Which broadband plan is right for me?

(Laptop image by Svilen Mushkatov, royalty free)

UPDATE If you're switching to broadband for the first time or contemplating changing your Internet Service Provider (ISP), the range of plans on offer can be quite staggering. This guide will break down the key features you need to consider before signing on the dotted line.

Plan types

How much you'll pay for broadband used to revolve mostly around speed, but these days you've also got to take into consideration factors such as wireless coverage, data allowances, rapid transfer provisions and whether or not you're bundling in other services. Still, there are some common factors that any broadband provider should be able to supply to you for the sake of comparison.

Whether you're connecting via ADSL/ADSL2+ on your phone lines, via cable, fibre or even wirelessly, you're constrained by the speed rating of the plan you're offered. It's worth bearing in mind that ISPs typically state the maximum theoretical speed of a plan with lots of "up to" provisos chucked in to keep the lawyers at bay. At the lower speed end this is usually not much of a problem, but don't buy a high speed ADSL2+ plan and expect to get 24-megabit (Mb) speeds unless you happen to live in an exchange or ISP's headquarters.

ISPs state the speed of plans in terms of download (data coming to you) and upload (that's data you're sending out) speeds. So a 256/64Kbps plan offers a download speed of 256Kbps and an upload speed of 64Kbps. The lowest speed currently on offer is 256Kbps and is still called "broadband", although frankly it's an embarrassment in world broadband terms. We'd be happier thinking of broadband starting at 1000Kbps and better, and so should you.

What type of broadband is right for me?

ADSL
It's good because: ADSL (Asymmetric Digital Subscriber Line) is pretty ubiquitous, available through just about every ISP and with speeds from 256Kbps up to 8Mb. Regular ADSL also works at greater distances from the exchange than ADSL2+

It's bad because: there's not much pricing competition — that's the fight currently in ADSL2/Naked DSL spaces — so pricing value is relatively low, as most ISPs are just reselling Telstra's wholesale capacity.

Best for: those on limited budgets, or who need broadband for its "always on" functionality rather than data speed or high throughput.

ADSL2+
It's good because: it's faster than ADSL (up to a theoretical 24Mb), and there's competition between different providers such as Telstra, iiNet and Optus, so there's genuine bargains to be had.

It's bad because: ADSL2+ distances from exchanges are shorter than those available via ADSL, and it's just plain not available in many regional areas.

Best for: speed freaks on a budget.

"Naked" DSL
It's good because: Naked DSL merges the technology of ADSL2+ (with similar speeds) but strips out the phone line signal — hence "Naked" — which means you get the speed and price competition of ADSL2+ and you don't have to pay for line rental at all.

It's bad because: you quite literally don't have a working "phone" line. Most Naked DSL plans come with a VoIP (Voice over IP) line to "replace" this, but if your ISP connection goes down, your entire communication set-up goes down with it. Additionally, some phone-based services such as security systems don't play well with VoIP lines.

Best for: those who only use mobiles anyway and want low overall communication costs.

Cable/fibre
It's good because: it can be blindingly fast — especially fibre, where some new housing estates can offer up to 100Mb connections. It's also quite new technology, and liable to be around for some time.

It's bad because: both cable and fibre installations are at this point in time quite limited in availability, although the proposed National Broadband Network should solve this exact problem. On the cable side, limited competition between Telstra and Optus has seen plan values compare unfavourably next to Naked DSL and even most ADSL2+ plans.

Best for: those on new housing estates. Most residences that can get cable are likely to be in range of ADSL2+ services, which will generally offer better overall value at the current time.

Wireless
It's good because: wireless internet uses the mobile phone network to send data, giving you lots of movement capability, whether it's by using your mobile as a "tethered" modem, or getting a USB modem to plug into your computer.

It's bad because: as with your mobile phone, the quality of the signal can vary quite widely, making it generally less than suitable for high-speed internet activities such as gaming. Some wireless data plans can also be horrendously expensive, especially if you go over cap limits.

Best for: those renting accommodation, or those who can afford the higher wireless data rates.

What can I get for my money?

Budget plans: $30/month or less
In the ADSL/ADSL2+ space, you'll typically get lower speeds — as low as 256Kbps — and you'll generally get around 1GB of data or less. Wireless plans in this price range also typically offer around 1GB of data, but you'll pay a lot more if you go over usage, with no option to "shape" your data speeds downwards.

Mid-range plans: $30-$60
ADSL plans in this price range are typically worse value than ADSL2+ plans, and you'll typically get double or more the data on ADSL2+ if you're able to shop around for that. This also brings in lower-tier cable plans for those in cabled areas, as well as wireless data with typically 5-6GB data provisions.

