Telstra unveils NBN pricing

Telstra unveils NBN pricing

Summary: Telstra has unveiled its long-awaited commercial product pricing for the National Broadband Network (NBN), after the telco signed its one-year contract with NBN Co.

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Telstra has unveiled its long-awaited commercial product pricing for the National Broadband Network (NBN), after the telco signed its one-year contract with NBN Co.

Telstra NBN Prices

(Credit: Telstra)

The company has today announced a number of 24-month bundles for NBN plans with download speeds of 25 megabits per second (Mbps) and 100Mbps. The plans will be available to residents living in the first five mainland release sites of Kiama, Armidale, Townsville, Brunswick and Willunga. Although Telstra does have customers in Tasmania, Telstra will not offer commercial NBN services to those customers until NBN Co upgrades the network-termination devices to the Alcatel-Lucent standard units.

The lowest-end bundle with home phone, Wi-Fi modem and installation costs $80 per month with 5GB of data per month on 25Mbps, while the high-end plan comes in at $150 with 500GB of data per month on the 100Mbps download plan.

Telstra has three varieties of standalone plans, starting at $49.95 per month for 50GB of data per month on the 25Mbps download plan, right up to $89.95 per month for 500GB. For an extra $10 per month, Telstra will upgrade the speed of the plan to 100Mbps.

Telstra chief customer officer Gordon Ballantyne said that in the first five mainland release sites, Telstra has over 500 customers on the NBN already.

"[W]e've learned a great deal about what they need from us to make the move to the new network a smooth one," he said in a statement.

Ballantyne said that Telstra has trained staff in its call centres and stores to make transitioning to the NBN easier for customers.

"Five thousand Telstra technicians nationally are poised to connect customers to the new service, and local technicians say they won't leave customers until their devices are up and running."

In addition to this, Telstra will also launch a "Fibre Experience Centre" that will visit the NBN sites to show off Telstra services on the NBN. The first stop will be Kiama, where the centre will remain until 16 March.

Topics: NBN, Broadband, Telcos, Telstra

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Armed with a degree in Computer Science and a Masters in Journalism, Josh keeps a close eye on the telecommunications industry, the National Broadband Network, and all the goings on in government IT.

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14 comments
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  • A bit of a concern the customer agreements are offered over 2 years, but it seems Telstra have a one year agreement with NBN Co. The speeds offered are "up to X", I wonder what does that mean in practice?
    Knowledge Expert
    • >>The speeds offered are "up to X"

      Strange that they would revert to this terminology, the ACCC slapped the industry years ago, saying this language of "up to" is not on.

      $80/month for 5GB ? Strewth that's pricey. Their competition will be pleased with that.
      Dalbs
      • The 5GB quoted is incorrect, it's actually 50GB.

        So much for the NBN being "unaffordable", according to Mr Abbott. It would seem that NBN Co. has priced the service in such a way that it and the retailers make a profit, and that is more than price competitive with ADSL2+.

        So much for the sky falling in NBN that was going to send the whole country broke....
        Pete75-87212
        • I think someone made a mistake at telstra if that's the case...
          http://www.telstra.com.au/bigpond-internet/national-broadband-network/our-plans/

          Certainly says $80 for 5gb there :P
          Rei_zero
  • Am I correct in thinking that these are interim plans, to take effect in the period between the signing of the wholesale agreement with NBN Co (which just happened on the weekend) and the ACCC approval of structural separation?

    Obviously, these prices have been in readiness for some time, and for a company as savvy as Telstra, they represent the middle ground between too cheap (losing too much revenue) and too expensive (lose too many customers). They're awful, it's true, but not so awful as to scare too many existing customers away.

    Telstra would have the most complex pricing formula around, since they have to factor in the progressive changeover in revenue from copper to the NBN Co payment structure, as well as a whole set of legacy customers, products and plans.

    I imagine these will stay in place until the copper switchoff has begun and there has been some chance to evaluate how that has proceeded.
    Gwyntaglaw
  • wow was hoping cheaper prices than this but this is unbelievably expensive. 5gb, 25mbps for 80 is to expensive. iinet offers 200 gb 100/40mbps for 79.95. thats a huge difference. also their 100mbps plan is decent and acceptable i can afford that
    sanyo-e8d2c
    • Well, thank heavens that for the first time in Australian history you can order a service from a whole range of providers AND completely bypass Telstra in the process - never again having to play footsie with them again.

      Telstra is where they belong - competing for the first time without an unfair home-side advantage. Now let's see them innovate and compete in a truly fair market.

      Paul Fletcher was just extolling the virtues of setting up the playing field and letting private companies compete on it. On that point he is correct, and the NBN is a sterling example of how to do it.
      Gwyntaglaw
  • are you f-ing kidding?!! 25MB with only 5GB of data?! What are the excess data rates? Iinet pricing is also prohibitive, the financial modelling of the NBN is completely broken.
    It makes me laugh that Average Joe punter is CRYING out for 100MBs to roll into his living room. Just wait till he gets slogged hundreds of $$ in excess data charges. And dont think for a minute that the telcos will play nice..

    I hope the TIO is in a serious recruitment drive, they are going to need the staff!
    nickrivers
    • There are no excess data charges, they just throttle you to almost dial-up speeds on that 5GB plan, or 256kb/s on 100+ GB plans.

      Simply don't touch a Telstra NBN product, go with a different ISP for much better value. Also tell everyone you know to do the same, I will be.
      Paranoid-beb39
  • I'm surprised that some people think these prices are outrageously high - bear in mind that these are bundle prices which include at least local calls, and in some cases calls to Telstra mobiles and STD calls. The phone component has to be worth upwards of $30/month (though perhaps not, if you don't need a landline). The data-only plans start at $50/month for 50GB of data at 25 Mbit/s, or the same quota at 100 Mbit/s for $60/month. I'd take that tomorrow if it was on offer in my area; it's much more bang for the buck than ADSL2.
    Achilles-9158f
    • how can you say that it is more bang for your buck than ADSL2 +? You can get unlimited ADSL2+ for $60 p/m with some telcos. The current NBN plans arent close to this.

      What I'd like to know is what happens when you exceed your data plan? Will they throttle you down to 128k and what are the excess data charges?
      nickrivers
    • First off, most of the other ISP's are selling voip services for $10 per month with call costs being 1/3 the price of Telstra's. So why they charge $30 is beyond me.

      Second, the data only plans say $49.95, but actually have a minimum monthly cost of $81.90.

      http://www.telstra.com.au/bigpond-internet/national-broadband-network/our-plans/#tab-bigpond-velocity

      "Price per month when you also have a Telstra full service home phone and the BigPond Broadband Benefit"

      "Minimum cost for BigPond Elite Liberty (50GB) plan is $2,314.60 ($81.90/mth + $349 installation),"

      So you are paying $82 per month for 50GB data and it also costs you $350 to get it installed, which I assume consists of plugging things in.

      These plans are AWEFUL.
      Paranoid-beb39
  • Telstra’s NBN plans: Just universally awful:
    http://delimiter.com.au/2012/02/27/telstras-nbn-plans-just-universally-awful/
    grump-a1eeb
  • Telstra - why the lousey plan prices for the NBN?

    1H2012 will probably constitute the last time that Telstra generates more sales from its fixed services than from mobiles. Telstra collected $4,534m from its fixed line products last half, but that was down 6%. The take from mobiles was $4,393m, up 11%.

    But $4,534m is still $4,534 million for its fixed line network. To help protect that 4534m in the short term, why not release lousey priced NBN plans while it does not really count - eg the NBN is not even partly rolled out yet. This could be why Telstra included the use of copper for phone calls, even if the customer is using fibre for their broadband. VOIP for calls is just not talked about by Telstra. Remember that $4,534m for fixed line calls.
    In time they will introduce VOIP (or naked connections) and many of their customers who are still waiting for the NBN to pass thier door would say, I want that service too. Why pay line rental when you can still make a call over the broadband via VOIP.

    So these may be lousey NBN plan prices for their customers, but they are great plans for the share holders.
    Goldie248