iiNet releases NBN prices, lets users pick and choose price and speed levels

iiNet has finally released the prices consumers can expect to pay under the National Broadband Network, providing the option to pick and choose which download quotas and speeds customers want instead of a one-size-fits-all approach.

The prices are slightly cheaper than those offered by other telcos including Internode and Primus, suggesting consumers can expect to pay about the same now for similar services under the new network and will have a wide array of choice.

However, telco experts warn customers may not be accustomed to the new prices, having been used to seeing prices fall over the past few years for higher quotas and speeds.

iiNet managing director Michael Malone said in a statement that because standard off-net access charges offered by NBN Co. are 40% less than currently available, “we can pass substantial savings on to our customers”.

The new services offered by iiNet start at $49.95 for a 40GB plan, $59.95 for a 200GB plan and $79.95 for a terabyte plan. All of these services start at 12Mbps, but can be upgraded to higher speeds.

Upgrading to 25Mpbs costs $5 per month, while 50Mbps and 100Mbps cost an extra $15 and $20 respectively. iiNet has also promised that customers who own the BoB series of hardware will be able to keep their modems when switching over to the new network as well.

Malone noted that customers will be able to increase their download quota and speeds for the same amount they’re paying now.

Telsyte senior research consultant Chris Coughlan says the number of NBN pricing plans that been announced indicate the users will be able to choose from a number of providers offering services equivalent to what they have now.

However, he says the economics of the NBN mean the reduction in prices seen over the past few years may not continue.

“The economics of the NBN are pretty much set for awhile, and if you look at iiNet’s latest results announcement, they have a view of the margin on their ADSL programs and they categorise that against the wholesale position of NBN Co.”

“I suspect that given this announcement they will be looking to maintain those margins.”

The announcement of a similar price structure compared to current bills also comes after opponents of the NBN suggested users would pay much more for services than they are now. However, Coughlan says it is in everyone’s best interests to keep prices the same and offer more speeds and data.

“In the current economic climate, there would be a lot of surprise if there was a push to get a great share of wallets under the NBN.”

“If they can maintain the same share that people have, that’s a good position to start in going into the construction of the network.”