Will nbn Price Increase or Decrease under New SAU?

Low Punt on 20/10/2023 - 19:37
Last edited 20/10/2023 - 21:29 by 1 other user

I read the OzB post for Aussie broadband and noted the cheapest tiers are going up while more expensive are coming down.

I then stumbled across this article:
https://ia.acs.org.au/article/2023/basic-and-fastest-nbn-ser….

Which suggest all tiers are coming down in price.

“ ISPs will have more room for profit margins and discounting when NBN Co drops the wholesale price of entry-level 12Mbps services to $24.40 per month – 25Mbps services will cost $26, while popular 50Mbps services will cost at least $50 – and NBN Co will only charge them CVC for the amount of bandwidth that is used, rather than forcing ISPs to prepurchase capacity based on guesses about how much they will need.”

So, how will this play out in the real world?

Internet Broadband nbn

Comments

HardQuiz on 20/10/2023 - 19:49

Yes
GordonD on 20/10/2023 - 20:11

+3

You have to read what they say. They don't lie. They just hide behind words.

When they say prices will be lower, its not compared with what they are now, its compared with what they would have increased to. Prices will be lower than they would have increased to, but higher than now, and will keep steadily increasing every year.

Basically what happened was NONE of the retailers agreed to what NBN was saying the prices were going to be, and went to the regulator, who told NBN to make a better deal. NBN kept offering different deals that had different benefits in terms of prices and data inclusion. It went round and round and round until the retailers could see there was going to be a huge catchup price increase, so they surrendered to the deal NBN was offering to get the matter settled. They don't like it, but they don't want to be forced to pass on a big price increase to their customers. This is what happens when you have a monopoly supplier.

NBN has got big debts. It NEEDS to increase its revenue, and keep increasing it by eliminating the lower speed plans or making them risky to the retailers so they don't offer them, and by persuading people to jump to the next higher speed by offering it at the smallest possible price increase. The retailers see the result of that is to drive people away to alternatives like 5G.
- AustriaBargain on 20/10/2023 - 20:25
  
  +2
  
  Yes, this is business 101. You can increase your total profits by lowering prices and selling more. If everyone just gets the cheapest tiers, or no nbn at all, then you aren't really making much money. If everyone was on the medium or high tiers then even if the wholesale price was lowered, NBN Co would still be making more. People aren't smart enough to realise that they need higher tiers to fully enjoy 4K streaming and stuff in a multi user household, so lowering prices can get more people on these plans. I think it's a little silly how they priced it, people with fibre to their home on 12/2 kinds of speeds is stupid. Even offering those kind of speeds to someone with a fibre line is stupid, those speeds should be reserved for Coalition NBN on rusted copper.
- Low Punt on 22/10/2023 - 22:23
  
  Thank you. Succinct reply!
apsilon on 20/10/2023 - 20:28

+1

Just got an email from ABB. They're increasing the price of some plans from 21st Nov. so I'd say yes.
Twix on 20/10/2023 - 20:35

+1

So far ISPs have made 12/1, 25/5, 25/10 and 50/20 $5 or $6 extra per month. 100/20, 100/40, 250/25 and 1000/50 gets $4 to $20 per month cheaper. There are ISPs that will stop selling 12/1, 25/5 and 25/10 altogether.
- endotherm on 20/10/2023 - 22:52
  
  Where did you hear this? On Optus 100/40, mine has just gone UP $5.
  - apsilon on 21/10/2023 - 06:16
    
    It's up to the ISP. Aussie are lowering the price on the 100/20 plan and above.
  - Twix on 21/10/2023 - 22:44
    
    Various ISPs websites that updated yesterday. 100/40 shouldn't go up. How much are you paying?
    - endotherm on 22/10/2023 - 02:15
      
      $90 increased to $95.
jeeg on 20/10/2023 - 21:39

I am on 50/20 with ABB.

So 50/20 on ABB is now $85. Add another $4 this will get 75/20 as there is no changes in price for this tier. Does it therefore make sense to just pay another $4 to get 75/20? i.e. pay $10 to get a price boost rather than pay $6 and get no price boost?
- AngoraFish on 20/10/2023 - 22:51
  
  +1
  
  If you're happy with your current speed it's very unlikely that you'll notice a higher speed. Save your $4 a month.
  - jeeg on 20/10/2023 - 23:06
    
    thanks mate.
OMGJL on 21/10/2023 - 02:17

thing is, you can easily get 300+mbps on 5G right now (at the cost of CG-NAT), I do understand that the ping/speed could fluctuate bit more on 5G than fiber, but FFS triple the speed for similar price,

and you can place your router to any spot (near your computer and have LAN straight into the PC/PS5 without needing to cable up your house)

i'd say at least offer 250mbps NBN for the same price as 5G broadband ($85/month) and then we can talk.
- bathuu on 21/10/2023 - 06:43
  
  Any way to get own ip on 5G?
  - OMGJL on 21/10/2023 - 22:21
    
    vps+FRP is one way of doing it
- Low Punt on 22/10/2023 - 22:25
  
  Unfortunately still allot more than my nbn. I’d jump on 5g if it was 50-60
USER DC on 21/10/2023 - 04:26

I am just so glad I aint gotta worry about nbn pricings till I am connected to 5G for cheap
LanceMuscles on 21/10/2023 - 06:43

ABB, my 1000/50 tier price is coming down $20
ECE on 21/10/2023 - 22:50

Who will be the cheapest NBN provider now?
- infinite on 22/10/2023 - 22:00
  
  +1
  
  No one provider is better than all the rest. Each provider usually tends to have a sweet spot for very good value at one specific speed offering though.
  
