Millions of households are paying more to use the internet after almost half of Australia’s NBN providers hiked prices after an increase to wholesale costs, but Canstar Blue research shows switching to a cheaper provider could save more than $300 per year.
Recent price adjustments from NBN Co., effective from July 1, have seen an increase to plan wholesale costs by up to $1.71 a month. Retailers can choose whether to pass the costs on to customers, with not all providers choosing to do so, or having done so, yet.
Big three providers pass on price hikes, but not to all plans
Australia’s three major NBN providers, Telstra, Optus and TPG, which have a combined market share of 70%, all increased their NBN pricing across plans by up to $9 per month, although some plans did not change, and some even dropped.
A number of retailers have not passed on the cost increases, including Southern Phone, Swoop, and Amaysim, while some retailers have only changed pricing on select plans.
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| NBN Co. & big three provider price changes (monthly) | ||||
|---|---|---|---|---|
| Plan | NBN Co. | Telstra | TPG | Optus |
| Basic (NBN 12) | – | – | +$4 | – |
| Standard (NBN 25) | +$0.68 | +$4 | +$9 | +$4 |
| Standard Plus (NBN 50) | +$1.60 | +$4 | +$9 | +$4 |
| Premium (NBN 100) | +$1.31 | +$3 | +$4 | – |
| Superfast (NBN 250) | +$1.71 | -$1 | +$4 | – |
| Ultrafast (NBN 1000) | +$1.71 | -$11 | – | – |
Source: Canstar Blue
Savings of $300+ if switching from average to lowest priced plan
High quality NBN plans don’t have to come at a high price, with Canstar Blue research showing households can switch from the average priced plan, to the lowest, and save hundreds of dollars a year.
The most popular NBN tier, NBN 50/20, has a price difference of $27 between the average and lowest priced plans (excluding discounts), which totals a $325 saving over a year.
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| Average price vs lowest price NBN plan | ||||
| Tier | Average monthly cost | Lowest monthly cost | Difference (monthly) | Total difference (annual) |
|---|---|---|---|---|
| Basic (NBN 12) | $65 | $50 | -$15 | -$180 |
| Standard (NBN 25) | $71 | $59 | -$12 | -$144 |
| Standard Plus (NBN 50) | $92 | $65 | -$27 | -$325 |
| Premium (NBN 100) | $92 | $80 | -$12 | -$144 |
| Superfast (NBN 250) | $112 | $95 | -$17 | -$205 |
| Ultrafast (NBN 1000) | $120 | $99 | -$21 | -$252 |
Source: Canstar Blue. Data based on plans available on Canstar Blue database. Does not include discounts.
Upgraded NBN tiers could shake plans up
NBN Co. has announced it is planning to increase maximum wholesale download and upload speeds on selected tiers, a move that will allow eligible customers to access even faster home internet.
Set to launch in September, the changes will see the current fastest maximum download speed double from 1000 megabits per second (Mbps) to 2000 Mbps. Alongside this, new 500/50 Mbps, 750/50 Mbps and 1000/100 Mbps speeds will also be available.
Availability and pricing has yet to be confirmed, however households interested in a speed upgrade will also need to be on a compatible NBN technology type: either Fibre to the Premises (FTTP) or Hybrid Fibre Coaxial (HFC).
Some households may be eligible to upgrade to FTTP for free as part of NBN Co’s fibre rollout program, but a faster speed tier will likely mean they’ll pay a bigger monthly bill.
What NBN speed tier is best for the average household?
Knowing the NBN speed tier most suitable for a household is an important step in finding the best and most competitive plan available.
The most popular NBN plans are the Standard Plus (NBN 50) and Premium (NBN 100), however each household should review their previous bills and activity to better understand what may suit them best.
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| Understanding NBN tiers | |||
|---|---|---|---|
| Plan | Max speed (Mbps) | Best suited for | |
| Upload | Download | ||
| Basic (NBN 12) | 12 | 1 | 1-2 people, web browsing |
| Standard (NBN 25) | 25 | 5 | 2-3 people, streaming, video calls |
| Standard Plus (NBN 50) | 50 | 20 | 3-5 people, remote work, streaming |
| Premium (NBN 100) | 100 | 20 | 5+ people, streaming, video calls |
| Superfast (NBN 250) | 250 | 25 | 5+ people, gamers |
| Ultrafast (NBN 1000) | 1000 | 50 | 5+ people, heavy users |
Source: Canstar Blue
Canstar Blue Utilities Editor, Tara Donnelly, says, “At a time of increased cost of living, there’s no doubt news that it will cost more just to access the internet would be hard to hear for plenty of households around Australia.
“While it might seem easier for some to just accept the increase, taking 10 minutes to review what they’re currently paying against competitive offers in the market could mean switching to a better plan that may save hundreds of dollars.
“NBN Co’s decision to offer faster wholesale speeds is based on retailer demand, as well as the increase in Aussie households moving to NBN connection types that are able to support super gigabit-speed plans.
“These accelerated speeds will help future-proof the network and support the growing data consumption and bandwidth needs of Australians.
“However, customers should keep in mind that these changes are at a wholesale level, so it’s up to retailers to decide how they pass them on to households and businesses – including how much more these plans will cost.”
Visit Canstar Blue to view customer satisfaction research and ratings for more than 1,800 brands across 300 consumer products and services categories.
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