Telstra NBN prices are changing: Will you pay more?

Telstra has confirmed plans to increase pricing across its home NBN range, with its most popular unlimited plan set to rise to $100 per month from November.

Australia’s biggest telco has quietly announced the changes via its website, notifying existing and new customers that selected plans will be hit with a $5 per month price hike. Telstra’s Basic (NBN 25) and Essential (NBN 50) plans will each rise by $5 beginning November 1, 2023, meaning the lowest price for a Telstra NBN plan will soon be a hefty $85 per month.

However, it’s not all bad news for Telstra customers: the telco’s super-fast Ultimate NBN plan — which includes download speeds of up to 250Mbps — will actually drop in price, falling from $140 to $135 monthly. Telstra’s Premium NBN 100 plan will also remain unchanged, staying at $110 per month for all customers.

Telstra has attributed the price changes to a range of factors, including rising wholesale costs and lower profit margins on home internet plans.

“Rebalancing our pricing in this way helps us to continue to invest in the things that matter — like local Telstra call centre support and 24/7 network monitoring to help protect against scams and other malicious activity,” a Telstra spokesperson told Canstar Blue.

“We’ve taken steps to protect our concession and low-income customers from the changes by maintaining our $10 concession credit on the voice plan and our $65 Starter internet plan for those who need it. [Telstra subsidiary] Belong also offers great value for customers with a $65 plan which includes unlimited data.”

In July this year, Telstra also increased prices across its postpaid mobile and mobile broadband plans by up to $6 per month.

Although prices are set to change, new customers can claim a six-month discount on selected plans by signing on before November 13, 2023. Telstra is offering a $5 price cut on Essential NBN 50 plans, $10 off Premium NBN 100, and $20 off its fastest Ultimate NBN 250 plan for eligible customers, saving you up to $120.

The following table features published Telstra NBN plans from Canstar Blue’s database, listed in order of cost from the lowest to highest and then by data allowance. Use our NBN comparison tool to see plans from a wider range of providers. These are products which may contain links to a referral partner.

How do Telstra’s NBN prices compare?

NBN 50 is overwhelmingly the most popular NBN speed tier in Australia, and Telstra is set to increase its NBN 50 plan price to $100 per month. This cost covers unlimited data, a new Telstra Smart Modem 3 (free if you stay connected for 24 months), plus unlimited standard national calls if you’re still using a home phone line. Telstra also throws in its Internet Optimiser service and advanced cyber security, and new customers can currently score three months of free Telstra Device Security, two months of free BINGE standard streaming, and four months of free Spotify Premium.

Although Telstra does pack its plans with plenty of extras, $100 is significantly more expensive than the most affordable NBN 50 plans on our broadband database. Value-focused telcos such as Flip and Tangerine Telecom offer NBN 50 from around $65-$70 per month as standard, but both providers are currently giving new customers a six-month introductory discount: you’ll pay $54 per month with Flip, and $54.90 with Tangerine.

If you’re looking to compare Telstra to other big names, you’ll still pay less for an equivalent NBN plan with both Optus and TPG. Optus’ standard NBN 50 plan is priced at $85 per month (currently reduced to $75 for six months for new customers who sign up by October 22, 2023), while TPG’s NBN 50 deal sits at $74.99 monthly.

For customers in smaller homes or with lighter usage needs, Telstra’s Basic NBN 25 plan will increase to $85 monthly. However, you can easily find other plans on the NBN 25 speed tier at much more competitive prices: for example, Flip at $54.90, Mate at $59, Tangerine at $59.90, and Tomi at $59.95. And although Telstra’s Premium NBN 100 plan will keep its current $110 per month price, you can again lock down the same speeds from other brands for less, with standard prices available from around $80.

If you want to see how Telstra’s NBN plans compare, we’ve compiled some of the cheapest NBN options on our database across several speed tiers below.

Are NBN prices rising across the board?

Telstra’s price tweaks take place ahead of expected wholesale price changes proposed by NBN Co, which are currently waiting approval from the Australian Competition and Consumer Commission (ACCC). NBN Co’s Special Access Undertaking (SAU) proposal is its third attempt since March 2022 to lock-in ongoing prices for NBN retailers, with two previous submissions being rejected by the ACCC.

“We held off changing our prices until the new NBN SAU was lodged so we could get greater certainty,” Telstra’s spokesperson said. “That has now happened and with NBN expected to implement pricing changes in the near future, plus our own increased business costs, we believe now is the right time for us to look at our plans and make some changes which respond to this and improve the economics of our fixed business.”

The ACCC and telco industry bodies have previously expressed concerns that NBN Co’s suggested new pricing model will lead to increased prices for customers, particularly for the popular NBN 50 speed tier. Advocacy groups such as the Australian Communications Consumer Action Network (ACCAN) have also pushed for affordable entry-level options to remain available for low-income households.

Telstra isn’t the only major telco to shake up internet pricing early: Optus has also recently adjusted its NBN plans for new customers, increasing costs by up to $6 per month. However, recent reports from the ACCC indicate that customers are steadily moving from big-name brands to smaller, cheaper telcos, with Telstra and TPG each losing market share in the June 2023 quarter.

Challenger internet providers, including Aussie Broadband, Superloop, and Southern Phone, continue to draw new customers away from the broadband ‘big three’ of Telstra, TPG and Optus. With cost of living pressures stretching household budgets to the max,  it’s clear that many Aussies are looking for a cheaper home internet deal.