Potential disadvantages to look for when connecting a Broadband service

Broadband internet is a highly competitive industry in Australia and there are a large number of advertisements currently offering cheap connections and discounts to new broadband subscribers. It is important to understand all the facts about broadband and the deal you are considering before signing up. If you are unsure about a broadband plan, you can always call Compare Broadband and our staff can help you find the best deal available for your needs.

Extra usage charge

It is important to understand whether the broadband internet plan you are signing up for has extra charges for excess usage beyond your monthly download limit. Many providers will simply slow down your internet connection once you reach your monthly limit (speed shaping), while others will charge you a fee for any excess data usage.

It is important to be aware of these extra costs to avoid receiving unexpected extra costs at the end of the month. Telstra Bigpond will offer speed shaping on some ADSL broadband plans, but will also charge an excess usage charge on others. For example on all Telstra Bigpond Liberty broadband plans, speeds are shaped (slowed down) once you reach your monthly data limits. On all other Telstra Bigpond ADSL and ADSL2+ broadband plans there is an excess usage charge of 15 cents per MB of excess data. You will need to be aware of this extra charge and monitor your monthly download usage to avoid extra costs.

Introductory offers

Some Australian broadband providers will offer introductory offers to save you money when signing up to a new broadband connection. For example, Telstra Bigpond currently offers a discount price on first year costs of your broadband connection when signing up to a 36-month contract. It is important to understand what your broadband costs will be after the initial discounted period.

Free modems may be a great incentive to sign up with a broadband provider, but you may find these deals include higher monthly broadband costs.

Contract periods

When signing up to a broadband internet connection with an Australian internet service provider, the length of your contract can make a difference to your costs over the contract period. If you sign up for a 24-month contract many providers such as Netspace and iiNet will offer a discount on your modem costs.

If you are tied in to a contract however, you will incur fees if you have to move house or break the contract before it has finished. It is important to consider whether any initial discount will pay off over the contract term if you incur relocation fees or an early disconnection fee. In a highly competitive broadband market, chances are there will be new and better deals released all the time and you will need to make sure you are  getting the best possible deal before signing up to a broadband plan. It is easy to compare all the major Australian broadband internet providers side by side on CompareBroadband.com.au and make sure you are getting the best deal for your needs.