Commonwealth Bank to sell NBN with Tangerine and More Telecom deal

With many energy providers now offering mobile and internet — and telcos likewise moving into the energy space — Australians have more options for bundling utilities than ever before. Now, a new strategic move from Commonwealth Bank (CBA) has opened the door for personal finance to jump on the bundling bandwagon.

CBA has announced a partnership with Australian sister telcos Tangerine and More Telecom, in a deal that will allow the banking giant to offer NBN plans to customers at a potentially discounted cost. The move will also allow Tangerine and More to expand their respective internet and mobile offerings, with CBA set to acquire a 25% ownership stake in both brands.

The initial focus of the partnership will be integrating Tangerine and More Telecom NBN products into the CommBank app, providing CBA retail customers with exclusive benefits. The aim is to allow customers to order, monitor and pay for their NBN service directly through the app, alongside CBA’s own products and accounts.

CBA: deal creates ‘more value’ for customers

With CBA servicing 11 million retail customers in Australia — and around 7.5 million of those being ‘digitally active’ — it’s a massive opportunity for Tangerine and More Telecom, particularly in an increasingly crowded broadband space. If the CBA partnership can offer both convenience and competitive NBN pricing to banking customers, it could entice many Australians into switching their broadband plan — and pave the way for future finance/telco alliances between other providers.

It’s possible CBA will use the partnership to focus on new home owners, who are a customer base likely to be shopping around for home internet. This is also a demographic that tends to be focused on saving, so puts Tangerine and More in a great position to attract customers with switching offers and introductory deals.

“We’re looking at how we can help save customers money with their everyday bills and commitments and our decision to partner with More Telecom and Tangerine highlights how we’re continuing to reward our customers,” said CBA’s Group Executive for Retail Banking Services, Angus Sullivan.

“As the country’s biggest supporter of getting Aussies into homes, we are reimagining banking for our customers, creating more value for them, putting more money back in their pockets, and helping them save money by exposing them to new ways of doing things and new quality products and services.”

Tangerine and More Telecom co-founder, Andrew Branson, was equally excited at the possibilities the partnership would offer, both for the companies involved and their respective customers.

“Our plan was always to capture a significant market share in NBN and partnering with Australia’s largest bank to distribute our products and services will only help that,” said Mr. Branson.

“Consumers don’t often consider changing their NBN provider, but through this partnership with Commonwealth Bank we can also schedule special offers and broadband activations in line with a customer purchasing a new home, or updating their home or business address.”

Tangerine and More Telecom: room to grow

If you’re currently a Tangerine or More Telecom customer, the deal with CBA is unlikely to impact your plan anytime soon. However, with the ASX 20-listed bank becoming a minority shareholder in both telcos, it could fast-track growth in mobile, with Tangerine and More Telecom each looking to lock down wholesale agreements to offer 5G network coverage.

Tangerine is currently one of Australia’s cheapest NBN providers, with standard prices beginning at $59.90 per month for unlimited data on the NBN 25 speed tier. The telco offers NBN 25, NBN 50, NBN 100 and NBN 250 speeds, all with unlimited data, no lock-in contracts and no setup fees.

Currently, new customers can score a considerable discount for their first six months on any Tangerine NBN plan. All four plans are reduced by $15 per month, saving you $90 over six months. After the introductory period ends, plans will revert to their standard monthly cost, but you are free to switch between plans or cancel your service at any time.

The below table features selected published Tangerine NBN plans from Canstar Blue’s database, listed in order of cost from lowest to highest. Use our comparison tool to see plans from a wider range of providers. These are products with links to a referral partner.

Telco bundles: convenient or costly?

The CBA announcement comes after several energy providers launched NBN and mobile services, including Origin, AGL, and EnergyAustralia. Telcos have also seen the benefits in offering gas and electricity to consumers: Dodo currently offers discounts for customers who bundle energy with NBN, while Telstra is expected to launch its own energy plans in the coming weeks.

Of course, the value in rolling internet, energy, and mobile into one bill will depend on your household needs across all products. While you may be able to score a monthly discount on phone or NBN, it’s important to compare prices before signing on, especially across gas, electricity or hot water providers. Convenience can be a huge factor in bundling utilities, but it may still be cheaper to keep your telco and energy providers separate.

If you do plan on shopping around, the following energy retailers currently offer home broadband to customers:

• AGL
• EnergyAustralia
• Origin Energy
• Dodo
• Kogan Energy
• Sumo

Compare NBN plans from a range of providers