The cost of being connected to the NBN has never gone up before.
But now, most Australian households are about to receive price hikes as high as $120 a year (about 20 per cent extra for some), and it comes at a time when energy, insurance, petrol and grocery prices are already soaring.
We need another price increase like a hole in the head. Some families simply won’t be able to afford it, but there are some things you can do to stay connected.
The NBN price rises are the result of a new pricing agreement between NBNCo and retailers.
Even though the new agreement has cut the wholesale price of most plans, it increased the wholesale price of the most popular type of plan in the country, known as “standard NBN”.
At least four internet providers have already announced price rises of $60-$120 a year on standard and basic NBN plans, with more – and maybe all – expected to follow.
Some providers, such as Telstra, Foxtel and Aussie Broadband, are increasing prices for existing customers and new customers, while some such as Optus are limiting it to new customers.
About 3.8 million Australian homes are on standard plans and 1.5 million are on basic ones, according to the ACCC.
They make up 44 per cent and 18 per cent of NBN subscribers respectively.
The ACCC has warned that retailers could push customers to take up higher-speed plans, some of which will drop in price as a result of the new agreement (although they’ll still cost more than standard and basic plans).
So I teamed up with the leading telco comparison website Whistleout.com.au to monitor the price hikes and outline the options for households.
Here are the price rises announced so far:
|
Provider |
25Mbps basic plan |
50Mbps standard plan |
|
Telstra |
Up $60/year |
Up $60/year |
|
Optus |
Up $12/year |
Up $72/year |
|
Foxtel |
Up $120/year |
Up $120/year |
|
Aussie Broadband |
Up $72/year |
Up $72/year |
But there are money-saving options out there:
-
Switch. It’s not clear how many providers will increase their prices yet but there is currently over $300 difference per annum between the cheapest and most expensive standard NBN plans.
-
Ditch the NBN. Many providers now offer home wireless broadband that uses the 4G and 5G networks and doesn’t require a technician to connect, from around $60/month.
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Downgrade from standard to basic. The ACCC advises that “less expensive 25Mbps speed plans allow households to access most online applications, including high-definition streaming applications. Depending on the number of people online at the same time, many households could find that a 25Mbps plan offers good value for them”.
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Upgrade – only if you can afford it. The price gap between standard and fast NBN plans will now be closer, making fast NBN better value for money than previously.
Joel Gibson is the author of Easy Money and Kill Bills. Whistleout.com.au is Australia’s No.1 telco comparison website. Together, they’ve launched a campaign to identify money-saving opportunities for Australian mobile and internet users.
