Modem vs. router: What's the difference and which one do you need?

By Alex Choros

Last updated 24 October 2022

Contents

In this guide:

What's the difference between a modem and a router?
Do I need a modem or a router?
Advice for setting up a new internet connection
FAQs

We often get asked about the differences between a modem and a router, and we get it, networking hardware can be complicated. Both modems and routers are essential in getting online, but the exact type of device you need depends on what kind of NBN connection you have at your home or office. Yes, it really is that simple!

What's the difference between a modem and a router?

A modem (in some cases, an NBN connection box) establishes a connection between your home or business and the internet, whereas a router is responsible for then distributing that connection to different devices in your home.

If you're confused because you only have one hardware device that appears to do both, this is because most modems double as routers; these are typically branded as modem routers. But if your modem doesn't have a router component, you will have to connect your devices to the internet by adding a separate router. A modem doesn't even emit WiFi if it doesn't have a router component.

Standalone modems aren't overly common. On the other hand, you'll find plenty of standalone routers.

TOP TIP

The easiest way to tell the difference between a modem router and a router is by reading the box or the product description. A modem router will always be called a modem router. A standalone router won't feature the word "modem" anywhere on the box. If a product is simply called a router, it's not a modem.

If you don't have the packaging of your device, you can check by looking at its ports. The vast majority of modem routers sold in Australia have an RJ11 port for connecting to the telephone socket in your wall. If your device doesn't have an RJ11 port, there's a good chance it's not a modem router - it's probably just a router.

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Do I need a modem or a router?

Whether you require a modem or a standalone depends on how you connect to the NBN. In some cases, the hardware provided by NBN Co acts as your modem, so all you need to bring is a router.

If you have answered "what kind of NBN connection type do I have" and your NBN connection requires a modem router, you'll want to look for a VDSL modem router. The good news is that most modem routers sold in Australia are of the VDSL variety.

If your provider includes a modem with your plan, the hardware should match your connection type. Everything should work out of the box. If you'd prefer to buy your own, you'll need to ensure you're buying the right equipment for the job.

Here’s what you’ll need based on your connection type:

Fibre to the Premises NBN: You'll need a router. This will plug directly into your NBN connection box mounted to your wall.
HFC NBN: You'll need a router. This will plug into the NBN connection box
Fibre to the Node NBN: You'll need a modem router. This will plug into the telephone socket used to facilitate your NBN connection.
Fibre to the Building NBN: You'll need a modem router. This will plug into the telephone socket used to facilitate your NBN connection.
Fibre to the Curb NBN: You'll need a router. This will plug into the NBN Connection Box supplied by NBN Co for free.
Fixed Wireless NBN: You'll need a router. This will plug into the connection box supplied by NBN Co.
Satellite NBN: You'll need a router. This will plug into the satellite modem that NBN Co supplies for free.

If you know which type you need, check out our guide to the best NBN modem and routers in Australia.

Advice for setting up a new internet connection

If you're setting up an internet connection for the first time or in a new location, we highly recommend familiarising yourself with your connection type first. From here you can check out our handy guide below which debunk a number of NBN, modem and router queries:

FAQs

How many devices can be connected to a modem?

In theory, there is no limit to how many devices can connect to your modem at one time. But keep in mind, more devices do mean a slower connection for everyone on it. Alternatively, the faster your connection, say an NBN 250 or NBN 1000 speed tier, plus the better your hardware equals more devices that will have a steady and reliable connection.

Can I use a modem without a router?

Only if it's a modem router. Otherwise no, you will need both to connect to the internet and transmit its signal to other devices in your home or place of business.

Do you need a modem if you have a router?

Both a modem and a router are needed to distribute your internet connection to other devices. Some modems double as a router - these are called modem routers. Unless you have one of these, you will need both to connect your internet-using devices to the internet.