What you need to know about ADSL

Getting ADSL is a big decision. There is a lot to consider. With this fact sheet, we will cover the most commonly asked questions and tackle the traps of ADSL.

What is ADSL?

ADSL is a high speed connection to the internet. The internet allows you to browse websites, send and receive email, download music/video/pictures/software and communicate with people around the world. ADSL is the most commonly used form of broadband in Australia.

What do I need to get ADSL?

You need to choose an ISP (internet service provider), get equipment and have a standard phone line. If your computer is more than a few years old, you should check to make sure it is capable of running ADSL with your preferred ISP. Your local telephone exchange needs to be able to support broadband. Most highly populated areas support broadband and Jennings Computers can do a fast, free check to determine if broadband is available in your area. If you have access to the internet, you can check for yourself at bc.whirlpool.net.au

What are the costs of ADSL?

There is an initial, one off outlay for the setup of broadband and the equipment/cabling involved. After that, there is an ongoing monthly charge for the connection. Unlike dialup internet, you do not make a phone call to connect to the internet, so there are no phone call charges.

How do I choose an ADSL “plan”?

There are many different plans to choose from when considering ADSL. Generally, they are defined by speed and the amount of downloads allocated to you. A “download” is information received by you when using the internet. All the information you get from the internet, from browsing web pages to receiving email, is a download.

Speed
When it comes to speed, there are currently three common speeds for ADSL. These are 256k/64k, 512k/128k and 1.5Mb/256k. Generally the faster the speed, the higher your monthly charge. Here is a general guideline of these speeds:

256k/64k - Great for general use, this is the speed we would recommend for the average client. If you’ve been using dialup internet, you will notice a huge difference in performance.
512k/128k - Great for power users and competing in multiplayer games. Worth considering if you’re prepared to spend a little more per month for the added speed.
1.5Mb/256k - Really great for power users/internet addicts, competing in multiplayer games and sharing a connection between multiple computers.

Downloads
Downloads are where things can get complicated, so bear with us on this. As a general rule, the more downloads included in a plan, the higher the monthly plan cost. It all comes down to download “allowances”. These are a few of the common download allowances:

You can download up to a certain amount, then your speed is slowed down.
We would generally recommend this option. You are paying for what you use and you are not paying an excess. If you find you are always using your download allowance, you can change to a plan with a higher allowance. If you’re not using as much as you anticipated, you can drop down to a cheaper plan.

You can download up to a certain amount, then you pay extra for all downloads past that point.
This option can be very expensive if you go over your limit. See “Telstra Bigpond’s Download Trap” for more information.

You can download as much as you like and the speed remains constant.
This option can be good for heavy duty users but others will find they are paying a premium for extra capacity they don’t need. The third option is also often subject to “reasonable use” or “fair go” policies, meaning if you are downloading a lot you might be refused service or slowed down. As this type of plan attracts heavy duty users, quite often the speed and the quality of the service suffers.

I have no idea what download allowance I should choose. What’s a good starting point?

There’s no simple answer to this. Many people who start out on a plan with a small allowance (under 1Gb) will upgrade to a plan with higher limits. If you underestimate your requirements, you might find you are spending a lot more than you originally budgeted for. For this reason, if you have no idea what your usage will be, I would start off on a plan in the range of 5Gb - 10Gb.

What equipment do I need?

The main piece of equipment you need is an ADSL modem/router. ADSL modem/routers connect to the phone line and then to your computer.

A Billion ADSL modem/router with a single port is a good option if you don’t plan on adding any computers to your network in the foreseeable future. It’s also the cheapest option, at just $79.

ADSL modem/routers with four ports built in are a good choice because four ports will allow you to connect up to four computers via cables. Connecting multiple computers together allows you to share the internet connection and it can also be set up to share files and printers. Even if you only have one computer, the four port option gives you the flexibility of easily adding computers in the future. If a friend drops around with a notebook, you can give them internet access and share files, even play networked games. Considering you save $20 if you go for a single port ADSL modem/router, for the relatively small increase in price we recommend the four port option. We sell the Billion four port ADSL modem/router for $109.

