For the past few years, I’ve been enjoying FTTP on NBN with Aussie Broadband. I’ve been very happy with their reliable and fast service, while it certainly isn’t the cheapest provider. Today my internet got cheaper with a surprise email from Aussie Broadband informing customers of an upcoming plan change.
The email confirms our current NBN plan, the Home Fast plan which offers 100Mbps down and 20Mbps up, was reduced in cost from $99 to $95. While $4 per month may not be much, seeing service costs reduce is something that’s incredibly rare. Personally, I’m leaning towards upping the plan to the 100/40Mpbs plan which I expect to land fairly close to what we currently pay.
As detailed in the email, NBN’s wholesale pricing has come down, as such Aussie Broadband are passing those savings on to customers, while other Retail Service Providers are making different choices, with some pocketing the difference.
Aussie BB has a great post on SAU, which provides more background on today’s change.
NBN’s Special Access Undertaking (SAU) was established in 2013, when 91% of Australian premises could connect through asymmetric digital subscriber line (ADSL) and Aussie Broadband celebrated connecting their first NBN Point of Interconnect (POI) in regional Victoria.
In an era where more Australians rely on Internet for work, education, and entertainment, its increasingly important to have high-speed, internet plans at affordable prices.
Aussie customers on higher-speed 100/20, 100/40, 250/25, and 1000/50 plans, will enjoy a price reduction come 21 November. These savings have been a result of NBN removing the Connectivity Virtual Circuit (CVC) for these plans. Removing CVC from pricing simplifies how RSPs like Aussie manage the shared resources associated with providing NBN to customers. These changes on higher plans, mean the net wholesale cost to RSPs is lower and Aussie has chosen to pass these through to customers.
Unfortunately, it’s not good news for all. For those on lower 12/1, 25/10, and 50/20 plans, the new wholesale pricing in the SAU means we need to increase the price of these plans by $6 per month.
These plans will still have a CVC charge attached, but now they will be individually charged based on a customer’s usage, rather than pooled to balance higher and lower-end users.
The full email is provided below.
Hi Jason Cartwright,
Your plan price is coming down!
Yep, you read that right - we love passing on the value to our customers and giving them some good news.
From 21 November 2023, your NBN Home Fast (100/20Mbps) Unlimited ($99) plan is coming down to $95.
Why is this happening?
In recent months, you may have heard about the review and variation to NBN’s Special Access Undertaking (SAU).The SAU sets the industry standard for wholesale pricing, including their own structure for NBN plans until 2040.
Throughout the drawn-out process of developing this new SAU, we have been championing our customers, including the need to make high-speed internet more accessible and affordable. NBN’s newly revised SAU supports this, resulting in a reduced cost for our highest speed plans, yours included.
For us, it was a no-brainer to pass the savings onto our customers.
More competitive pricing on higher tier plans allows smaller internet providers, like Aussie Broadband, to continue offering value to our customers. We advocated for this greater competition because we know that that’s what serves all Aussies in the long run. Competition pushes us all to do better for our customers.
If you’d like to know more about the SAU you can read our latest blog post.
What happens next?
Your plan will change automatically from your bill on or after 21 November 2023, and you don't need to do anything else. Any existing promotions or bundle discounts you may have will be honoured – they will just be deducted from the new plan price.
All of our high-speed plans will come down in price from 21 November 2023; feel free to browse all the plans available to you by having a look in the MyAussie app or on the website. You can select a different plan within MyAussie or by calling our Support team on 1300 880 905 at any time.
Cheers,
The Aussie Broadband team
www.aussiebroadband.com.au
Unfortunately, the majority will be paying more for their internet. 50/20Mbps is the most popular plan, sufficient for most households. Pensioners and low-income earners need the Internet just as much as anyone for banking, communication, dealing with government agencies, etc. A minority of users, mostly high-income earners who can afford a faster plan, will get a slight temporary reduction in price. Prices will be going up again on July 1 and every year thereafter. Not good news as far as I am concerned.
Cannot believe this SAU got past the ACCC. It’s a win for certain internet providers who constantly lobby for the most ‘white-box’ product possible, and it puts a small dint in NBN’s cashflow shortfall, but it’s a disaster for the public good. May as well just privatise NBN today and stop considering it an “essential service”.
The AVC+CVC model has had its problems, but that’s because the end price is too high. Instead of simply reducing their pricing, NBN has taken the approach of applying more and more band aids to flatten it out and here we are at its end point: an absolute mess of plans with an eye-watering base price and relatively little surcharge on those who can both afford and want the higher tiers.
