NBN Co is set to begin rolling out major broadband speed upgrades from 14 September. These upgrades promise speeds of up to 500Mbps on standard plans and introduce new multi-gigabit options. This initiative is part of a broader strategy aimed at boosting Australia's internet infrastructure and driving an estimated $400 billion in economic value by 2030. However, a key issue remains. Many households continue to use ageing Wi-Fi equipment that cannot support these new speeds.
A large number of Australian homes are still using modems that are more than a decade old. While NBN Co's network is capable of delivering the upgraded speeds, outdated in-home equipment is creating a significant bottleneck. This limits the benefits people expect, since connection speed depends both on what enters the property and how it is distributed internally via Wi-Fi.
Planned speed increases are substantial. Standard plans will shift from 100Mbps to 500Mbps, and premium plans will reach up to 2000Mbps. Yet, many older routers, particularly those using the Wi-Fi 4 standard, cap out at 100Mbps. Even newer models, including some with Wi-Fi 7, can struggle with coverage issues in properties with multiple levels or thick walls.
This mismatch between promised speeds and real-world performance is creating confusion. According to one major telco, over 80% of Australians wrongly believe their provider is solely responsible for Wi-Fi quality. In fact, modem selection, home layout and property size all significantly affect performance. Poor home Wi-Fi remains one of the most common complaints received by internet providers, even though the broader network has improved.
To help bridge the gap, some providers are including Wi-Fi 7 modems and mesh systems with new fixed wireless and NBN plans. Mesh systems improve coverage throughout the home but may involve additional costs, which can amount to hundreds or even thousands of dollars. Providers are also reaching out to customers with incompatible hardware, encouraging hardware upgrades and offering eligibility checks for free fibre upgrades and faster services.
As Australia moves towards a high-speed internet future, the main challenge could be raising awareness about the importance of consumer hardware. Without compatible modems and a well-designed Wi-Fi setup, even the fastest internet plans could fail to meet expectations.
