
After a long wait, the Australian Competition and Consumer Commission (ACCC) has finally approved NBN Co's variation to its Special Access Undertaking (SAU).
The SAU is part of the framework that determines how the NBN operates. Importantly, this includes wholesale pricing which has an impact on what NBN providers charge customers to get connected.
This time around the price of some speed tiers are going down while another will go up. NBN Co says it is planning to implement the new price structure and products on December 1, 2023.
What's actually changing?
The new SAU should bring stability to the pricing model and will somewhat shield consumers from all too familiar price hikes.
Some of the more important changes include:
- NBN Co's annual wholesale price increase limited to no more than the change in the consumer price index
- Wholesale prices for NBN 25 and NBN 100 or faster speed tiers will be reduced
- Wholesale prices for NBN 50 plans will see a slight increase
- A new basic voice and data service will be offered at half the price of NBN Co's existing entry-level plan
ACCC Commissioner Anna Brakey said, "We are satisfied that NBN Co’s latest SAU variation proposal promotes the long-term interests of Australians, which is the primary objective of the test that we have to apply".
When will the new NBN pricing take effect?
The proposed changes had been a long time coming. The process for this variation started in March 2022 and involved a drawn-out back and forth with withdrawals, further lodgements, draft rejections etc.
Telcos have known about this for some time. Major telcos such as Optus and Telstra have already adjusted their prices and more NBN providers should soon follow suit.
The NBN plan market has been steadily changing. Early, this year the ACCC reported that more households were opting for slower NBN 25 plans. At the same time, there was a trend in households moving up to faster NBN 250 and NBN 1000 speed tiers.
Since the ACCC's NBN Wholesale Market Indicator Report in September, these trends have continued with the NBN 50 speed tier falling in popularity from 52% of NBN users in March 2023 to 44.2% in June.
This price structure should remain in place until 2030 when NBN Co's revenue is expected to become more efficient.
Should you switch from NBN 50?
What made NBN 50 so popular was that it largely represented good value for money - a fair price for decent speeds.
However, since the pandemic has shifted attitudes to working from home there are more households that find themselves with the need for faster internet speeds. An NBN 100 plan can provide a significant boost even in a single-person household. At the moment with sign-up deals you're looking at a $10 price difference for significantly faster speeds. Soon that gap may close and make upgrading even more enticing.
At the same time, cost of living pressures are hitting hard. If you don't work from home and are you looking to make a switch to a cheaper plan it might be worth holding off for now.
The drop in speed from a maximum 50Mbps to a maximum of 25Mbps can be harsh, especially with the reality of typical evening speeds. At the moment there's less than a $5 difference between the price of the cheapest NBN 50 and NBN 25 plans.
You can compare prices across speed tiers here:
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