Modem vs Router: What’s the Difference and Which Do You Need for NBN?

Home & Business Internet Blog | MATE | 22 May 2024

Key Takeaways (TL;DR)

If you just want the quick version, here’s what you need to know:

• A modem connects your home to the internet through your service provider
• A router creates a network in your home so multiple devices can connect wirelessly (Wi-Fi) or via cable
• A modem-router does both jobs in one device, it’s the simplest option for most homes
• For most people, a modem-router combo is the easiest, most affordable choice
• MATE offers pre-configured, plug-and-play modem-routers that work straight out of the box
• You can use your own equipment if you prefer, as long as it’s compatible with your connection type

Why This Stuff Matters

Setting up home internet shouldn’t feel like studying for an IT exam. But if you’ve ever found yourself staring at terms like ‘modem’, ‘router’, and ‘modem-router’ wondering what the difference actually is, you’re not alone.

Here’s the good news: it’s way simpler than it sounds. Think of your internet setup like getting water to your home. The modem is like the main water pipe connecting your house to the street. The router is like the plumbing inside your house that sends water to different taps. A modem-router? That’s both things in one box.

This guide breaks it all down in plain English, helps you figure out what you actually need, and shows you how MATE makes the whole thing dead simple with plug-and-play options that just work.

What Is a Modem? (Your Gateway to the Internet)

A modem is the device that connects your home to the internet. Without it, you’ve got no connection to the outside world.

Here’s what it actually does: your internet service provider (that’s us at MATE) sends internet signals through a cable or phone line to your home. The modem’s job is to translate those signals into something your devices can understand. It’s basically a translator between your ISP’s network and your home network.

The word ‘modem’ is actually short for modulator-demodulator, which describes what it does technically, but you don’t need to remember that. Just think of it as the bridge between your home and the internet.

What a Modem Does

• Connects to your internet provider: This is the main link between your home and the wider internet
• Translates signals: Converts the signals from your ISP into data your devices can use
• Provides wired connections: Usually has an Ethernet port so you can plug in a device directly

Important thing to know: a modem on its own usually only connects one device at a time via an Ethernet cable. If you want multiple devices online (and let’s be honest, who doesn’t?), that’s where routers come in.

What Is a Router? (Spreading the Internet Love)

If the modem brings the internet into your home, the router is what shares it around. Think of it as the device that creates your home network.

A router takes that single internet connection from the modem and creates a local network so all your devices (phones, laptops, tablets, smart TVs, gaming consoles, smart home gadgets) can get online at the same time. It also creates your Wi-Fi network, which is how most of your devices connect these days.

Modern routers are pretty clever. They manage traffic between your devices, prioritise important connections (like video calls or gaming), and provide security features to protect your network from unwanted visitors.

What a Router Does

• Creates your home network: Sets up a local network so multiple devices can connect
• Provides Wi-Fi: Creates the wireless network you connect to on your phone and laptop
• Offers wired connections too: Most routers have Ethernet ports for devices that need a more stable connection, like gaming consoles or desktop computers
• Manages network traffic: Directs data to the right devices and helps keep everything running smoothly, even when everyone’s online at once
• Handles security: Provides basic protection for your network, lets you set up passwords, and can include features like parental controls or guest networks

Here’s the key difference: while a modem connects you to the internet, a router doesn’t connect to your ISP at all. It needs a modem to do that. The router’s job is purely about sharing that connection around your home and making sure all your devices can communicate with each other and the wider internet.

Modem vs Router: What’s the Actual Difference?

Alright, let’s clear this up once and for all.

The main difference is in what each device connects to:

• Modem → connects your home to your internet provider’s network
• Router → connects your devices to each other and to the modem

In the old days, you needed both as separate boxes. The modem would plug into your wall, then you’d plug a router into the modem, and finally you’d connect your devices to the router. It worked, but it meant two power cables, two boxes taking up space, and twice the setup hassle.

Another way to think about it: the modem is your connection to the outside world, and the router is your internal distribution system. You need both functions to get Wi-Fi in your home, but you don’t necessarily need two separate devices to do it.

These days? There’s a much simpler option.

Modem-Router: The Best of Both Worlds in One Device

A modem-router (sometimes called a gateway) combines both devices into one unit. It connects to your ISP and creates your home network. One box, one power cable, one setup process.

