The Australian Financial Regulator (AFR) has warned cable and broadband customers will soon face a major price increase after NBN Co announced a new wholesale price for the nation’s top-of-the-range Internet access service.
NBN Co chief executive Bill Morrow said the new wholesale prices will rise to $50 per month for customers on a single-subscriber plan, $60 per month on a dual-subscribers plan and $80 per month in a “multi-subscribe” plan.
“That’s going to affect the average customer,” Mr Morrow said.
He said there were other changes in NBN Co’s plans that would also impact the pricing of the Internet access.
In a blog post, NBN Co said the price increase for broadband and fixed wireless broadband will be in line with the wholesale prices of the services.
However, NBN co said that a “single-subscription” plan with no monthly fee will now cost $69.99 per month, up from $60.
It will also cost $19.99 a month for an unlimited download, up to a maximum of 12 gigabytes, up a price of $10.
The price of fixed wireless, which includes internet and phone services, will also rise by $10 a month, from $50 to $75 per month.
And a dual subscription, which means that a single person can get broadband and phone for the same price, will cost $100 a month instead of $70, up by $7.
On a dual phone plan, NBN will now charge $100 per month instead and a $75 “single call” plan will now be $130 a month.
The company said it would continue to provide fibre-optic broadband services, but customers will need to sign up to its “broadband broadband” service, which allows them to access the NBN at speeds of up to 1 gigabit per second (Mbps).
Nephews on cable: What happens when they lose it?NBN’s Chief Financial Officer Matthew Green said the company is looking to make its “Internet and cable service available for all Australians”.
“Our focus is on delivering the highest-quality and most cost-effective broadband to Australians and we have committed to deliver our service to all Australians at affordable prices,” Mr Green said.NBN co is looking at other changes to the wholesale pricing.
There are a number of changes to NBN Co plans and the “Internet access” tier will be removed, NBN says in a blogpost, but the “fixed wireless” tier and “fixed phone” tier are still available.
You can watch NBN Co CEO’s blog post here: However there will be a price hike for the “multiscreen” tier, which is for those with a fixed number of simultaneous connections.
According to the NBN Co blog post:”The new ‘multiscreens’ price will be $50 a month up from the current $30 a month and includes unlimited download and unlimited data, as well as an unlimited call, which will cost only $70 a month.”
However the price will also increase by $9.99 and the number of “multis” connections will also be increased by $4.99, up the price to $25 a month from $20 a month on dual-satellite plans.
A single-satellites and dual-coupled-subscriptions broadband plan will also now cost about $30 per month and will cost between $70 and $110 per month compared to $70 to $100 for the old model.
This is due to NBN co’s rollout of NBN’s fibre-to-the house network, which has been dubbed the NBN Superfast Network.
The NBN Co statement also said that it would introduce “flexible pricing options” in the future to keep prices low and encourage customers to switch to NBN.
But it is understood that the price of the fixed wireless and fixed phone services will not increase in any way as a result of the NBN’s rollout.
As part of the rollout of the superfast NBN, NBN is currently paying for copper cables to connect customers to the network.
Under this pricing model, NBN has paid for the copper cables at about 10 per cent of the cost of the copper, but it is expected that NBN will also pay for the rest of the fibre to connect its customers to its network.
The FTTP copper network, while much more efficient than fibre, has also had a significant impact on the costs of the network, particularly for people on fixed-line connections.
A previous analysis by The Australian revealed that NBN Co has been paying $1,500 per month to copper-wireless customers for the past six months, which represents a loss of $200 million a year.
While the price for fibre-wireline services was higher in 2014, NBN’s copper-to and copper-plus network has increased by about