As foreshadowed in my previous articles the new National Broadband Network (NBN) wholesale agreements as have been under discussion for many years were approved by the Australian Competition and Consumer Commission (ACCC). Under that agreement the NBN company is now able to increase it prices for its lower tier products, while at the same time they introduced a small price decrease for the higher tier products.
As a consequence, the agreement is now leading to price adjustments in NBN plans offered by major providers such as Telstra, Optus, Foxtel, and Aussie Broadband.
The NBN’s new pricing agreement, set to take effect from December 1. This agreement aims to reshape the pricing structure of NBN plans and the rules that govern how providers access the network. Under this new structure, wholesale prices for most NBN plans will be reduced, except for one exception.
Telstra has announced price adjustments for several of its NBN plans. Telstra’s basic NBN 25 plan will increase by $5 per month, affecting a significant portion of their customer base. However, they have also taken measures to protect vulnerable customers by keeping Voice plan and starter internet plan prices stable. In contrast, Telstra’s ultimate NBN 250 plan will see a decrease of $6 per month, which is a welcome change for those seeking higher speeds.
Optus has announced a $5 monthly increase for some of its existing customers. These adjustments are in response to the increased costs associated with supplying NBN services. Optus is among the providers paying more to deliver NBN services, and the adjustments are seen as necessary to balance these costs.
Foxtel, known for its television services, has also increased the prices of its NBN plans. Their NBN 50 plan saw a price increase of $10 per month, and the NBN 100 plan increased by $5 per month. These adjustments are likely to affect a significant number of their customers. So far its increase is the largest in the country.
Aussie Broadband, a notable Australian ISP known for its customer-centric approach, has decided to increase the prices of its NBN 12, 25, and 50 Mbps plans by $6 per month. Conversely, prices for higher-speed plans of 100 Mbps and above are expected to drop.
The NBN’s new pricing structure is expected to have various impacts on consumers. As a whole, Aussies spend an average of $78 per month on their broadband plans, as indicated by recent Finder data. However, there’s a widespread sentiment among users that they may not be getting good value for their money. Approximately 22% of users believe they are not receiving good value for their broadband plans, and 10% are dissatisfied with their broadband speed. Surprisingly, only 13% have switched plans in the past six months despite their dissatisfaction.
I would most certainly encourage people to review their current internet plans, particularly in light of the upcoming pricing changes. December will be an ideal time to compare NBN plans as it will provide a clearer picture of the prices offered by different NBN providers.
An important factor to note is that the new pricing structure is likely to lead to price hikes for low-speed plans, such as NBN 50. As a result, the difference in price between NBN 50 plans and NBN 100 plans may become smaller. In essence, consumers should expect that lower-speed NBN plans will see price increases, making it essential to reassess their internet needs and consider switching plans accordingly.
In addition to the pricing adjustments, consumers are encouraged to take advantage of any discounts and incentives offered by NBN providers in the coming months. Many providers may offer options like ‘bring your own modem,’ making it easier for users to switch NBN plans. Once users have compared their options, the process of switching providers typically only takes a few minutes, making it a relatively hassle-free way to find the best plan for their needs.