  It's a process of deciding what download and upload speeds you need or want, then sifting through the competition to find who offers the best value service at the speed you desire.
Central Intelligence on 23/10/2023 - 14:54

Sadly, the status quo of lower price plans subsidising the higher priced plans still persists and has gotten even worse.

It costs $55 for a NBN 50 plan wholesale at the higher end of the pricing tiers, and a 1000/50 plan only costs $70.
We all know who is making bank, it's the dodgy telcos.

I for one think we should all be dumped onto a 1000/50 for everyone, that way we all have some consistent pricing structure. Higher usage users will still be subsidised by lower usage users but that possibility for bursting will now exist for everyone which would be something that should be preferable.
- internet-stranger on 23/10/2023 - 14:56
  
  Other way around. Even though cheaper plans cost less they had less CVC (bandwidth) than the higher plans. So the high speed plans watching Netflix at night (low bandwidth usage) were actually subsidising the lower plans.
  
  Edit: to clarify, under new pricing high speed plans have no CVC limits (great for big users) but now the extra CVC can’t be used to subsidise the lower plans.
  - Central Intelligence on 23/10/2023 - 14:58
    
    No, it's always been the lower users subsidising the higher end users.
    
    You need to understand the marketing techniques used by the RSPs.
    
    If you do the math, you can see it will always be cheaper and you can fund 20 50mbps clients for every 1000mbps client after taking into account overheads such as backhaul. Does that extra $15 a month really pay off that extra overhead on the extra 950mbps? It doesn't. lol. You can't argue it.
    
    My guess is you were indoctrinated by the gimmicks by Damien from Launtel.
    
    Someone who buys the 1000mbps plan is more likely to utilise it, needing almost all that bandwidth when downloading from something such as Steam. They are more likely to be a power user than someone who is leeching at 25/5. That 25/5 leech is actually a myth perpetuated by some RSPs.
    
    Not only it is likely to be a myth, but it would be damn painful to be downloading 24/7 on such a low speed… No offence. I think we all agree on that.
    - internet-stranger on 23/10/2023 - 15:31
      
      There are 2 costs for an RSP,
      The connection and the CVC.
      The connections came bundled with CVC, now fast ones aren’t bundled so you can’t share the CVC.
      Either way slower plans are going up. Faster plans are going down. All NBNCo plan.
orangecarpet-22 on 23/10/2023 - 23:16

Seeing gigabit pop up for a crisp hundy around a few providers now. Happy with that. 109 was the old price.

For the sake of a few bucks a month really at the end of the day I’ll take gigabit now. Used to be 100.
poisongodmachine on 24/10/2023 - 00:11

Does anyone know if the Vocus network is any good? Dodo's prices are pretty good, so I'm considering them.
- shutuptakemymoney101 on 31/10/2023 - 07:47
  
  +1
  
  Dodo's died out for a reason and Vocus o/s speeds generally aren't the best.
  
  Have a look at LeapTel instead https://leaptel.com.au/
  
  When you leave Dodo and they continue to bill you for the next 6 months you'll be kicking yourself for even considering them.
- Chaddy on 03/11/2023 - 18:16
  
  Vocus have an OK network providing your not on a conjested POI and providing they don't connect to an overseas provider with conjestion some of their international links are not great they use Hurricane Electric in a lot of places.
  Leaptel use Vocus domestically and GSL for international which will work out ok if your a gamer.
Toph Beifong on 01/11/2023 - 00:13

“ ISPs will have more room for profit margins"

You're not wrong here. I've received an email from tangerine today informing me of a $5/month increase on a 25/5 NBN plan. Will now cost $65/month
cloudy on 03/11/2023 - 07:20

My isp is upped me $5 too, we’re no longer good MATES
Chaddy on 03/11/2023 - 18:10

Profit margins won't increase that much for ISPs, as CVC remains for the lower speed plans and NBN Co is also increasing pricing on those. So realistically profits won't increase that much.
All other pricing such as power and Colocation fees in the Datacentres is going up as well not to mention software costs for various things. So overall this won't have much impact.
It will make internet more expensive for low budget households who just want a basic connection and it will push business users who need the 1GBPS plans onto longer term contracts as it will be cheaper to go for the 1000GBPS Symmetrical plan then the 1000/400 plan that some businessses would of got away with.
USER DC on 13/11/2023 - 21:36

https://youtu.be/cooIUVQ-Bh8?feature=shared

There you go increase there

Nbn totally crap again better move off to 5g if available

Will nbn Price Increase or Decrease under New SAU?

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