Modem vs. Router: What's the Difference?

You've probably heard the terms modem and router used interchangeably, but they have very different jobs in your home network. Understanding the difference is key to troubleshooting internet issues and getting the most out of your NBN connection.

The Modem: Your Gateway to the Internet

A modem's job is to translate the internet signal from the outside world into a language your devices can understand. It's the first point of connection to your internet service provider (ISP).

• For FTTN/FTTB: These connections use a VDSL2 modem. This modem is necessary to translate the internet signal coming through the copper phone line into a digital format.

  
  

• For FTTP/FTTC/HFC: These technologies already deliver a digital signal directly to your home. The NBN Co-provided box (known as an NTD or Network Termination Device) acts as the modem. You don't need a separate modem for these connection types, just a router.

  
  

The Router: The Traffic Controller of Your Home Network

A router's job is to manage the flow of data within your home. It takes the internet signal from the modem and distributes it to all your devices, whether by Wi-Fi or with an Ethernet cable. A router is like a traffic controller, directing which data goes to which device.

• For all NBN connections: You will always need a router to share the internet connection with multiple devices in your home.

  
  

Many residential internet plans provide a "modem-router" combo unit that combines both functions into one device. This is why the terms are often confused.

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