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Yet another household bill spike is on the horizon, with NBN Co set to change its wholesale pricing from July 1.
The network operator has confirmed that prices will be adjusted across all speed tiers and for all NBN connection types. Monthly costs for NBN Co's most popular speed tiers will increase by up to $2.34 per month, with the fastest plans earmarked for a price rise of more than $4.
How wholesale prices will change from July 1
Wholesale prices aren't the same as the retail prices you pay for your NBN plan: instead, internet service providers pay these costs to NBN Co to sell you access to the network. However, it’s typical for providers to pass on any wholesale price changes on to customers, especially when those costs are set to increase.
The good news is that NBN Co's entry-level Home Basic I/NBN 12 plan will actually be cheaper by $0.01 per month, and the Home Fast/NBN 100 tier will drop by $0.68. However, all other wholesale tiers for fixed-line plans are locked in for a price rise.
The biggest increases are to the Home Hyperfast/NBN 2000 speed tier, which will jump up by $4.04 per month, and Home Superfast/NBN 750, which increases by $3.19.
Wholesale speed | Current average monthly wholesale cost | Average monthly wholesale cost from July 1 | Monthly price change |
|---|---|---|---|
Home Basic (12/1) | $12.01 | $12.00 | -$0.01 |
Home Basic I (25/5 or 25/10) | $35.07 | $36.15 | +$1.08 |
Home Standard (NBN 50/20) | $55.26 | $57.60 | +$2.34 |
Home Fast (NBN 100/20 or 100/40) | $61.53 | $60.85 | -$0.68 |
Home Fast (NBN 500/50) | $58.53 | $60.85 | +$2.32 |
Home Superfast (NBN 750/50) | $63.93 | $67.12 | +$3.19 |
Home Ultrafast (NBN 1000/100) | $73.93 | $75.88 | +$1.95 |
Home Hyperfast (NBN 2000/100 or 2000/200) | $115 | $119.04 | +$4.04 |
Why are NBN wholesale prices changing?
NBN Co is able to review its pricing each year as part of a regulatory agreement called the Special Access Undertaking (SAU). The SAU requires annual price increases to align with changes to the Consumer Price Index (CPI) and caps wholesale price rises at 5% for some products.
Anna Perrin, Chief Customer Officer at NBN Co, said price changes were necessary to keep the network fast, reliable and accessible.
“NBN’s pricing reflects a measured and transparent approach, consistent with regulatory settings and focused on supporting long‑term investment in the network.
“We understand that price changes can raise questions for customers, which is why we encourage people to review their options and check they’re on the plan that best suits their needs and budget.”
Will my NBN plan be more expensive?
How these changes will impact Aussie homes and businesses is ultimately up to the internet providers that sell plans to the public.
Last July, major brands including Telstra, Optus, Aussie Broadband and Origin lifted plan prices by an average of $3-$4 per month, although some plans rose by as much as $9. At the time, NBN Co's maximum wholesale prices had only increased by around $1.71 per month.
When the dust settles, there's a chance that final prices may be noticeably higher than the wholesale tweaks in the table above. However, we won't know for certain until providers start alerting customers of planned changes, which is likely to happen in the coming weeks.
There's no guarantee that every provider will hike prices in July, but the odds are that wholesale changes will eventually be reflected by your plan's monthly cost.
If you're looking to get ahead of potential price spikes, you may want to lock in a better NBN plan now. Look out for new customer introductory deals that offer six or 12-month discounts - switching at the right time can save you $100 or more on the usual price of your plan.
Customers who switch should be aware of their plan's standard price and when any discounts expire. Keep in mind that any standard prices advertised today may change before or after July 1 if telcos pass on NBN Co’s wholesale price increases.
