Cheap NBN plans aren’t so cheap anymore as internet providers raise prices

NBN plans are about to increase in price, with customers on the cheapest speed tiers to be hardest hit.

Less than a month after NBN Co announced changes to wholesale pricing from July 1, some of the biggest name internet providers have confirmed they'll pass increased prices on to customers.

Both Telstra and Optus, which are two of the largest NBN providers in the country, have flagged price rises across several NBN speed tiers, with customers once again bearing the brunt of increased service costs. 

This comes not long after both telcos raised mobile plan prices for the second time in under 12 months. 

Telstra and Optus aren't the only NBN providers to pass on wholesale price hikes: Aussie Broadband and Belong have also announced changes, while iiNet has scrapped its NBN 12 plan in addition to its price changes. It's another unwelcome hit to household budgets, especially for customers who are already on the cheapest available plans from each provider.

Households with low internet needs or slower connection types bear the brunt of price increases

NBN Co's July wholesale price changes will see an increase to the price providers pay for every main residential speed tier, with the exception of basic NBN 12. It's then up to those NBN providers whether they want to adjust their plan pricing to reflect this. 

Many of the changes announced by providers so far haven’t exactly been in line with NBN Co’s wholesale costs. For example, NBN Co plans to raise its own prices by around $1 per month for NBN 25, $2.30 monthly for NBN 50 and NBN 100/NBN 500, and $4 monthly for NBN 2000. However, some telcos have decided to increase prices solely on slower speed tiers, by between $2 and $4 per month.

This is a big concern for consumers on what have traditionally been the cheapest plans on the market. The upcoming cost increases mean that for some providers, the mid-range NBN 50 speed tier is now only a few dollars cheaper than the much-faster NBN 500 speed (limited to NBN 100 on some connection types). 

Data from the December 2025 NBN Market Indicators report from the Australian Competition and Consumer Commission (ACCC), shows that NBN 50 is still the most popular speed across the big providers including Telstra, TPG, Optus and Vocus (Dodo and iPrimus). 

The NBN 25 speed tier, which most telcos offer as the cheapest ‘entry level’ plan, is also still a popular choice for customers. But with prices pushing up, cheap, basic NBN plans seem harder to come by, putting further strain on Aussie households amid the current cost of living crisis. 

With prices set to rise by $2-$10 per month, depending on the telco and plan, here's how much more you could be paying from July.

Telstra and Belong raise NBN prices

Telstra has been one of the quickest telcos to announce NBN price increases from July 1, including changes for business plans, legacy plans and bundle plans. Interestingly, it has also decided to raise prices on one of its 5G home internet plans, which is unrelated to the industry-wide changes to NBN prices. 

While prices are only increasing on its slower speed tiers (NBN 25 and NBN 50), customers who prefer a more budget-friendly plan (and those unable to access faster speeds) are seeing prices creep up to almost $100 per month.

Telstra’s subsidiary and typically more ‘affordable’ offshoot brand Belong is also increasing prices from July 1 on the NBN 25 and NBN 50 speed tiers, with prices for faster speeds staying put.

Optus NBN price increases

Optus is increasing its prices across a range of NBN plans from July 6, with current plans and legacy plans impacted. Like Telstra, it has also opted to only lift prices on the slower speed tiers, keeping faster plan prices stable. Prices and changes vary between Optus’ current plans and legacy plans. For customers on older plans, it might be worth comparing any price changes against Optus' current plans.

Aussie Broadband increase prices across most plans

Popular provider Aussie Broadband is also rolling out widespread price hikes from July 1, although some of its fastest speed tiers (NBN 750, NBN 1000 and NBN 2000) have been spared. These changes include an increase to the price of its cheapest NBN 12 plan; however, seniors NBN plans on this speed tier currently don’t have price increases listed.

iiNet increase prices on fast-speed plans but no longer offering the cheapest speed tier

iiNet, which is part of TPG Telecom, has made some changes to NBN plans beginning May 27. Alongside price increases, iiNet has removed the NBN 12 speed tier from its plan lineup, with the NBN 25 speed at $79.99 now its cheapest NBN offer. 

NBN pushes faster speeds but not all households can benefit

These price and plan changes come as NBN Co pushes for households to take advantage of free NBN fibre upgrades — so much so that the new Targeted Upgrade program threatens disconnection for eligible homes that don’t take part. However, high-speed NBN plans are usually priced over $100 per month, and some households on certain NBN connection types are unable to upgrade their home to fast fibre — making it harder for many to access or afford better-performing internet.

"NBN Co is focusing on a future-proofed network, and it's great that free upgrades to the fastest connection types are now widely accessible," Canstar’s Managing Editor — Utilities & Finance, Tara Donnelly, said.

"However, the push for progress risks leaving lower income and vulnerable customers behind. Internet access has moved beyond a luxury to a must-have, so NBN Co and providers should prioritise offering an affordable, entry-level option so everyone can stay connected.

"Not everyone needs lightning-fast plan speeds, and we definitely don't need sky-high NBN bills."

How can I save on my internet plan?

If you’ve received notice of a price rise from your current NBN provider, it might be time to find a better value for money plan. When it comes to NBN plans, there is typically little difference between providers beyond price and plan features, such as modem inclusions and typical evening speeds.

Comparing NBN plans on your preferred speed tier could help you find a plan that better suits your budget. Just check your current plan’s details to make sure you don’t need to pay any fees or modem costs before switching.

You could also consider switching to a 4G or 5G home wireless internet plan, which are typically cheaper than comparable NBN plans. However these plans rely on the mobile networks and therefore might not be as widely available, or offer as reliable a performance, as a fixed line connection.

"It's likely that most households will be faced with an increase to their NBN plan in the next few months," Ms Donnelly said.

"But worried customers have options: don't be afraid to challenge a price rise notice if you've been with your telco long-term, as some will offer discounts to keep you around. If that doesn't work, take advantage of new customer deals and switch to a cheaper plan ASAP."