Time to read : 3 Minutes
If you, like many other Aussies, have recently received a message from your internet provider that your bill will be going up soon, you’re not alone.
According to Compare Club data, many people will see their internet bills rise by $5 or more a month, not ideal when household budgets are already so tight.
The good news is that there are a few tactics you can use to beat the price hike and keep more money in your pocket.
So why are broadband prices rising?
Due to an increase in the NBN’s wholesale prices, broadband prices overall will increase from 1 July.
The NBN provides the infrastructure for all internet services across Australia and supplies to all retailers – meaning that anytime NBN raises its prices, the costs are passed onto consumers.
How can I start saving on my broadband?
The silver lining to this price hike is that by switching to another provider, you can take advantage of a better deal. With dozens of providers in the market, many are eager to lure you in with attractive introductory offers. These are often referred to as “honeymoon deals.”
Compare Club findings show these honeymoon deals can result in significant savings:
There are plans available for as little as $50 per month for unlimited data on a 50Mbps speed plan.
For larger households, NBN 100 speed plans are available for around $80 per month.
Some plans could save you an estimated $200 in the first 12 months alone.
The ACCC has advised consumers to be vigilant and shop around for better broadband prices. Many are paying more than they should due to “loyalty tax” – where existing customers pay more for services than new customers. In 2023, Aussies paid a whopping $4.5 billion in loyalty tax by sticking with the same energy, broadband and mobile providers.
Another way to save is by bundling your utilities. Many energy companies now offer electricity, gas, and broadband packages. This can result in substantial savings, with some providers offering up to six months free or an account credit as part of their competitive deals.
Compare Club's Head of Research, Kate Browne, suggests that bundling utilities can save consumers more than $200 a year. "Bundling together broadband and energy can be a great way to save money on all your services," Kate says.
"Switching broadband providers is easy and takes less time to do than you would think. It means not only do you avoid paying the loyalty tax by staying with the same provider, but you can take advantage of the best deals, which are usually reserved for new customers.”
“With NBN wholesale prices set to rise on July 1, now’s a great time to review your broadband provider and switch to a better deal," says Kate.
Bottom line:
Check your speed needs: ensure you are paying for the right speed for your household. A 50Mbps plan is usually sufficient for a household of 3-4 people, while a single person might find a 25Mbps plan more than enough.
Regularly compare and switch providers: compare broadband plans every 6-12 months to ensure you’re getting the best deal available.
Consider new retailers: don’t be afraid to try new retailers. Most broadband is purchased via the NBN wholesale, so for the same service you might be able to save significantly on your monthly bill.
Go Deeper:
https://compareclub.com.au/expert-analysis/utilities/faster-nbn-broadband-is-there-a-catch/
https://www.techradar.com/computing/internet/nbn-bills-look-set-to-rise-again-and-soon