An alternative to a standard ADSL modem/router is a wireless ADSL modem/router. Wireless eliminates the need for cabling and in the case of a laptop, allows you to move freely around the home or office. Wireless is still an emerging technology and the range/reliability can be affected by the environment, so it might take some fine tuning to get it working satisfactorily. A cabled setup will generally give you a better speed and stability. It is very important to have your wireless connection securely configured, otherwise you might end up inadvertently sharing your internet connection and files with your neighbour! We sell the Billion four port wireless ADSL modem/router for $179. Every computer you want to connect via wireless needs to have a wireless receiver installed. Many modern notebooks come with this as standard. For computers that are not wireless enabled, you can install a wireless PCI card (suitable for most desktop computers, cost $69) or a wireless USB adapter (suitable for most notebook/desktop computers, cost $45). As the Billion ADSL wireless modem/router has four ports, you have the flexibility of creating a combination of wireless and wired connections.

Your ADSL modem/router needs to connect to your computer and there are two common options, either via USB or an ethernet connection. We’ll make it easy for you, don’t use USB! Ethernet is a mature technology which perfectly suits running ADSL. USB is much more likely to create conflicts, resource issues and speed variations. Most modern computers have an ethernet interface as standard, but if you don’t have one, we sell a DLink PCI ethernet card ($25) for your desktop computer or a DLink PCMCIA ethernet card ($69) for your notebook. Use the diagram (right) to identify if your computer has an ethernet card. Note the ethernet socket is slightly larger than a standard phone socket.

After you have decided on a wired or wireless modem/router, the other essential equipment is splitters or filters. Without a splitter or a filter you will not be able to make or receive normal phone calls. Splitters and filters are small rectangular units that require no power.

A splitter on your phone line is the best option, the downside is the cost, as it must be installed by a licensed installer. A splitter allows all phone devices to run as normal and you can easily add more in the future. If you have more than 4 phone devices (including standard/cordless phones, answering machines, monitored alarms, Foxtel Digital and fax machines) on the one line you must have a splitter. A splitter will ensure a more reliable connection because it is splitting the ADSL signal at a central point, rather than just filtering it. A dedicated line for ADSL must be run from the splitter to a wall point, which then connects to the ADSL modem/router. (see Diagram 1) We sell splitters for $15.

A filter is a cost effective option that requires no licensed installer. If you don’t own your property or the budget is tight, it’s a very viable option. A filter plugs in between the phone line from the street and your telephone device, generally after the phone socket (see Diagram 2). If the phone extensions are all run from a central point, you will require a filter for every extension. If you have two devices running off the same line, such as a phone and a fax on a phone double adapter, if the splitter is before the double adapter it will filter both units. The ADSL connection is the only extension that does not require a filter. We sell filters for $15 and all our ADSL modem/routers come with one in the box.

If all this talk about modems/routers, splitters, filters and network cards has you a little confused, don’t worry, it’s a one off task that we can easily help you through. If you decide to go for a splitter, we can organise a licensed installer for you. The most important thing to do after installing filters or splitters is to check all your phone devices are working properly. Monitored alarms (alarms that use a phone line to connect to a security company) are often overlooked, so make sure to test thoroughly after any installation.

How is ADSL installed?

The majority of ADSL connections are configured at the telephone exchange, so no-one needs access to your premises. Your chosen ISP can offer support in setting it up yourself. In addition, Jennings Computers can offer technical support in-house or onsite.

How does ADSL affect my phone line?

After the splitters or filters are correctly installed, it doesn’t. You can still make and receive phone calls as normal.

Why is choosing the right phone number for ADSL important?

When you apply for ADSL you need to nominate the existing phone number it will be delivered by. Each ADSL connection is tied to an phone number/line, it’s not easily transferable from house to house. If you have one standard phone line, just use that number. If you have more than one phone line, it is best to choose the line that is more likely to stay active in the future. If you are currently using dialup internet and have two phone lines, you might find a second phone line is not necessary anymore and by disconnecting it you can save on line rental costs. If you have a PABX telephone system, such as Commander, ADSL may not work. It’s important that the number you nominate for ADSL is a standard phone line. If it’s not a standard phone line, ADSL may not function and you might have to pay a second installation fee.

Moving from an existing ISP

If you’re moving from an existing ISP and you use their email addresses, be aware you will probably need to organise new email addresses. When you have confirmed your new email addresses, its just a matter of going through your address book/old emails and letting your contacts know when your address will change.

If you’re moving from one ADSL ISP to another, most ISPs offer a process called “churning”. Churning is generally much cheaper than setting up a new connection and can be done without interruption to service. It’s important to make sure both the ISP you are moving from and the ISP you are moving to both support churning, otherwise it is not an option.

When you change to a new ISP, you will need to reconfigure some software, usually login and email details.

