Changes to plans under $55 a month

September 27th, 2018 - Get new posts sent straight to your inbox, click here.

The changes

With the change to nbn’s wholesale pricing structure that come fully into effect from 1 November 2018, we’ve had to make some hard decisions about our grandfathered plans, with the result that we will no longer be able to offer some of those plans. This will result in a price increase for 7528 or 9% of our customers.

From the 1st November 2018, any nbn plan that is billing under $55 per month no longer be available. This is generally customers on a 12/1 or 25/5 service with less than 100G included data.

Residential customers affected will be moved to the current 25/5 100G $55 residential plan.
Small Business customers affected will be moved to the current 25/5 100G $65 small business plan.

We will continue to offer voice only services at $35 for residential, single line customers.

Affected customers will shortly receive an email advising them of the change. Customers obviously have a choice at this point whether stay or go (obviously we hope they’ll stay, but we will understand if they don’t).

Why are we doing this?

The wholesale bundled offering that nbn is now providing has a floor price of $49.50. This means that it’s not possible to offer services below this price point and make a margin. nbn will say that “providers can continue to use the old pricing” which is true, but it requires a provider to have multiple CVCs in operation, this is something we can’t support at our scale.

nbn has also recently announced entry level bundles (ELB’s) which have a floor price of $24.20. We are using these for the voice only services. These bundles are not available on fixed wireless, only fixed line. A good number of the customers affected by this change are on FW so therefore the ELBs are not helpful to them. Furthermore our modelling of the ELBs and customer usage patterns show that we would trip the penalty clauses which return the price to $49.50 wholesale.

What are customers other options?

Customers with very low usage requirements may be better off looking a 4G mobile service rather than the nbn. Aussie has a range of mobile broadband plans or customers may find better value elsewhere for low usage.

We know this change won’t be popular but we can’t move forward offering plans that are below cost price. We have waited until the very last minute to make this change so that customers could take full effect of the old pricing model before we transitioned across