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New Contributor Leomar
New Contributor

NBN plans

About to get NBN. For several years I've paid $90 per month and got 100 Mbs speed. Now I'm being offered the same plan at $90 per month but 50 Mbs speed. This is the great NBN step forward? I get stonewalled when I complain to Optus about the obvious. has anyone had the same happen and got better service?
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6 Replies
Trusted Contributor
Trusted Contributor

Re: NBN plans

When you were using Optus Cable Optus only had to pay themself.

When you move to NBN, Optus has to pay NBN - NBN prices at wholesale level are extrememly high (compared even to NZ).


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Honoured Contributor
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Re: NBN plans

HFC Cable users have essentially had the "NBN" for decades. We are part of a luck minority that has had access to highspeed broadband. The NBN has first and formost been about spreading those speeds to everyone in the nation. So yes to us cable users it doesn't seem like a great leap forward on the surface but to everyone else it is. FWIW The prices are dictated by the NBNCo (and essentially the government) so currently 50Mbps is aimed for as the silver standard and if a household really needs the extra 50Mbps then it will now cost $20-$30 more). But a few notes on benefits:

 

1) 50Mbps is actually plenty for most households at the moment. It unlikly many would notice the speed drop in most instances.

2) There are other providers offering cheaper 100Mbps plans but there can be trade offs.

 

But just to note a few of the NBN benefits you might not realise:

 

1) 100Mbps is/was the fastest cable speed. Already installed technology could see that boost a lot (eg 500 Mbps+)

2) The existing HFC cable network was becoming less up to the task. The NBN has bought it and upgraded it to handle everyone (note the Optus network didn't make the grade and is due to be dismantelled in 2 years time)

3) Upload speeds! You now have access to 20 or 40 Mbps upload

4) Every one is getting access to fast speeds. This is a big one and yet to play out as until now anyone developing anything for Australian's online had to basically go for the lowest common denominator (i.e. 5Mbps ADSL). But now stuff can be developed knowing the whole country has access to the required speeds.

 

But for now, yes you will have to drop to 50Mbps to keep the same price. I suggest you have a go and if needed the 100 is easily got. 

 

Peter Gillespie 

New Contributor Leomar
New Contributor

Re: NBN plans

Thanks Peter. Much appreciated

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Occasional Contributor oz1siiam
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Re: NBN plans -no disadvantage

I had thought that there was a requirement on RSP's like Optus and Telstra to ensure customers were not "disadvantaged". is not a plan at a high price for less a disadvantage? NBN is now only coming to our area next year, sept-oct apparently. the price is ~$20 more for about the same. speed. However, the plan does not include the fetch package we currently have. Unfair?
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Trusted Contributor
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Re: NBN plans -no disadvantage

Disadvantaged due to the Federal Government setting the wholesale prices higher then what was being provided by the telco before nbn.

 

No Telco is in business to make a loss, costs that are paid to nbn have to be paid for by the end customer. 


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Re: NBN plans -no disadvantage

I'm not sure about the "disadvantage" rule? Possibly you are refering to a different circumstance where that is a regulated requirement. The NBN arriving is a big disruption to the existing market. In effect every contract for every household internet and phone plan in the nation will be concluded. All current contracts have a provision where the Telco can withdraw services on there end unilaterally. This is needed as the government has said no Telco can provide internet services 18 months after the NBN arrives in your area.

 

So once the NBN arrives you are a free agent and can pick any plan and any RSP to get the internet and phone back again. Its a new landscape and procing and features and offers will vary. Keep in minf that for the large majority of Australian's they will be going from usually less than 10Mbps (max) to accessing 100Mbps. So its a big step up and why the NBN was rolled out in the first place. Existing cable users on the other hand will find the price jump annoying but usually not onerous. I think I said above that most households can do the standard unlimited 50Mbps plans at easily the same price as before. Most won't miss the extra 50Mbps for the time being. There's also quite a few cheap 100Mbps plans for that matter.

 

Ultimately as @Paddylee says, you can't force someone to sell you something. Prices change and there's nothing to stop prices going up on any deals you might have once out of the contract period. 

 

FWIW the price hike is essentially due to both governments mandating the NBNCo be profitable almost from day one. Despite the large $50 billion upfront cost of the rollout the NBN is required to provide a positive cash flow each year to the government. This is an accounting trick that lets the $50 billion stay out of the budget (because its a profitable business and not costing the tax payer a cent Smiley Indifferent) This is one reason why prices have stepped up. We will wait and see if the Liberals decide to write down the $50 billion value to a lesser amount which will ease the pressure on NBNCo to charge high prices.

 

Peter Gillespie