Doing the sums in moving from dialup

If you’re moving from dialup to ADSL, there are some savings to offset against the cost. ADSL doesn’t require you to make a phone call to connect, so that is the most obvious ongoing saving. If you run a second phone line for your dialup connection you have the option to disconnect it and pocket the savings. As you are free to make and receive phone calls while online, you might find yourself using the normal phone more, saving money on the traditionally high cost of mobile phones. As ADSL is always on and faster than dialup, keep in mind you will gain productivity and save time.

Why is the contract term important?

When deciding on a ADSL provider, it is important to look at the contract term, that is, how long they will expect you to remain with their service. Contract terms generally range from one month to two years. Anything over a six month contract should be approached with caution. There are many reasons you might want to disconnect the service: you might be moving house, you might want a long holiday or a break from the internet, there might be budgetary reasons, you might be unhappy with the reliability of the connection, the price or the after sales support. It’s crucial you understand your obligations and what you have to pay out if you break your contract.

Changing plans

Most ISPs will let you change your download allowances or speed to suit your needs. Generally changes do not come into effect immediately but in the next billing period, often the first day of the following month. Changing download allowances are generally free of charge but speed changes often attract a fee of around $20. It is important to read the terms and conditions of your chosen ISP to make sure they are flexible enough to accommodate your changing needs.

Email addresses

Most ISPs offer you a certain amount of free email addresses, make sure what is offered is adequate for your requirements. If you need extra email addresses, there may be a charge involved. There will be a limit on how much data your email address can hold, if you will be receiving email with large attachments (files like pictures and video) make sure the capacity is sufficient (around 20Mb is the standard).

A great feature offered by many ISPs is Webmail, which allows you to send and receive your email through a web browser. This is really useful if you’re on holidays or simply away from your regular computer.

Virus and spam filtering

Many ISPs offer virus and spam filtering. This has a distinct advantage over traditional scanning software, because the virus/spam can be detected and deleted before reaching your computer. You should always have antivirus software on your computer but as a secondary form of defence filtering can be very effective. If the cost is not too expensive it can be a very worthwhile option.

Webspace

Webspace is often another freebie that allows you to put up your own website and share files (pictures/music/video etc) with others. If webspace is something you are interested in, make sure the capacity of the webspace is adequate (around 20Mb is the norm). There will generally be limits on how much can be downloaded from your webspace, most ISPs allow “reasonable use” which is suitable for the majority of clients. “Reasonable use” dictates that if your website is so heavily used that it is detrimental to the performance of their network, limits may be imposed. Few websites ever achieve this status. If you’re looking to use your webspace for business use, you are generally better off to look at business webspace. Business webspace (commonly known as hosting) provides more professional features such as customised domain names, statistics about visitors and a higher level of support and reliability. Free webspace that is included with your ADSL account is often provided under the condition that it is for non-commercial use.

Dialup backup

Although ADSL is generally very reliable, it can have problems like any other technology. Many ISPs offer dialup backup for when ADSL is experiencing technical difficulties at their end. If you rely heavily on the internet, this is worth looking out for. Depending on the ISP, this may be a free service or it may be charged.

Free stuff: Free connections, equipment, discounts and cashbacks

The ADSL market is highly competitive and many ISPs are offering all sorts of incentives to join with them. This can mean great savings but you also need to do the sums when comparing the ongoing costs. The old adage “you get what you pay for” definitely applies to ADSL. In many cases the short term discount you get with promotional offers are offset by the long term cost. Work out the total costs over the time you expect to use the service to make sure the promotion sweetener isn’t offset by higher rates.

Telstra Bigpond’s download trap

Telstra BigPond is Australia’s largest ISP. Unfortunately, they have one of the most expensive policies on downloads of any ISP. We are highlighting this trap in an effort to encourage Telstra into changing their policy or consumer groups to take action. Telstra’s download trap has caused many people financial hardship and stress.

Telstra’s cheapest plan is 200Mb of downloads for $29.95. Additional downloads are 15c per Mb. There is no upper limit (cap) on what you can be charged.

So what could you be charged? If your internet connection was used to capacity, in one day you could rack up $400 worth of additional downloads. Over 30 days, that could amount to a $12,000 bill. There have been documented cases of people receiving bills for over $8,000 for one month of internet use. Obviously, these are extreme cases. It’s not easy to get a $8,000 bill, but a $500 bill is comparatively simple to achieve.