This is what most households use these days, and for good reason. It’s simpler, more affordable, and works brilliantly for typical home internet needs. Unless you have very specific requirements or want the flexibility to mix high-end components, a modem-router combo is almost always the smarter choice.

Why Most People Choose a Modem-Router

• Simpler setup: Plug it in, follow the instructions, and you’re online. No fiddling with multiple devices or configuring connections between them
• Less clutter: One device instead of two means less space taken up, fewer cables to manage, and a tidier setup overall
• Lower cost: Buying one device is generally more affordable than buying two separate ones, plus you only need one power point
• Works great for most homes: Modern modem-routers are powerful enough to handle typical household needs without breaking a sweat — streaming, gaming, video calls, smart home devices, the works
• Easier troubleshooting: When there’s only one device, it’s simpler to figure out if something goes wrong. You’re not wondering whether the issue is with the modem, the router, or the connection between them

That said, there are situations where separate devices might make sense, like if you’re a tech enthusiast who wants high-end equipment, or you have very specific networking needs. But for the vast majority of households, a good modem-router combo is the sweet spot.

Quick Comparison: Which Setup Is Right for You?

Here’s a side-by-side look at your options to help you decide:

How to Choose the Right Setup for Your Home

Choosing between a modem-router combo or separate devices comes down to a few simple questions. Let’s walk through them:

1. How Much Space Do You Have?

If you’re short on space or prefer a tidy setup, a modem-router combo is your friend. One device, one power point, done. This is especially handy if you’re in an apartment, have limited desk space, or just don’t want extra cables and devices cluttering up your living area.

Separate devices mean more cables and more real estate taken up on your desk or shelf. It’s not a huge deal if you’ve got plenty of space, but if you’re trying to keep things minimal, the combo option wins.

2. What’s Your Budget?

Modem-router combos are generally the more budget-friendly option. You’re buying one device instead of two, which means a lower upfront cost. Plus, you only need one power point, which can matter if you’re in a spot where power outlets are precious real estate.

If you go with separate devices, you’re looking at buying both a modem and a router. While you might get slightly more flexibility or higher specs with separate high-end units, the cost adds up quickly. For most people, the performance of a good combo device is more than adequate for everyday use.

At MATE, we have modem-router options with to suit your needs, so you don’t have to worry about hunting down compatible equipment or dealing with setup headaches. It’s already factored in, and you know it’ll work with your connection type from day one.

3. How Tech-Savvy Are You?

Be honest with yourself here. If you just want something that works without fuss, a pre-configured modem-router is absolutely the way to go. You plug it in, follow a few simple steps (usually just connecting to the Wi-Fi network and entering a password), and you’re online within minutes.

If you’re comfortable with technology, enjoy tinkering, and want the flexibility to upgrade individual components or tweak advanced settings like port forwarding, Quality of Service (QoS) rules, or custom DNS settings, separate devices give you more control. But here’s the thing: most modern modem-routers also offer advanced settings if you want to dig into them. You’re not locked out of customisation, it’s just packaged more conveniently.

For most people, the plug-and-play simplicity of a combo device is exactly what they need. Life’s too short to spend hours configuring network settings when you just want to watch Netflix or hop on a video call.

4. What’s Your Connection Type?

This is important: your modem needs to match your connection type. Different connection technologies require different types of modems. If you’re on a connection that comes through a phone line, you’ll need a modem with the right port for that. If you’ve got fibre or cable, you’ll need a modem designed for those technologies.

The good news? When you choose a MATE-supplied modem-router, we’ve already done this homework for you. Our devices are pre-configured and guaranteed to work with your specific connection type, so you don’t have to worry about compatibility issues, wrong ports, or discovering you’ve bought the wrong equipment after it arrives.

If you’re bringing your own equipment, you’ll need to check the manufacturer’s specifications carefully and make sure it matches your connection technology. It’s not always obvious from the product name, which is why getting a pre-configured option from your provider saves a lot of headaches.

5. How Many Devices Will You Connect?

Most modern modem-routers can easily handle a typical household’s worth of devices – phones, laptops, tablets, smart TVs, gaming consoles, and more. Even homes with heavy usage (multiple people streaming, gaming, and video calling at the same time) generally do fine with a good combo unit.

If you’re running a home office with heavy network demands, have an unusually large number of connected devices, or need to support specific business-grade requirements, you might benefit from a high-end separate router. But that’s the exception rather than the rule.

