Consumer

Good Connections

_{Graeme Samuel | JUNE / JULY 2010}

The next step after buying a computer is getting connected to the World Wide Web. But where to start? Here are the basics on internet service providers.

Choosing an internet service provider (ISP) can be a complex task. There are over 800 ISPs operating in Australia and each of these providers offer a range of plans, packages and products.

While choice and competition in the market can bring many benefits for consumers it can also make the task of choosing an ISP a challenging one.

A good way to tackle this task is to spend some time identifying what your internet needs are. You should consider what infrastructure or connection is available in your home, what you mostly use the internet for and what other services you need.

What kind of connection is available to you?

Begin first with the connection to your home as this will determine what type of service you can receive. All Australian homes with a phone line are serviced by the copper wire network and can access the internet using Asymmetric Digital Subscriber Line technology which is known as ADSL or ADLS 2+.

If you want to access the internet this way but don’t wish to have a home phone – perhaps because you make all phone calls from a mobile – you can use a service called Naked ADSL.

Many homes, particularly in metropolitan areas, have fibre cables installed. This is the network that most pay television services use to broadcast their programmes. Internet services delivered over this technology are known as Cable Broadband. You do not need to have a home phone to access this network

The other main type of technology that can be used to access the internet is Wireless Broadband which uses the mobile phone network. As long as your computer, laptop or ‘smart’ mobile phone is equipped with a receiver it is possible to use this network. Not all areas have reliable Wireless Broadband coverage and it is most prevalent in metropolitan and regional centres.

Finally there is also Satellite Broadband which, as the name suggests, 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.

What do you use the internet for?

All the methods of delivery described above carry data to your home or work. What is important to consider – and what will help to decide what product you need – is the size of the data you are downloading (receiving) or uploading (sending).

Internet plans usually include a monthly data allowance measured in megabytes (mb) or gigabytes (Gb). Before you sign up for 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 use, 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’ve used. Also check that they alert you if you get close to your limit.

Data that is large in size includes:

• downloading music, photos, movies and software
• software that automatically updates itself
• streaming video (such as YouTube)
• playing on-line 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 – for example, 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. If you mainly browse the web and send text emails, a smaller allowance may be enough.

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

‘Bundled’ packages

Many ISPs 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 you should go through your bills for phone and internet use to see if a ‘bundled’ offer is actually cheaper. You should also be mindful of the length of the contract and if you have to pay a penalty fee if you want to cease the service.

Also be aware of all other costs. For example: charges for extra services, more expensive local calls or fees for exceeding your download limit.

What to do if you have a problem with an ISP?

It is an offence for any business to mislead consumers, and we may be able to investigate. If you think you were given misleading information about a service, including in an advertisement or by a person, you can contact the ACCC on 1300 302 502 or visit our website.

If you're not happy with resolution offered by the service provider, you can contact the Telecommunications Industry Ombudsman (TIO). The TIO is a free and independent service for residential customers and small business in Australia that can help you resolve disputes with broadband providers.