Internode lowers NBN prices after structural changes

Internode has lowered the prices users will pay for services on the National Broadband Network, explaining that it is able to do so after the network made some key changes on how connections will be priced.

The prices now resemble services offered by rival ISPs such as iiNet, which unveiled its prices last month in a “mix and match” model.

The prices changes will be a relief to customers who may have feared that they would be forced to pay much more for services under the NBN than they do now. The Federal Opposition has pointed to some NBN pricing models, saying they are more expensive than current plans and users will be forced to pay more.

Internode explained that since it first released its original prices, NBN Co. has made revisions to its pricing model “that addresses major cost overheads previously present during the ramp-up period of the NBN commercial rollout”.

“These changes, along with other significant improvements negotiated by Internode in its underlying supply economics since July, have enabled Internode to offer its customers a range of great new retail plans.”

The specific changes referenced by the company were made in early August, when NBN Co. announced a rebate for capacity charges.

Internode managing director Simon Hackett was supportive of the move at the time, saying that it would ensure ISPs would be able to deliver competitive services.

Now, he says that as a result of those changes, “we’re offering customers more data quota and at better prices than we announced back in July”. Quotas have been upgraded, while prices for entry-level plans have been downgraded.

The changes have seen Internode reduce the price of its entry-level plan, with a speed of 12Mpbs and quota of 30GB to $49.95, while prices for some higher speed services, with speeds of 100Mpbs, now start at $74.95.

The most expensive service is still the 1 Terabyte plan at a speed of 100Mpbs, which costs $164.95 per month. Other quotas have been increased, including moving the 200GB quota to 300GB, while the 300GB quota has been doubled to 600GB.

Users will now be able to pick and choose their voice services, rather than having them tacked on to internet access plans.

The announcement represents an ongoing trend of prices for internet services continuing to fall.

However, many experts warn that because NBN Co. has set its prices in stone for now, it is unlikely that the prices offered by current ISPs will fall any lower, unless these companies believe they can erase their margins further.