All Telstra internet plans going contract-free, but bundles will be pricier

By Jacqui Dent

Last updated 19 February 2019

Telstra has today announced a major overhaul of its NBN, ADSL and cable internet plans. Plan options have been cut from six to just two with no lock-in contract and reduced set-up fees. However, entertainment and smart home bundles have been axed, replaced by a mix-and-match structure that will make these extras more expensive.

Here are Telstra's two new plans for NBN, ADSL and cable customers:

Essential Internet Plan - $70 per month with 100GB of data and Standard speeds ( max 25 Mbps) for NBN customers
Unlimited Internet Plan - $90 per month with unlimited data and Standard Plus speeds (max 50Mbps) for NBN customers

Both plans come with an upfront $99 connection charge. NBN customers can also upgrade to a Premium speed plan (max speed 100Mbps) for an extra $20 on top of the Unlimited plan. Telstra's speed boost to NBN 100 was previously an extra $30 on top.

Telstra's new plans will come with a Telstra Smart Modem (2nd generation) valued at $216. The modem is free with either plan as long as customers stay with Telstra for 24 months or longer. If customers choose to leave Telstra earlier, they will need pay out the pro-rated value of the modem.

In this regard, Telstra's new plans closely resemble NBN plans offered by Vodafone. Both telcos' modems even come with 4G back-up in case of a connection failure. But of course, Vodafone's plans are a little cheaper.

The new Telstra broadband plans will be available to both new and returning Telstra customers from Tuesday 26 February.

Cheaper no-contract sign up but pricier bundles

The two new plans are identical in many ways to two of Telstra's current plans known as the "Essential Bundle" ($69) and "Unlimited Bundle" ($89). They cost pretty much the same, come with the same data allowance and the same speeds for NBN customers.

But whereas previously customers wanting to go no-contract had to pay a $240 upfront connection fee, they will now only pay a $99 connection fee. This is the same fee a customer signing up today would pay for a 24-month contract.

However, Telstra is now splitting out all optional extras like streaming subscriptions and smart home kits as stand-alone units to be added to any plan. This has had the effect of making current bundles more expensive.

For example, while previously customers could add a Telstra TV set-top box and 24-month subscription to Foxtel Now's starter pack onto their Unlimited plan for an extra $10, these inclusions now cost an additional $9 and $25 per month respectively. What this means is that a customer signing up for a Telstra plan next Tuesday will pay $124 per month for the same entertainment bundle that costs $99 today.

It gets more expensive if you were looking at the smart home bundle. This package which includes the Unlimited plan, a Telstra TV 2, a Foxtel Now starter pack and a smart home kit costs $124 today. These inclusions will come to a total of $149 as of next Tuesday, with the smart home kit becoming a stand-alone optional extra on plans for $25 per month.

If you were looking at either of these bundles, you'll have to sign up before next Tuesday to get the cheaper price. But you will have to commit to a 24-month contract.

Customers can also add a Kayo subscription to their broadband bill for the sports streaming service's standard price of $25 per month.

New Telstra TV and re-branded home movie service

Along with the new plans, Telstra has launched its third generation Telstra TV set-top box. The new Telstra TV 3 comes with a wireless remote control that now allows voice search and comes with buttons to control your TV's power and volume, which is certainly a bit easier than fumbling with two separate remotes.

As mentioned above, the Telstra TV 3 will be available to bundle with either of Telstra's new plans for an extra $9 per month over 24 months, or you can buy it outright for $216.

On top of the revamped device, Telstra is rebranding Bigpond Movies. The service that lets you buy or rent new release movies and add the cost to your monthly Telstra bill will now be known as Telstra TV Box Office. And for a limited time, Telstra is offering a $125 Box Office credit to those customers who bundle the Telstra TV 3 to their plan.

Telstra will also be waiving $99 connection fees on the new plans from February 26 - for a limited time.