Wireless internet vs the NBN: Which should you choose?

When it comes to choosing the best value broadband connection, you’ve got plenty of choices – and we’re not just talking about the choices of best NBN providers, either. 

There’s a range of NBN alternatives available to many Australians, with wireless internet services often touted as a cheaper and faster alternative.

The reality here is more complex, depending on both your needs and budget. The National Broadband Network is meant to provide essential Internet access to all Australians, and it remains for many the simplest choice – but that’s not always going to be your best option. Here’s what you need to consider when choosing whether wireless internet services or the NBN are best for you.

Wireless Internet plans operate on the same mobile networks that your smartphone operates on, using either 4G or 5G connectivity to deliver data to your home or office. Of course you can use just a mobile phone working as a Wi-Fi hotspot to the same effect, but the difference for wireless internet plans designed for a fixed location is that those plans typically come with much higher (or unlimited) data quotas, and they’re typically only available if a provider determines that you’re going to be able to access services at a decent speed level as well within your property. 

They’re not mobile either, because they work off powered modem-router devices that plug into your wall and expect to be working at that specified home or office – so you can’t, for example, pack up your wireless home internet router and take it to your holiday home and generally expect it to work.

Just as you can with NBN plans, there’s a range of speeds and data inclusions that you can get with wireless Internet plans depending on both network coverage and how much you’re willing to spend, though it’s typically expressed differently to the way that NBN plans are sold.

The slower tier of wireless internet plans typically operate on 4G networks with speeds at most hitting 50Mbps down, which might at first glance suggest that they’re analogous to NBN 50 plans given that speed description – though many cheaper plans are instead capped at just 20Mbps peaks.

It’s also possible to get 5G plans with 50Mbps speed caps, though others will offer 100Mbps or even “uncapped” performance, typically peaking out at around 250Mbps or thereabouts.

Comparing direct speeds between NBN and wireless internet isn’t quite that simple however. While NBN connections can get congested, and there’s definitely situations on some NBN connection technologies such as FTTN where copper lengths can determine maximum speeds, fixed line NBN services can deliver a largely – not exclusively, but largely – more consistent speed experience for most users.

It is a little more complex on the Wireless Internet, however, because the nature of mobile data signals is that they can be quite variable, depending on network usage, precise modem and antenna placement and environmental factors such as weather. In many cases it can only really be determined by actual usage within a given location, though this is why some providers won’t actually sell 4G or 5G wireless internet plans in some locations, because their own coverage maps will show them that you’re likely to get a sub-par experience. 

Naturally if you’re already on one of NBN’s wireless services — either NBN fixed wireless or NBN Sky Muster Satellite — the speed equations are a little different, although being in that footprint also makes it far more likely that you’re in an area where 4G and 5G wireless Internet services aren’t being actively sold – but where alternative services such as Starlink may be a more viable alternative.

What about data? Where many mobile broadband plans work on data quotas, the vast majority of wireless internet plans for fixed locations don’t include data quotas at all. That’s broadly true for nearly all NBN plans too.

One area where Wireless Internet services do seriously compete with fixed line NBN services are in plan pricing. That’s not surprising, with the primary sellers of Wireless Internet services being the big three network telcos. They can keep more of the profits from traffic on networks they 100% own, whereas NBN services are sold by them as effective middlemen with less of a profit margin.

It can be interesting to compare plan pricing to see what you get. For example, here’s what you’ll pay for a 50Mbps capped connection using Wireless Internet from a range of providers.

And here’s what you’ll pay for an NBN 50 connection:

The next tier up, where typically you’re looking at 5G connectivity to reliably hit those speeds is 100Mbps:

Here’s how that compares against NBN 100 plans:

If you’ve got a real need for speed, some providers do offer wireless internet plans at higher rates, though typically this is where they take the speed brakes off and provide “best case” uncapped tiers, usually expressed at the maximum of around 250Mbps down. If you’re very close to an uncongested 5G tower you might get more than this at some times, but given the variability of mobile networks, you could of course get somewhat lesser speeds too:

In order to get 250Mbps or better speeds you’d need to be in either the FTTP or HFC NBN footprints. Here’s how plans at the NBN 250 tier compare:

And finally what you’ll pay on a top-tier NBN 1000 plan right now:

The other factor to consider with wireless internet services is the hardware cost. NBN-compliant modems (where needed) will typically work between providers (though some services such as 4G backup don’t), but most wireless internet services are sold with very specific modems that typically only work with that service in that location. If you want to shift providers, you may need to buy an entirely new modem to do so, and if you move, your existing modem might not work in your new location if your wireless internet provider doesn’t offer services in that area. 

Wireless Internet plans can be a great alternative if your NBN connection isn’t up to scratch, especially if you’re on the end of a very long FTTN copper loop where peak speeds can become seriously compromised. Plan pricing can also be a competitive factor in favour of a wireless internet service.

The flipside there is that wireless internet speeds can be significantly variable, with serious peaks and troughs in performance depending on network configuration, congestion and external factors such as weather. Those issues can hit fixed line NBN services as well, but not typically with the same levels of variability.

Given that there’s a requirement for NBN services to be available to everyone, we’d strongly suggest that you treat NBN as the baseline – it’s always available – but of course that can’t ignore the reality that for some it’s not always that fast or reliable. If that’s you, then it’s definitely worth at least exploring what’s possible with Wireless Internet services in your area.