For context, a typical household these days might have 15-25 devices connected to the network at any given time when you count phones, tablets, laptops, smart TVs, streaming devices, smart speakers, security cameras, and other smart home gadgets. Modern modem-routers handle this workload without breaking a sweat.

6. Do You Need to Cover a Large Area?

If you’ve got a large house or a property with thick walls, Wi-Fi coverage can be a challenge. Standard modem-routers typically cover around 100-150 square metres effectively, which works for most homes. But if you’ve got a multi-storey house, very thick walls, or a sprawling floor plan, you might need additional coverage.

The good news is that many modern modem-routers (like the TP-Link options MATE offers) support mesh networking. This means you can add additional units to extend coverage throughout your home, creating a seamless Wi-Fi network that automatically hands off your devices as you move around.

Mesh systems are brilliant for larger homes because they eliminate dead spots and provide consistent coverage everywhere. And because they’re designed to work together, setup is usually straightforward. Much easier than trying to configure multiple separate routers.

Common Misconceptions About Modems and Routers

Let’s clear up a few things people often get wrong:

‘More Expensive Always Means Better’

Not necessarily. While there are genuine differences between budget and premium equipment, the most expensive option isn’t always the best fit for your needs. A modestly priced modem-router that matches your connection type and covers your home effectively is often a smarter choice than a top-spec device with features you’ll never use.

‘Separate Devices Always Perform Better’

This used to be true, but it’s not anymore. Modern modem-router combos are powerful, reliable, and more than capable of handling typical household demands. Unless you have very specific requirements or want bleeding-edge performance for competitive gaming or heavy file transfers, a good combo device will serve you well.

‘You Can’t Use Your Own Equipment’

This depends on your provider, but at MATE, you’re absolutely welcome to use your own equipment. We don’t lock you in. The only requirement is that your equipment needs to be compatible with your connection type. Just keep in mind that our support team can only provide limited help troubleshooting third-party devices.

‘Wi-Fi Speed Is the Same as Internet Speed’

This confuses a lot of people. Your internet speed is what you’re paying for from your ISP — the maximum speed of your connection to the wider internet. Your Wi-Fi speed is how fast data moves between your devices and your router within your home network.

If your internet plan gives you 100 megabits per second, but your Wi-Fi connection is only running at 30 megabits due to distance from the router or interference, that’s your bottleneck. A better router can improve your Wi-Fi speed, but it can’t make your internet connection faster than what you’re paying for.

Why Choose MATE-Supplied Modem-Routers?

When you sign up for a MATE nbn plan, you can add one of our fully unlocked, plug-and-play modem-router options. Here’s why that’s a smart move:

Pre-Configured and Ready to Go

Our modem-routers come pre-configured for your connection. That means no complicated setup, no hunting through settings menus, no calling tech support because nothing’s working. You plug it in, it connects, you’re online. That’s it.

This matters more than you might think. Setting up a modem-router from scratch can involve entering connection details, configuring protocols, and troubleshooting if something doesn’t work. When you get a pre-configured device from MATE, all of that’s already done. You literally plug it into power and your wall connection, and it handles the rest.

Guaranteed Compatibility

One of the biggest headaches with bringing your own equipment is making sure it actually works with your connection type. There are different technologies used for internet connections in Australia, and not every modem works with every type.

With MATE-supplied options, compatibility is guaranteed. We’ve tested them, we know they work with the specific connection technology at your address, and we’ll support you if anything goes wrong. You’re not gambling on whether the equipment you buy online will actually work when it arrives.

Modern, High-Performance Hardware

We offer two TP-Link modem-router options, both designed for different setups and both offering excellent performance:

• TP-Link VX230v – $165: Best for certain connection types or if you’re using VoIP (internet-based phone calls). This device includes Wi-Fi 6 technology (the current standard for fast, reliable Wi-Fi), gigabit Ethernet ports for wired connections, and built-in support for VoIP phones. It’s a solid, reliable choice that handles everything most households throw at it.
• TP-Link HB210 Pro – $165: Ideal for fibre, cable, or Fixed Wireless connections (without VoIP). This is the newer, more advanced option, featuring Wi-Fi 7 (the latest and fastest Wi-Fi standard), mesh-ready capability so you can add additional units for whole-home coverage, support for speeds up to 2.5 gigabits per second, and the ability to handle over 200 connected devices simultaneously. If you want cutting-edge performance and future-proofing, this is the one.

