Telstra raises NBN plan prices alongside Optus and more – who’s next?
Telstra will be raising the price of its NBN 25 and NBN 50 plans by $5 a month from 1 November 2023.
We've already gone through a round of mobile plan prices going up this year, and now things are looking a bit bleak for internet costs, because life isn't expensive already.
New Telstra NBN prices
Telstra will be raising the price of both its Basic (NBN 25) and Essential (NBN 50) plans by $5 a month from 1 November for both new and existing customers.
Here's a look at before and after costs.
|Plan||Current price||New price from 1 Nov|
|Basic (NBN 25)||$80 a month||$85 a month|
|Essential (NBN 50)||$95 a month||$100 a month|
However, its NBN 250 plan will go down in price by $5 a month and will cost $135 a month from 1 November.
Who else has already raised NBN plan prices?
Unfortunately, Telstra isn't the only telco to hike up prices.
The following providers made their own moves or will be making them very soon:
- Optus: Increased NBN 25 and NBN 50 prices for new customers by $1 and $6 a month respectively. They now cost $70 a month and $85 a month. Optus's NBN 50 Family Entertainer plan was also impacted, with a $6 a month increase and now costs $105 a month.
- Belong: Increased price of its NBN 50 plan by $5 a month. It now costs $80 a month.
- Foxtel: Will be increasing the price of its NBN 50 plan by $10 a month from 10 October. It will soon cost $85 a month.
- MATE. Increased prices by $6-$11 across all its NBN plans, except for its new entry level plan.
- Tangerine. Promotional price has increased by $5 a month on NBN 25, but decreased by $10 a month on NBN 250 and NBN 1000 plans.
We'll explain in just a second why NBN prices are going up, but keep in mind it's likely that other providers will follow suit and the list will grow longer before the year's end.
Why are NBN plan prices going up?
Understanding a bit of the industry jargon might shed light on why households are being hit by NBN price hikes, such as Special Access Undertaking (SAU).
The SAU is a key part of NBN's regulatory framework, as it determines both price (such as wholesale costs) and non-price related terms and conditions.
These dictate how broadband providers will access the NBN in the coming decades.
Currently, NBN Co and the Australian Competition Consumer Commission (ACCC) have been see-sawing between sending and rejecting proposals for a new SAU. However, we're expecting a final decision to be made around December 2023.
"We held off changing our prices until the new NBN SAU was lodged so we could get greater certainty," a Telstra spokesperson told Finder.
That has now happened and with NBN expected to implement pricing changes in the near future, plus our own increased business costs, we believe now is the right time for us to look at our plans and make some changes which respond to this and improve the economics of our fixed business.
Why has NBN 50 been impacted the worst?
NBN 50 is the most popular speed tier, used by 44.2% of Aussies according to the ACCC. However, its popularity has gone done from the previous quarter, where the figure sat at 52%.
From the price movements we're seeing, it appears that NBN 50 plans will be impacted the worst with the upcoming SAU and this quote from NBN can explain why.
The new SAU is a "new approach to wholesale pricing to support faster internet speeds, greater data demand, and improved cost certainty for retailers and customers".
It also aligns with NBN rolling out its fibre upgrade program replacing ageing copper. Eligible households will need to sign up to an NBN 100, NBN 250 or NBN 1000 plan to trigger the upgrade.
That means the NBN is trying to make faster speed tiers more attractive to consumers so they will sign up to them, which could explain why price rises are mostly impacting NBN 50 plans.