NBN Plan Prices look to get cheaper in coming months

NBN Plan Prices look to get cheaper in coming months

After lengthy consultations between NBN Co and retail telcos, structural changes should see prices fall very soon

NBN Co announced yesterday after months of lengthy deliberations that it will be lowering the cost of selected wholesale bundles and increasing capacity for Retail Service Providers (RSP).

"Australians stand to enjoy more affordable access to high-speed broadband if retail service providers (RSPs) pass on the benefits."

Retail Service Providers (RSP) have long said that the profit margins on the NBN Network are too slim with hardly any meat left on the bone, particulary with the higher speed plans.

The new plans are set to go live between December 2019 and May 2020.

Anyone looking to sign up soon should definately hold off, with a new 100/20 plan set to be marketed to the public at approximately 10% off current 100 speed tier offerings.

Andrew Sheridan from Optus welcomed the announcement, telling nbn-check.com.au "today's announcement from NBN Co which has positively responded to feedback from retailers by increasing data capacity in the key bundles and providing forward price certainty"

Vodafone's Matthew Lobb said "While NBN is heading in the right direction, we are disappointed that NBN hasn't taken the opportunity to end the CVC 'speed tax'."

NBN Co has also signaled significant discounts on 250/25 plans and 50% drop in gigabit (1000) plans where available.

Set to create a big change will be how NBN Co charges RSP's for bandwith, previously telcos had to buy bandwith in each of 121 Points of Interconnect areas, this commonly led to overpurchasing and underpurchasing required bandwith. Under the new model NBN Co will implement a national metered scheme.

NBN will be launching a marketing campaign called 'Hot 100' to drive consumer demand for the higher tiered nbn plans.

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