Both devices are fully unlocked, which means you own them outright and can take them with you if you switch providers later. Delivery is included in the price, so there are no hidden costs.

Local Support When You Need It

If you ever run into issues, our support team knows these devices inside and out. We can walk you through any troubleshooting, answer questions about settings or features, and help you get the most out of your setup.

That’s a little trickier when you’re using third-party equipment we’re not always familiar with. We can still help with connection issues, but we can’t provide detailed guidance on your specific hardware’s settings or features if it’s not equipment we supply.

Having local support that actually understands your equipment makes a huge difference when something goes wrong or you just need help configuring a specific feature. No being bounced between different support teams or trying to explain your setup to someone reading from a generic script.

Can You Use Your Own Equipment?

Absolutely. MATE doesn’t lock you in or force you to use our equipment. If you already have a modem-router you’re happy with, or you prefer to buy your own, you’re welcome to use it — as long as it’s compatible with your connection type.

Just keep in mind that we can only provide limited support for third-party devices. If something goes wrong, we can help with the connection itself (making sure you’re getting the speeds you’re paying for, checking line quality, etc.), but we are limited in our ability to  troubleshoot your specific hardware or walk you through its settings menus.

Some people prefer to use their own equipment because they already own a device, want a specific brand or model, or have particular features they need. That’s fine, we’re not here to force you into anything. We just make sure the option for pre-configured, guaranteed-compatible equipment is there if you want the simpler path.

Frequently Asked Questions

Here are the questions we get asked most often:

1. Do I need both a modem and a router for my home internet?

Not necessarily. These days, most people use a modem-router combo (also called a gateway) which combines both functions in one device. This is simpler, more affordable, and takes up less space than having two separate boxes. You only really need separate devices if you have specific technical requirements, want the flexibility to upgrade components individually, or already own high-end equipment you want to use. For the vast majority of households, a modem-router combo is the smarter choice.

2. Can I use my own modem and router with MATE?

Yes, absolutely. You’re welcome to use your own equipment as long as it’s compatible with your connection type. We don’t lock you in or force you to use specific hardware. Just keep in mind that our support team can only provide limited help with third-party devices , we can troubleshoot the connection itself and make sure you’re getting the speeds you’re paying for, but we are limited in our troubleshooting for your specific hardware settings or features. For the easiest experience with full support, we recommend using one of our pre-configured options.

3. How do I know if my modem is compatible with my internet plan?

Compatibility depends on your connection type. Different technologies (like connections through phone lines, fibre, or cable) require different types of modems. If you’re bringing your own equipment, check the manufacturer’s specifications to make sure it supports your specific connection technology, or contact us and we can help you figure out if it’ll work. The simplest option? Choose a MATE-supplied modem-router. We’ve already done the compatibility checks for you, and it’s pre-configured to work with your connection type from day one.

4. What’s the difference between Wi-Fi 6 and Wi-Fi 7?

Wi-Fi 7 is the newer standard and offers faster maximum speeds, better performance when you’ve got lots of devices connected at once, and improved reliability in challenging environments with interference. Wi-Fi 6 is still excellent and more than capable for most households, it’s the current widespread standard and handles streaming, gaming, video calls, and smart home devices without issues. The main difference you’d notice is in maximum speeds and how well the network performs when you’ve got 20+ devices all competing for bandwidth. For most people, either standard will work great. Wi-Fi 7 is more about future-proofing than addressing current limitations.

5. Will a modem-router combo work as well as separate devices?

For the vast majority of households, yes. Modern modem-router combos are powerful, reliable, and handle typical internet usage (streaming on multiple devices, gaming, video calls, smart home gadgets) without any issues. Separate devices can offer more flexibility if you want to mix and match high-end components, need very specific advanced features, or have unusual networking requirements, but most people won’t notice a difference in everyday use. The gap in performance between good combo units and separate devices has narrowed significantly in recent years.

6. What happens if my modem-router stops working?

If you’re using a MATE-supplied device and something goes wrong, contact our support team. We’ll troubleshoot with you to figure out if it’s a settings issue, a connection problem, or a hardware fault. If the device needs replacing, we’ll arrange that for you. If you’re using your own equipment, we can help with connection issues and make sure the problem isn’t on our end, but we can’t provide detailed hardware support, you’d need to contact the manufacturer directly or replace the device yourself.

