NBN plans have been faster than ever since the speed increase in September 2025. Many households on the network are now seeing significantly faster speeds without changing plans.
The big three telcos, Telstra, Optus, and TPG, all offer modem inclusions available with an NBN plan. Out of the box, these modems work great, but when it comes to faster connections you might be missing out on performance.
Let’s check out what hardware the major telcos offer, and how they stack up against some of the best third party options on the market.
What the major telcos give you
Telstra offers two plan structures; an Internet Only plan where you pick your own modem, and a plan with modem and phone line option that comes with the Smart Modem 4. It’s worth noting that Telstra’s Mobile Backup is only included on the latter plan.
Optus offers the Ultra Wi-Fi Modem Gen 2 as an optional inclusion for $0 upfront, but if you cancel early you’ll pay a pro-rata fee. It has incompatibilities with some third party NBN providers, so it’s pretty dubious value if you’re likely to switch providers.
| Provider | Hardware | Notes | Price |
|---|---|---|---|
| Telstra | Telstra Smart Modem 4 | Dual-band Wi-Fi 7, four gigabit ethernet ports, 5G fallback (not on Internet Only plans) | $200 non-return fee if you leave within 24 months |
| Optus | Optus Ultra Wi-Fi Modem Gen 2 | Dual-band Wi-Fi 6, four gigabit ethernet ports, 4G fallback | $0 upfront, but if you cancel early, you could pay up to $252 |
| TPG | TP-Link VX420-G2v | Dual-band Wi-Fi 6, four gigabit ethernet ports | $0 upfront, but if you leave early you could pay up to $114.95 |
Other popular providers like Aussie Broadband and Superloop provide routers as bundled add-ons where you pay discounted upfront costs. These can be a good deal if you’re happy with the router they’re offering.
In general, telco included modems work fine for getting you connected, but on higher NBN plans you might be leaving performance on the table with a telco modem.
Three signs of a poor modem
Speed slowdown when another household member starts streaming, fast NBN plan but speed tests fall short, and unexplained device dropouts. Does any of this sound familiar?
If so, you might be dealing with the pitfalls of a bad modem.
Losing speed when another user starts downloading or streaming can be caused by a lack of Quality of Service (QoS) – a feature that lets your router prioritise important traffic. A smarter router can be told what network traffic matters and boost that, while telco-included modems omit the feature.
Speed tests not matching your plan speed can be caused by limited local network speeds. Ethernet ports that are limited to one gigabit per second can never transmit more than that speed regardless of your NBN plan. For wireless devices, the same applies across its radio.
If you’re experiencing device dropouts, this could be caused by a router that prioritises 5GHz bands over 2.4GHz bands, poor wireless coverage, and more.
Where telco modems fall short
The hardware these telcos send you is built to a budget and designed to meet the average household needs – not the needs of high performance connections found on a lot of services today.
Telstra Smart Modem 4
Despite the Wi-Fi 7 certification, Telstra’s Smart Modem 4 only operates on standard 2.4GHz and 5GHz bands, and channel width (which affects speed) is capped well below Wi-Fi 7 standards, meaning there’s only a minimal upgrade over a Wi-Fi 6 router.
All its ethernet ports are capped at 1Gbps, so if you’re on NBN 1000 or higher you’ll hit the speed ceiling.
If you’ve got a larger house or complex layout that benefits from a mesh solution, you can expand the Smart Modem 4 to support this. However, Telstra’s Smart Wi-Fi Boosters cost a whopping $288 each and drop wireless technology back to Wi-Fi 6 standards.
Optus Ultra Wi-Fi Modem Gen 2
Optus’ included modem provides no upgrade path to Wi-Fi 7 and independent testing has found its 5GHz coverage quite limited. Additional Wi-Fi Boosters come in at $216 a pop, meaning you might pay a significant additional sum over a third-party router with stronger wireless.
Like Telstra’s offering, all of its ethernet ports are capped to 1Gbps, so if you’re on a high speed plan, the modem can’t keep up.
The Optus modem has a locked firmware that means it’s not compatible with all NBN providers, so you’re paying for a device that you might not be able to use if you choose to switch away.
TPG TP-Link VX420-G2v
TPG’s modem inclusion is half the price of Telstra and Optus options, but offers mostly the same functionality.
Unfortunately, TPG’s custom firmware removes several customisation features and applies an upload speed limiter that can reduce your NBN speeds below your plan’s real capability.
Like the others, this modem is capped at 1Gbps across its ethernet ports. At least it comes in a bit cheaper.
What good hardware does better
Third party options provide big upgrades over telco inclusions. Better QoS means your video calls and gaming get priority, the router’s ethernet ports become faster, and Wi-Fi speeds see an increase too.
Most important of all, they’re free of connection locks, so if you decide to switch to another provider, you can continue using the same hardware.
Third party options are way better value. They offer better performance per dollar than the majority of telco-provided options.
The best NBN modems worth upgrading to
With these performance gains in mind, let’s check out some great alternatives to your bog standard telco modem.
TP-Link Archer BE550
TP-Link’s Archer BE550 is a great all-round option that provides a direct performance upgrade from all the telco modems we’ve discussed. It provides 2.5Gbps ethernet, so it can deliver the full speed of NBN 1000 and higher plans.
It’s also got full tri-band Wi-Fi 7 for 2.4GHz, 5GHz, and 6GHz connections that none of the telco modems provide.
For households with a high number of devices, the BE550 features great QoS and wireless network separation. You can even expand its coverage with EasyMesh compatibility if you find a dead spot in your home.
D-Link M60 Aqulia Pro AI AX6000
The D-Link M60 provides a huge amount of Wi-Fi bandwidth that makes it ideal for households with a lot of devices on the wireless network. It features a 2.5Gbps WAN port that allows it to keep up with superfast NBN plans.
Coming in mesh packs of one, two, or three units, each can cover up to 280 square metres, ensuring there’s a pack that’s ideal for serving larger Australian homes.
Setup and configuration is guided with D-Link’s companion app, allowing you to connect easily, monitor the network, and configure settings right from your phone.
Amazon eero 7
Amazon’s eero 7 router is an approachable entry point for mesh Wi-Fi, with an app-directed configuration that simplifies setup.
A single unit covers up to 190 square metres of floorspace, with additional units available to add on.
A major caveat here is the subscription model. While the eero 7 provides basic security features on board, if you want advanced controls they’re locked behind an Amazon eero Plus subscription fee that reaches $15.99 a month.
I’m hesitant to recommend a router that locks functions behind a subscription fee, but it’s hard to beat when it comes to ease of setup.
Should you upgrade?
If you’re having any issues with your telco-included modem, third party options are well worth investigating. While the Telstra and Optus modems are great for easily getting connected, they’re not designed to give you the most out of your connection.
For more info, check out our guide on Wi-Fi extenders versus mesh and how to keep your data safe online with a VPN.
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