Just when we thought NBN prices were settling down after months of changes, NBN Co has thought otherwise. The company has recently announced its new wholesale pricing structure for FY25, which will see prices rise across most NBN speed tiers from July 1, 2024.
The new structure lays the groundwork for costs that internet service providers (ISPs) will pay for NBN plans. The changes introduce price increases for speed tiers ranging from 25Mbps (Basic II) to 1,000Mbps (Ultrafast), with plans rising around AU$2 to AU$3. Despite no confirmation from ISPs or NBN Co, we can safely assume these extra costs will be passed on to customers.
After the last wholesale changes in December 2023, which aimed to bring down costs of NBN plans above 100Mbps to encourage consumers to jump ship to faster speeds, this new pricing structure isn't quite a surprise. NBN Co previously flagged that changes were coming, but did not provide details of their impact on providers and, inevitably, consumers.
While these price changes are annoying, fortunately, it's only a few extra dollars in the long run. Currently, no providers have announced any planned changes yet, but come July, we are bound to notice increases across the board. Based on previous wholesale changes, we anticipate most plans will increase by an average of AU$5; however, individual providers may adjust pricing according to their needs. As always, we will keep our NBN guides up to date when the time comes.
Biggest impacts on popular plans
According to ACCC data, Australia's most popular NBN speed tier is NBN 50, with 4.45 million active services as of December 2023. After changes last year that saw prices on the cheaper end of the spectrum increase — i.e. NBN 25 and NBN 50 plans — and top tier plans decline — i.e. NBN 100 and above — some residences nationwide are likely feeling a pinch.
In our research, we've noticed several fluctuations in the NBN 50 tier and recorded an increase of AU$3.60 in the last nine months, whereas NBN 25 plans have gone up by 41 cents in that time.
NBN Co's chief customer officer Anna Perrin noted that these increases could be a concern for customers, particularly considering the cost of living pressures. "In response, NBN’s wholesale price adjustments will help to ensure we can continue to invest in the network to improve its speed, capacity, and reliability for the benefit of all Australians," Perrin said in a statement.
Even though the new changes will be relatively minuscule, every dollar counts when choosing a cheap NBN plan. Here at Tom's Guide, we know how important it is to find the best NBN deal that offers you great value for your hard-earned cash. To get ahead of the curve, and lock in a great deal before the inescapable price increase, we've rounded up some of the best cheap NBN plans, especially for those seeking a lower speed tier.
NBN 25
NBN 50
NBN 100
If you're keen to try some faster plans from the most popular providers, check out the deals in the widget below:
