Australians are paying an average of $84 per month for internet access on the NBN – and in a cost-of-living crisis, questions are being raised about why cheaper internet is not available for people on lower incomes.
What could be done to lower NBN pricing plans, and can we learn from overseas?
How much are people paying for home internet?
According to the latest report, about 8.6m of the 12.5m premises able to connect to the NBN are now using the service in Australia.
Consumer advocacy group Australian Communications Consumer Action Network (Accan’s) latest survey conducted by Essential, of 1,065 people, found Australians are paying $84 per month on average for their home internet connection, with 31% paying between $81 and $100, 30% paying between $61 and $80, 20% paying over $100, and just 13% paying $60 or under (with the rest unsure).
The survey also found 74% of those who use less than 50GB per month are still paying over $60 per month, with an average bill of $71.
These figures include not just NBN connections but other services that compete with the NBN, such as TPG’s services, as well as 5G home internet which has been offered at rates lower than prices people pay in the NBN.
Surely some of those people are just paying so they can get faster download speeds?
The survey found 18% would be prepared to pay more for higher speeds, while 68% said the price being paid was adequate for the speeds they get. Lower speeds would be acceptable for a reduced cost, 14% of respondents said.
Why is the NBN so expensive?
The NBN is a government-owned company with billions invested in rolling out the network over the past 15 years. Successive governments have argued that NBN should make a return on taxpayer investment, and wholesale prices are set to a level for NBN to achieve a rate of return.
That pricing model, when adding on the retailer costs, has meant that prices – particularly for higher speed plans – are higher than some argue they should be.
Should people who earn less pay less for the NBN?
Of those who responded to the survey, 69% supported a concessional broadband offering, with 34% strongly supportive and 35% somewhat supportive.
“Too many Australians are forced to choose between staying connected and paying for essentials like food or rent. That’s not good enough. Let’s make Australia a leader in digital inclusion and ensuring no Australian is left offline, Accan chief executive, Carol Bennett, said.
Are there any concession schemes now?
The federal government has paid for home internet for about 23,000 homes with school-age students across the country, in a scheme that was recently expanded out to 2028, with up to 30,000 places available.
The Labor government has so far resisted calls for cheaper NBN pricing, concession or otherwise. The focus for the government has been on upgrading premises to full fibre-to-the-home connections in many places, in a bid to undo the multi-technology mix model rolled out by the former Coalition government that left homes with subpar download speeds.
The Coalition has not yet announced any policies around the NBN, except recently stating a Coalition government would not privatise the government-owned network.
Has concessional pricing for internet been done elsewhere?
The United States ran an affordable broadband initiative that provided up to US$30 per month to eligible households that ended in 2024 due to Congress not approving additional funding. A study commissioned by a wireless internet company argued the cost of the program was offset by the healthcare, education and workforce productivity gains seen as a result.
The Connecting Families Initiative in Canada offers services of C$10 or C$20 per month for basic broadband of up to 50Mbps download speeds and 200GB of monthly data.
Bennett said Australia would not be treading new ground if the country followed.
“The benefits of affordable broadband are clear – better health, better education, better engagement in work and employment, and stronger communities. We’re asking the government to seize this opportunity. We would be following international success stories.
“Our call follows mounting international evidence showing that affordable broadband isn’t just good policy – it’s good economics.”
