Cost certainty for nbn Co's future a welcome change
You may have seen a flood of articles in the media this week about the upcoming price changes to nbn plans. The ACCC and nbn Co have been in discussions for some time regarding a much larger change in the way nbn Co operates, not just the pricing of nbn Co's network components.
What will the new pricing plans be?
Let's jump straight in and have a look at the new pricing plans that Lightning IP will be offering on services over the national broadband network.
Home & Small Office plans
Our most popular range of plans, designed for homes and small offices, have primarily had a price decrease, bringing the price down on the increasingly popular Fast and above plans.
| Plan | Speed tier | Old price | New price | Change |
|---|---|---|---|---|
| Basic | 25/5 Mbps | $69 | $75 | $6 increase |
| Standard | 50/20 Mbps | $79 | $85 | $6 increase |
| Fast | 100/20 Mbps | $99 | $95 | $4 reduction |
| Super Fast | 250/25 Mbps | $119 | $105 | $14 reduction |
| Ultra Fast | 1000/50 Mbps | $139 | $125 | $14 reduction |
Home & Small Office Pro plans
Our Pro plans provide a massive boost in upload speeds over their counterparts. While this upload boost does come at a price, it is exciting to say that across the board these plans have seen a reduction in price.
| Plan | Speed tier | Old price | New price | Change |
|---|---|---|---|---|
| Fast Pro | 100/40 Mbps | $109 | $100 | $9 reduction |
| Super Fast Pro | 250/100 Mbps | $179 | $170 | $9 reduction |
| Super Fast Pro II | 500/200 Mbps | $269 | $260 | $9 reduction |
| Ultra Fast Pro | 1000/400 Mbps | $379 | $360 | $19 reduction |
Fixed Wireless plans
Over the next quarter, we expect nbn Co to release two new speed tiers for Fixed Wireless Plus: the Fast and Super Fast tiers, designed to match the speeds of their terrestrial counterparts. This is great news for those in outlying or sparsely populated areas looking for more speed than has previously been available.
| Plan | Speed tier | Old price | New price | Change |
|---|---|---|---|---|
| Basic | Up to 25 Mbps | $69 | $75 | $6 increase |
| Plus | Up to 75 Mbps | $79 | $85 | $6 increase |
| Fast | Up to 130 Mbps | — | $95 | Coming soon |
| Super Fast | Up to 325 Mbps | — | $105 | Coming soon |
Business Priority plans
Often overlooked, our Business Priority plans give business users assurance that our team can call on nbn Co technicians 24/7 should their service require it. We have been able to pass on a price reduction across the board for these plans, as well as introduce a new tier.
| Plan | Speed tier | Old price | New price | Change |
|---|---|---|---|---|
| Priority 50 | 50/20 Mbps | $119 | $115 | $4 reduction |
| Priority 100 | 100/40 Mbps | $169 | $140 | $29 reduction |
| Priority 250 | 250/25 Mbps | — | $150 | New plan |
| Priority 250+ | 250/100 Mbps | $229 | $200 | $29 reduction |
| Priority 500 | 500/200 Mbps | $329 | $300 | $29 reduction |
| Priority 1000 | 1000/400 Mbps | $429 | $400 | $29 reduction |
Further information on the underlying changes
Removal of CVC on high-tier plans
One of the most dramatic changes coming to the new nbn Co wholesale structure is the partial removal of a usage charge called Connectivity Virtual Circuit (CVC). CVC has been a controversial charge, established in the early days of nbn Co, that charges providers for network utilisation.
Over the years, CVC has been criticised for artificially slowing the growth of Australia's internet speeds — initially resulting in congestion where budget providers did not purchase enough CVC, and more recently being blamed for rising costs.
The removal of CVC charges on speed tiers of 100 Mbps and above (Home & Small Office Fast) will allow many providers to pass on a welcome price reduction across the plans that are becoming increasingly popular with Australian households and businesses.
Accounting for utilisation per service
Under the previous model, the CVC utilisation nbn Co charged was pooled across all services, meaning the price of entry-level and low-usage services was affected by high utilisation from heavier users.
With the new model, services on lower-tier plans that exceed the bundled CVC inclusion will be charged for the utilisation overages, with a ceiling in place.
This change means providers, including Lightning IP, will need to adapt to changing average costs for these plans as internet usage increases across the population.
Annual price reviews
As part of the SAU between nbn Co and the ACCC, nbn Co will now conduct an annual price review to align all plans with current CPI. These reviews will happen mid-year, be based on the last quarter's CPI, and be capped at a maximum.
These price reviews also include an increase in bundled CVC for the Basic and Standard plans, as well as a reduction in the overage charges for these plans. By 1 July 2026, nbn Co is aiming to remove all overage charges on the Basic and Standard plans.
This should mean we see a gradual introduction of entry-level broadband plans suitable for low-usage users over the next few years.
Frequently asked questions
When will these prices take effect?
New customers connected from 1 November 2023 will be connected on these new plans.
For existing customers, the pricing change will be reflected on their December 2023 invoice.
Customers who change speed tier during November will take advantage of the new pricing.
When was the last nbn price change?
It has been almost three years since we have seen a major price change from nbn Co.
The SAU process between nbn Co and the ACCC has taken almost two years, over which time Australia has had the most significant CPI increases it has seen in recent years.
During this time there have been releases of new plans, and here at Lightning IP we have reviewed prices across the board.
Why did the Basic plan price increase?
Under the new nbn Co wholesale rate card, the price for the Basic (25/5) plan actually decreased.
However, this decrease came with the removal of pooled utilisation (CVC) charges. Because of this, individual customers will exceed the utilisation included in their service.
By analysing the history of services on these plans, the new pricing we have launched is a commercially viable decision that will see some Basic plan customers charged less than the total cost of their wholesale service.
Have another question? Get in touch with our team.