NBN price changes mean pain for some, savings on fast internet

Thanks to NBN wholesale price structure changes, you soon might be paying less for fast internet, while others struggle with higher costs.

It follows the Australian Competition and Consumer Commission (ACCC) accepting the latest Special Access Undertaking (SAU) variation from NBN Co. In a long and drawn-out process, prior SAU proposals were rejected and labelled “not acceptable” by Communications Minister Michelle Rowland partly due to fears over privatisation.

Under the agreed SAU changes, wholesale prices will be reduced for 25 Mbps and 100 Mbps or faster internet services. Meanwhile, 50 Mbps wholesale prices will increase. It’ll be up to internet service providers (ISPs) to determine how they pass costs or savings onto consumers.

NBN price changes: how they impact you

Aussie Broadband is one of the first local telcos to make changes to its pricing structure following the SAU change. Lower-speed NBN plans up to its 50/20 product will cost $6 more per month starting on 21 November.

Source: Aussie Broadband.

According to Phillip Britt, Aussie Broadband Managing Director, this is because of changes to the Connectivity Virtual Circuit (CVC) charge. Faster plans no longer incur this charge, but slower plans are now charged per individual, based on usage. Previously, it was based on a shared usage pool, where it evened out between high-usage individuals and those on the opposite end of the spectrum.

“By not only continuing to charge CVC, but doing so on an individual basis, the NBN has effectively forced our hand to raise prices for the majority of our broadband customers – and at a time of heightened financial uncertainty,” Britt said.

Also mentioned by Britt is that 50/20 plan accounts for approximately 45 per cent of the market. With phone bills also costing more across the board, it spells extra financial stress for people trying to save money on lower-speed plans.

There is good news for those on faster plans, however. Aussie Broadband’s revised pricing means that customers on 100/20 plans and above will save between $4 and $20 per month. The transition to the new wholesale pricing structure will begin over the next three months, so expect to see more ISPs follow with revised pricing soon.

Keep an eye out for the cheapest NBN plans over the coming months to make sure you’re paying the best price.

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