7. Can I use a modem-router in a large house?

It depends on the size and layout of your home. Most modem-routers effectively cover around 100-150 square metres, which works for typical houses and apartments. If you have a very large house, multiple stories, or thick walls that interfere with Wi-Fi signals, you might experience weak coverage in some areas. The good news is that many modern modem-routers (like the TP-Link HB210 Pro we offer) are mesh-ready, which means you can add additional units to extend coverage throughout your home. These create a seamless network that automatically hands your devices off as you move around, eliminating dead spots.

8. Do I need a modem if I have fibre internet?

Yes, but it works a bit differently than with older connection types. With fibre connections, you’ll typically have a device (sometimes called an optical network terminal or ONT) that converts the fibre signal into something your network can use. A modem-router combo designed for fibre connections still handles both the connection to your provider and the distribution of internet to your devices, it’s just built to work with fibre technology instead of older cable or phone line connections. The important thing is making sure your modem-router is compatible with your specific fibre connection type.

9. How long do modem-routers typically last?

A good modem-router should last several years with normal use — typically 3-5 years, sometimes longer. They don’t have many moving parts, so hardware failures are relatively rare. That said, technology does advance, and you might want to upgrade eventually to take advantage of faster Wi-Fi standards (like moving from Wi-Fi 5 to Wi-Fi 6 or Wi-Fi 7), better security features, or improved performance. But there’s no hard expiry date. If your current setup is working well for your needs and handling your speeds without issues, there’s no rush to replace it.

10. What’s the benefit of a pre-configured modem-router?

Pre-configured means it’s already set up to work with your connection type straight out of the box. You don’t have to dig through settings menus, enter technical connection details, configure protocols, or troubleshoot compatibility issues. You plug it into power and your wall connection, and it handles the rest like connecting to your provider, establishing your network, creating your Wi-Fi. It’s the difference between spending ten minutes getting connected and being online, versus spending an hour (or more) fiddling with settings and potentially calling support because something’s not working. Pre-configuration removes all the technical complexity and gets you online immediately.

11. Why does my Wi-Fi seem slower than my internet plan?

This is a common confusion between internet speed and Wi-Fi speed. Your internet plan gives you a maximum speed for data coming from the wider internet into your home. Your Wi-Fi speed is how fast data moves between your devices and your router within your home. Several things can affect Wi-Fi speed: distance from the router (Wi-Fi signals weaken with distance), obstacles like walls or floors, interference from other wireless networks or devices, the capabilities of your device, and how many devices are connected. If you’re getting great speeds on a device plugged directly into the router via Ethernet but slower speeds on Wi-Fi, the issue is your Wi-Fi coverage, not your internet connection.

12. Should I place my modem-router in a specific location?

Yes, placement makes a big difference to Wi-Fi coverage. Ideally, place your modem-router in a central location that’s elevated (like on a shelf rather than on the floor), away from thick walls and metal objects, and not tucked away in a cupboard. Wi-Fi signals spread outward and down more easily than up, so a central, elevated position gives you the best chance of covering your whole home. Also avoid placing it near other electronic devices that might cause interference, like microwaves or baby monitors. If your wall connection point is in an awkward spot, consider using a longer Ethernet cable to position the router more centrally.

Final Thoughts: Keep It Simple

Setting up home internet doesn’t have to be complicated. Understanding the difference between modems, routers, and modem-routers helps you make a smarter choice, but the bottom line is simple: for most households, a modem-router combo is the easiest, most affordable, and most practical option.

The days of needing separate devices and complex configurations are largely behind us. Modern modem-routers pack everything you need into one unit, work straight out of the box, and handle the demands of modern internet use without missing a beat. Streaming, gaming, video calls, smart home devices, they’re built for all of it.

When you choose MATE, we take the guesswork out of it. Our pre-configured, plug-and-play modem-routers are designed to work with your specific connection type, backed by local support, and ready to go straight out of the box.

Whether you’re signing up for the first time, switching providers, or just trying to understand what all this equipment actually does, we’re here to make it simple. That’s what being mates is all about, cutting through the jargon, giving you straightforward options, and making sure you get online without the headaches.

Ready to get connected? Check out MATE’s nbn plans and modem-router options. We’ll get you sorted.

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