Affordable home broadband: Aussies happy with NBN prices
New research has shown most Australians are happy with the price and speed of their home broadband when compared to similar products in peer nations. Figures featured in the report show Australia has seen the largest improvement in broadband affordability between 13 similar nations between financial years 2018-2020.
The research conducted by Accenture and commissioned by NBN Co was undertaken to determine customer attitudes towards the affordability of services across the NBN network. Average prices and speeds across the network were also compared to those in similar nations.
The average cost of NBN services accounts for just 1.1% of the average weekly household income (post-tax) according to the report, with 7 of 8 respondents to a survey conducted as a part of the research stating they had no concerns with the current affordability of their NBN service.
The average household spent more on other essentials such as electricity and water than their internet expenditure, with Australia found to have the sixth most affordable broadband across the 13 OECD nations compared in the report.
NBN 50 plans were where Australia ranked best, our services on average the fourth most affordable in that price bracket.
Australia also saw the largest improvement in broadband affordability from the 13 nations compared, with our average NBN service reducing 0.13% as a share of income between 2018-2020. Only six nations saw an improvement in broadband affordability, with Australia leading the way.
The release of the report is timely, with the top five internet service providers recently presenting a submission to the ACCC suggesting NBN Co charge less per customer in order for customers to receive cheaper broadband prices.
While NBN Co have yet to present their own submission to the ACCC for their pricing model suggestions, the company has previously noted they could be charging a greater amount per customer, contending that their current pricing has seen them “under-recover” costs.
While a pricing battle between NBN Co and internet service providers may be happening in the background, the new report indicates that most Aussies are happy with the pricing of their current NBN service.
Whether the ACCC’s new pricing model will see savings heading to customers when it is announced is unclear, but it appears the average Australian home is comfortable with their current internet expenditure.
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