NBN Slashing Prices By a Quarter In 2018 for Faster Internet
The NBN has revealed it will be cutting its current prices by a quarter beginning next year in an attempt to improve broadband speed and service for end users.
The new prices will be put into affect in the second quarter of next year. This move means for customers NBN will be bundle access and bandwidth charges for its higher speed plans under what the NBN says is a simple pricing structure.
The changes will be made to the company’s fixed line access network.
The company plans to introduce a new NBN 50 wholesale bundle charged at $45 a month with 2Mbps of bandwidth included and a new NBN 100 wholesale bundle at $65 a month with 2.5Mbps capacity included.
Previously, the company says the static access charge and the fluid capacity charge made up a two-part pricing model that had seen some retailers under-provision bandwidth, which was impacting end user speeds during peak download times.
Bill Morrow, co-chief executive at NBN says, “Today, more than 80 per cent of end users are on plans based on the NBN 25 wholesale speed tier or lower but we want all Australians to experience the benefits of fast broadband and the economic growth, job creation, and social inclusion that it unlocks.
“Combining access and bandwidth charges into one simple price point will not only promote the take-up of plans based on higher wholesale speed tiers and position the NBN 50 bundle as our flagship service, but it will also trigger the triple benefit of improved end user experiences, provide more affordable pricing options for retailers and support NBN Co’s revenues in the longer term.”
NBN says the changes are expected to also result in significant savings for NBN Co’s wholesale customers with the new NBN 50 bundle representing a potential discount of 27 per cent while the NBN 100 bundle could save retailers 10 per cent when compared to current average prices across the industry.
Until the new pricing structure goes live and to help transition retailers to the new pricing options, NBN Co is also introducing a promotion that will see the NBN 50 wholesale service sold for the same access price as the NBN 25 service with a boost of 50 per cent additional bandwidth.
While these new plans are designed to help promote the take-up of higher speeds, NBN Co has also announced plans to introduce a lower cost of entry-level wholesale bundle to ensure retailers committed to voice-only and basic broadband access customers are not left behind.
NBN Co’s existing pricing options will continue to be available for internet and phone providers who prefer this model and to also allow a smooth migration for those who choose to progressively move their customers over to the new bundles.
The NBN is scheduled to be completed in 2020.