High-end plans: $60+
The sky's the limit obviously, but what we're seeing more of in high-end plans is more bundling with other services — this is where Naked DSL makes its best play. Be wary of so-called "unlimited" plans — they often don't limit how much you can download, but either cap your speed (usually to just above dial-up) after a certain limit is reached, or they poll all the ISPs users and cap the highest users.

What type of broadband user am I?

Clearly, the amount you can spend will shape what kind of broadband account you can get, but it's not as simple as just plugging in as much money as you can afford and hoping for the best result. It's just as important to work out what kind of user you are, and work backwards from there to determine which services really matter to you.

If you're a:

Web surfer — go for a light (256/512Kbps) and cheap plan. The most important thing for you isn't necessarily speed, or even data usage — it's the always-on nature of broadband.

Best connection types: Naked DSL (where available) or ADSL.

VoIP user — go for a mid-range plan, preferably high speed. If your broadband's being used for lots of other things at the same time as you're making a VoIP call, you'll suffer from drop-outs and poor voice quality on a low-speed line.

Best connection types: ADSL2+ or Naked DSL

Family user — get a mid-range plan — you'll have plenty of users to satisfy — with either a capped download rate or shaped plan, so you don't suddenly get any nasty additional download bills.

Best connection types: ADSL2+, Naked DSL or capped cable.

Gamer — go for as high speed a plan as you can afford. Low speed (and high latency) will kill you in gaming a lot faster than your opponents will.

Best connection types: fibre (where available), ADSL2+. Avoid wireless.

Heavy downloader — go for a high-data plan — possibly even an "unlimited" plan. ADSL2+ is preferable, but you're better off with a slower plan with big data allowance than a plan where you'll rip through all your data in a matter of minutes.

Best connection types: ADSL2+; avoid Naked DSL if uploads are counted.

Understanding broadband technologies

ADSL — uses phone lines to deliver broadband access. ADSL tops out at 8MBps, while ADSL2 (available in limited areas) can reach 24MBps.

Cable — uses the cable infrastructure laid down for Pay TV in the early 1990s. Currently very limited areas can get cable, and speeds top out at a theoretical 17MBps.

Fibre — the new kid on the block in consumer ISP land, and currently only available in very limited form on some new housing estates. The big appeal of fibre is pure speed, with 100Mb plans currently being offered.

Satellite — uses either a combination satellite and phone line or two-way satellite for broadband access. Typically satellite isn't very fast or suitable for high bandwidth applications such as VoIP or gaming, but may be the only option for remote areas.

Wireless — typically using the same infrastructure as 3G mobile phones, although some limited regional set-ups use alternate technologies such as WiMax.

All forms of broadband will require additional equipment if you're moving up from dial-up internet. In every case you'll need a new modem — different for each type of broadband technology. If you're signing up with an ISP for a long-term contract, it's worth checking if they'll include a modem (or router) as part of the package. While these aren't terribly expensive for the most part, you may as well get the most value possible.

Bundling

Many cheap ISP plans are only offered with telephone bundling as a mandatory inclusion, while other players use bundling to improve the perceived value of their plans, with big players like Optus and Telstra bundling in Pay TV and mobile phone services into a single bill. There are savings to be made with bundling, although clearly the big telcos rather like having you as a sole customer as well. Naked DSL is almost an anti-bundling technology in that you don't pay for a phone line, but there's even a bundling aspect here, as it's generally tougher and slower to shift between Naked DSL providers when and if you do want to make a change.

Additional services

ISPs vary quite widely in terms of the additional services they'll give you as part of your broadband offering. At least one email address is a given, but family users may wish to make sure you get at least five to cover everybody. Likewise, many will offer a small amount of web hosting space, but may charge extra set-up fees if you need help configuring a web page or require additional web services for your page. Some may bundle antivirus/anti-spyware services as part of the package and all should do some form of spam filtering, although the efficiency with which they do this can vary quite widely.

Watch out!

There are also some things that ISPs don't talk about much, but are worth considering when choosing your ISP. Check the terms and conditions carefully for any additional charges, especially as they relate to charging for contract termination, receiving paper bills, excess usage fees and peak/off-peak timing and data allocation. It's also worth checking whether or not your chosen plan counts data usage against "uploaded" data — this does include any files you send, including emails. It's almost unavoidable with certain connection types such as wireless, but in the ADSL/ADSL2+ space it's just poor value and easily avoided if you shop around. This leaves you with more of your data pool to use for getting files down, which is better overall value for you.