
All Aussie Broadband customers with an NBN 100 plan will soon pay an extra $10 per month as part of a raft of newly announced plans changes.
Aussie Broadband has already applied the pricing changes to its range of plans, bringing its unlimited NBN 100 / 20 plan up to $99 per month, and its unlimited NBN 100 / 40 plan to $109 per month. Existing customers will benefit from a three or so month grace period. Throughout September, Aussie will contact all customers on NBN 100 plans and give them a further 60 days' notice regarding the price rise.
The price hike comes just weeks after Aussie Broadband raised concerns about the telco industry having to increase prices or reduce service quality after NBN Co's COVID-19 CVC boost runs its course due to increased usage.
In March, NBN Co responded to the pandemic by offering telcos an additional 40% capacity in order to help mitigate congestion with more Australians working from home. NBN Co's capacity-based pricing model is the main reason customers experience congestion on the network. All telcos selling an NBN plan also need to purchase capacity, or CVC.
Telcos typically have to find the right balance between how much CVC they purchase and the price they charge for the plan. Purchase too little CVC, and you get congestion during peak hours. Purchase too much, and plans become too expensive.
At is stands, NBN Co will be offering the CVC boost until the middle of September, but even with the extra capacity, Aussie says it is still losing money on plans.
"We need to raise the price of some of our plans because of increased costs associated with the data being used on those plans," said an Aussie Broadband spokesperson. "Part of this cost – but not all – is the NBN CVC charge. Even with NBN’s extra CVC COVID offer, we are either at cost or losing money on those plans."
"Whilst we really appreciate NBN's extension, it does not address the underlying issue for ISPs of trying to set prices to cope with rapidly changing data use by our customers - the CVC overage charge being one of the contributors to this, but not the only one."
"Price rises are a tough call for us, especially while COVID continues to impact our nation (and at the moment, particularly Victoria, where we are based). We’re not out to make an outrageous profit but we do need our prices to be sustainable."
Aussie believes all NBN providers will soon be forced to make a similar choice: to either increase prices or contend with higher congestion.
In addition, Aussie Broadband will also be contacting customers on "legacy" plans through September and moving them on to a plan in the current range. These customers will also be given 60 days of notice.
Since Aussie Broadband plans are contract-free, customers not happy with the changes are always able to swap to a different speed tier or move to another provider entirely.
As part of its pricing changes, Aussie Broadband has launched a new NBN 12 plan with 100GB for seniors at $50 per month, increased upload on NBN 25 plans to 10Mbps (other than for fixed wireless customers), and introduced a new NBN 75 speed tier.
Aussie's new NBN 75 plan will set you back $89 per month with unlimited data, the same as what the telco used to charge for an NBN 100 / 20 plan. The telco is reporting typical evening speeds of 65Mbps on NBN 75 plans.
Pricing for Aussie Broadband's NBN 25, NBN 50, and plans faster than NBN 100 remains unchanged.
Here is Aussie's entire range of unlimited plans:
And here is how Aussie's new NBN 100 plan pricing compares to the competition:
Alex Choros
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