Price increase announcement

August 3rd, 2020 - Get new posts sent straight to your inbox, click here. Phillip Britt

Recently we flagged concerns about the current NBN CVC wholesale pricing model, and that we believe it (along with other increased costs) will force internet providers to choose between congestion or higher prices.

That time is now for Aussie Broadband. The difficult news is that we need to raise the sale price of some of our plans today, and further down the track, we will need to make changes for some existing customers.

This does not affect everyone. It applies to our residential and small business 100Mbps plans, one seniors plan, and legacy (old) plans. In the wake of yesterday’s announcements in Victoria, we want to reassure you that we are continuing all our COVID-19 support measures.

What plans are changing?

There are 3 components:

  • From today, 3 August 2020, we will start selling all our residential and business 100Mbps plans at an extra $10 per month and our seniors unlimited plan at an extra $6 per month
  • Throughout September, we will contact existing customers on these plans to give them 60 days’ notice of the price rise
  • Also throughout September, we are contacting customers on legacy plans, to let them know that we are retiring their plan and have matched them to an existing plan that we think will suit them best. Again, we will give 60 days’ notice of any changes

If your plan is affected, you can accept our recommended replacement plan, or can easily jump into MyAussie/call our team to choose a different plan.

Not everyone on legacy plans will see a price rise. Some will get better bang for their buck or their price will stay the same. Some of the legacy plans that we are retiring have been grandfathered for more than 2 years.

In the spirit of no bullshit, you can also go to another provider – although of course we sincerely hope that our focus on quality customer service and network operations convinces you to stay. If you’re on one of our old modem pay-off contracts, we will waive any exit fee if you wish to leave us.

Why are we doing this?

Our aim is always to operate a quality network, avoid congestion and provide great Australian support.

COVID has seen Australians use the internet more than ever before, and it’s been great to see the way it is helping people through the pandemic (the graph below gives you a picture of how internet use in Australia is changing).

Even with NBN’s extra CVC being extended to 30 November 2020, for us, the costs associated with higher usage on some of our plans means that those particular plans are no longer profitable. We’re not out to make an outrageous profit, but we do need to be a sustainable business.

We know this change won’t be popular but we can’t continue offering plans that are barely at cost price, or making a loss.

Budgeted bandwidth vs actual bandwidth required (Mbps)

New plans and better VoIP

We’ve taken this opportunity to revamp our plan range – and so we’re also announcing a completely new speed tier of 75/20 (with 100G, 500G or Unlimited data), starting at $80 per month, which may suit some 100 speed tier customers better.

Our VoIP residential and business customers will also get some added value:

  • $10 VoIP plans will now include all calls to mobile as well as local and national calls, and
  • $20 VoIP plans will now include a $15 call credit, which will provide up to 200 mins to selected destinations, as well as all calls to local, national and mobiles

As well, we are:

  • Launching a new 12/1 100GB plan for seniors, priced at $50 per month
  • Bringing back a 12/1 voice-only plan for customers on voice-only legacy plans, priced at $45 per month
  • Improving the upload on 25/5 plans to 25/10 (other than Fixed Wireless)

COVID support arrangements will continue

Most of our team are in Victoria (both regional and metro), and probably like many of you, we are all feeling the impacts of yesterday’s announcements.

Our COVID support arrangements that we introduced back in March are continuing, including unlimited data during business hours, free upgrades for customers on 12/1 plans who need to work from home, NBN’s free plans for low income families with no home internet connection, and stopping suspensions for customers who are financially affected and working with us.

Over the last few months, we’ve shifted a significant portion of our team to work from home, as well as testing home work arrangements for all remaining staff in our offices. From today, we are preparing for the whole company to work from home and we feel confident that you should not see any change in our service levels.

Questions?

We are still working through the finer details of our September emails to affected customers, so if you have any questions about how your plan will change, please hang off until you get your email.

This is a tough call

Price rises are a tough call for us, especially while COVID continues to impact our nation. We’re really sorry, and apologise to everyone it impacts.

If we want to stay in business, and support Australian jobs, and provide the solid network experience that people want, we believe it’s a choice we have to make.

About the author

Phillip Britt

Phillip Britt

Phil is a charismatic leader who thrives on large challenges. He’s also a self-confessed geek. He is co-founder and Managing Director of Aussie Broadband, one of Australia’s largest privately-owned ISPs.