You don’t necessarily have to be using the internet to be accumulating downloads. Viruses, spyware, hackers and software (such as antivirus, security update and file sharing software) will often cause downloads without your interaction. The excess fees are not a true indication of the plan’s cost. Some ISPs offer completely unlimited and unshaped downloads for around $70 per month. Telstra BigPond charges $150/GB for excess downloads on its 200MB plan, while other many ISPs charge around $10/GB.

In our opinion, Telstra’s plans should be capped at a certain amount, in line with most other ISPs. Although the responsibility ultimately lies with the consumer in selecting an appropriate plan, the risk of running up a bill in the hundreds or thousands is just too easy. A $29.95 plan should not have the potential to turn into a $10,000 plan. If you think we’re overstating the issue, here’s a sobering statistic: In 2003 Telstra openly admitted that 17% of their revenue came from excess fees and charges. Out of their five current ADSL plans, only one of them has a cap.

Alternatives to ADSL

This article focuses on ADSL, being the most widely available form of broadband in Australia. There are many alternatives to ADSL such as cable, wireless, satellite and ADSL2 that are worth considering if they are available in your area.

The ADSL supplier we recommend

We are agents for WestNet and they are an ISP we thoroughly recommend.

We recommended WestNet for two reasons: We believe they offer the best service of any ISP in Australia and their prices are very competitive. In a time when customer service has reached all time lows, especially in telecommunications, WestNet deliver “knock your socks off” service. This is not just our opinion. They have been voted “Best ISP in Australia for customer service” in the AC Nielsen survey for the past two years.

Here’s one example of how WestNet looks after you. If the price of your plan goes down, they automatically put you on the better rate. Believe it or not, this is not the norm for the industry. Many ISPs (including Telstra) will continue to charge you the higher rate, even after reducing their plan costs.

Imagine if your local pub worked like this! Let’s say you go to your local once a week and buy a beer for $4. It’s the price you’ve paid for years. Then you find out that everyone else is paying $3 for the same beer, they dropped the price twelve months ago. Is that pub doing the right thing by you?

Of course, WestNet lose a lot of profit by not keeping you on the more expensive rate but it’s a good example of their commitment to the customer.

Join Westnet through us and get double the support!

If you’re thinking of joining WestNet, consider the benefits of signing up through Jennings Computers. You wont pay one cent more in WestNet charges, but you get full support through Jennings Computers as well as WestNet. We can help you with paperwork, hardware, installation, set up and after sales support. That’s a great deal, you get double the support at no extra charge and as a small business, we’d really appreciate it.

WestNet application forms are available here or directly through Jennings Computers.

How does WestNet stack up with the points in this article?

To save your time, here is a summary of how WestNet stacks up with the points in this article. This is useful when comparing WestNet against other ADSL providers. For specifics about the plans available, download the application form here or request one directly through Jennings Computers.

WestNet offer:

• Downloads up to a certain amount, then your speed is slowed down or downloads up to a certain point, then you pay extra for all downloads past that point. All plans are price capped if you choose the first option (recommended).
• Churning for $25 (or free if you commit to a 12 month contract). If you select the $25 churning option and cancel within 6 months, a $55 fee applies. If you select the 12 month option and cancel within 6 months, a $105 fee applies. If you select the 12 month option and cancel between 6 and 12 months, a $55 fee applies.
• A 6 month contact term for new accounts. If you cancel your connection within 6 months, a $55 fee applies.
• The ability to change plans at anytime, which comes into effect the first day of the next monthly billing cycle. If you downgrade your speed to 256k/64k from a higher speed within the first 6 months, a fee of $49 applies. Other speed changes will incur a $19.95 fee. If you change download limits without changing speeds, there is no charge.
• 6 email addresses free with every account. Each email address has a 50Mb limit. Virus scanning for all your email addresses is available for $20 per year, spam filtering is available for $10 per year. Webmail is standard.
• Free, non-commercial webspace of 20Mb. A reasonable use policy applies for webspace downloads.
• Free dialup backup if there are technical difficulties at their end.

Why I wrote this article

This article was designed to be a general guide to ADSL that covers the main points and the most commonly asked questions. For fear of overloading you with information, it is not as in depth as it could be. It has opinion and bias, we are a business after all! It is by no means the definitive guide to ADSL but it does contain good, solid advice.

There is a lot more information available through the internet, books and magazines. I recommended the following websites as great sources for information about ADSL: whirlpool.net.au and ozcableguy.com

You have any comments or suggestions for future revisions of this article, please feel free to contact me at steven@jc.com.au

Click here for plan information / application form (PDF)

Transfer (churn) form (PDF)

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