Twenty per cent of Aussies would rather starve than go without internet access / AAP Source: AAP

A new survey into the online habits of Australians has also revealed Melbourne is home to the nation's most "connected" households.

More than half the city's homes have more than four internet enabled devices ranging from laptops and iPads to net-connected big screen TVs and videogames consoles.

The statistics, revealed in a major study carried out on behalf of Telstra, come as experts believe the internet is increasingly being viewed as a "fourth utility", ranked equally in importance with gas, power and water.

The survey also found that more than 60 per cent of Victorian homes admit to busting their monthly internet limit and nearly 15 per cent of the state's households fight over hogging the computer and using too much bandwidth, compared with just over 13 per cent who battle for control of the TV remote.

Melbourne is Australia's multi-tasking capital, with almost a third of all homes using more than four internet-connected devices simultaneously and older Australians report owning the most number of PCs, edging out even technology-savvy 18 to 24-year-olds.

Younger Australians by contrast are more likely to use a laptop in the home (88 per cent) compared with 53 per cent of those aged over 65.

Telstra executive director consumer Rebekah O'Flaherty, said it was clear that a fast, reliable internet was becoming entrenched as an essential part of Australians' daily lives.

"I think the internet is becoming a fourth utility," she said.

"We are seeing that now. There's gas, electricity, water and now broadband is really becoming that fourth essential element in the home."

Ms O'Flaherty said there had been a significant increase in activities such as online multiplayer gaming and video streaming, particularly among 16 to 29-year-olds on top of more traditional activities such as accessing news, weather and social networking.

"Clearly the appetite for broadband is only going to increase," she said.

Ms O'Flaherty said it was no surprise the increasing importance of broadband had coincided with the emergence over the past 12 months of new online options.

These range from digital set-top boxes granting access to movies on demand and Telstra's T-Hub touchscreen phone, to Apple's enormously successful iPad.

"With information, entertainment and news being enjoyed across multiple devices in the house, it's not surprising that consumer demand for speed, simplicity and value from their broadband is growing."

In response to this trend, Telstra BigPond has overhauled its broadband plans, slashing rates for new and existing customers by up to 50 per cent.