees vary between provider, TPG installation fees vary from $59.95 to $149.95 depending on the broadband service you are subscribing to and the length of the contract. If you sign up to a longer contract many broadband providers will offer free installation, however, you may still need to purchase an ADSL modem. Netspace will waive their installation fee and offer a discounted modem when you sign up to a 24 month contract.

Phone line rental

All ADSL and ADSL2+ broadband subscription will require you to maintain and active home phone line. If you don’t currently have an active home phone service, this will need to be connected before signing up to an ADSL, ADSL2+ or Naked DSL broadband plan.  Netspace, iiNet, Internode, Telstra Bigpond, iPrimus and Optus can connect your home phone for you and offer a discount for bundling a home phone and broadband service.

Many consumers don’t realise they will need an active home phone service before applying for a Naked broadband plan. Because a Naked DSL broadband plan still uses the copper wire connected to the telephone exchange, you will need an active service before apply for a Naked DSL broadband service. Once the broadband connection is established, you broadband provider will switch off the voice component on the service and you will no longer need to pay line rental.