It might be forgivable if it actually saved NBN’s business model, but it doesn’t: they’re not getting anywhere near the returns they hoped for, and in residential they never will. And the modest improvement from this regressive pricing will evaporate quickly if low income users drop out (more so) in favour of mobile services or other alternatives, which they probably will. Play stupid games – win stupid prizes
The NBN Wholesale Market Indicators Report published by the ACCC states that more than 80% of services are 50Mbps or slower. That means 4 out of 5 NBN customers cannot justify spending more on faster internet and NBNCo have just increased the prices.
At the end of June 2023, total services were down 0.3% and 1.2% of customers moved to a 25Mbps or slower plan. 80% of NBN customers are being hit with price rises and many of these customers will find 5G cheaper and faster! The 5G providers will be licking their lips with glee.
The tech media cannot see it, because they like their shiny toys.
I’m glad your happy, because us ABB customers who can’t get a high speed tiers due to FTTN restrictions are paying for your price reduction.
And it looks like most RSP’s are charging an extra $5 a month, not $6 like ABB.
Things are not rosey at ABB!
Such a poorly written marketing piece for Aussie Broadband.
Considering most people in Australia have plans below 100/20 … what the hi
Headline should have said was “INTERNET PLANS ACROSS AUSTRALIA HAVE INCREASED DURING A COST OF LIVING CRISIS”
Effecting the lower income earners the most… I’m so happy you think is important to increase your speed from 100/20 to 100/40
Thanks Trevor, you’re welcome to write your own.
With respect I don’t think that’s a fair comment Trevor. Some plans increase and some decrease, I think choosing to only talk about the increase isn’t fair to the companies trying to do something good
Well said Jason. Yes, I will be one of those who has to pay extra but that is not your fault. Your article spelt it out quite clearly that some will benefit & some wont but it’s not the fault of those getting an advantage that others cannot afford a massive $1.50 per week.
Great for a few, not so great for the majority.
I’m on the 50/20 plan but about 3/4km from the node so the maximum estimated speed available to me apparently will be 60-65/23.
I can stay where I am, and pay more, or update to the next plan up, get a tiny amount of speed increase, and again pay more.
Time to find a cheaper ISP. No wonder Australia’s NBN ranks about 60th compared to other countries. It’s a laughing stock.
Nope. Mine went up $6 because I’m on FTTN and can’t get faster than 47Mbps.
But thanks for asking.
Yes, Aussie are great but up $6 a month for us on a slower plan.
NOT happy Jan.
I will be looking around to see if there’s a better deal… but don’t have high hopes. (At least with Aussie you actually get what you pay for, unlike many others!)
Since I wasn’t over paying in the first place, no, the price did not change.
As a low incomer earner I can’t afford 100/20 even at the lower rate. 50/20 was fine for me, especially since I live alone. But now it seems I may have to move to a lower tier.
Living alone you are probably better moving to 5G. Faster and cheaper in many cases.
I currently have ABB’s 100/40 residential plan, plus I pay an extra $5 for a static IP, and I had an email that stated that my plan will drop to $105. Interestingly when checking the plan prices at https://www.aussiebroadband.com.au/internet/nbn-plans/ under “All Plans”, there is no mention I can locate about static IPs being an optional extra in any T&C doco linked off that page (in fact static IPs are not mentioned at all), so I’m curious to find out if the quoted $105/month email price is correct, and inclusive of the static IP, or if it was a generic email that did not include the static IP pricing…. Or if they will actually stop supplying the Static IP completely and forgot to mention that as I have not had any separate communication to state that it will no longer be provided.
nbns 100M prices will increase again in July 2024 and teh ACCC has approved this – Watch Aussie Broadband increase the price again and dissolve any fixx about decreasing prices
Sorry Jason – but that was a fairly tone deaf post…
Sure – I’m happy for the relatively few folk who got a 4% reduction in their ABB Plan but the fact is that the majority of ABB clients are copping a 7% to 8% increase at least.
This is not at all due ABB – rather the majority of us should be blaming (or for the lucky few – thanking) NBNCo.
Thanks NBNCo – the great disabler of fair broadband for all in Australia.
My internet is now the same price as optus/telstra 5g which gets 240/70 minimum.. Why on earth would anyone stay with Aussie on their 50/20 for $85?
With the price rises locked in, we should expect to see mobile providers pushing their products hard.
As customers abandon NBNCo for cheaper and faster 5G, prices will need to rise further as the bulk of costs are fixed. This will start a vicious circle as higher prices will cause more customers to leave.
Yep, another squeezed customer here. Thanks NBNco
ABB FW Plus Unlimited product is going from $79 to $85 per month. It’s not like we have any kind of speed choice.. or a technology choice for that matter. It’s just a case of “pay more”, and be happy that you’ve got a connection (even if literally every block around you has the ability to jump to FTTH).