Internet prices to fall

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The Australian Competition and Consumer Commission (ACCC) handed down a draft decision yesterday that will see the price of internet access fall for millions of users. The decision may see the price that Telstra can charge its wholesale customers (iiNet, Optus, TPG, Dodo, etc) for use of its copper network, decrease by 9.6 per cent from 1 October 2015 until 30 June 2019.

The ACCC’s original draft decision in March called for a 0.7 per cent price reduction, but this has now been overturned by the newly proposed 9.6 per cent price reduction. Chairman of the ACCC, Rod Sims, suggested that the original decision was based on outstanding issues that weren’t finalised at the time, causing the sudden change in price reduction.

“Users of Telstra’s network should not pay the higher costs that result from fewer customers as NBN migration occurs,” Mr Sims said.

Read more from www.news.com.au

Read more from www.smh.com.au

Opinion: Will you see the reduction?

The ACCC’s decision to decrease Telstra’s charges to wholesale internet service providers (ISPs) should see a dramatic shift in the internet pricing landscape, allowing for more wriggle room for those playing with finer margins. Once approved and in place, the changes will see different price reductions from all ISPs.

Companies such as TPG that have been making a name for themselves through lower prices would be close to the top of the list to pass on the full price reduction, while a company such as Optus or iiNet may be less likely to pass on the full reduction.

While the wholesale price reductions may not seem like a win for Telstra customers, if its main competitors, Optus and iiNet, pass on some or all of the savings, then it is reasonable to assume that Telstra may also lower its retail prices. But as with the big banks passing on any reduction in the official interest rate, we will just have to wait and see.

What do you think? Is the ACCC’s decision a positive step for internet users? Should the ACCC force wholesale internet service providers to pass on all or a minimum per cent of the decrease to their customers? 

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Written by Drew

Starting out as a week of work experience in 2005 while studying his Bachelor of Business at Swinburne University, Drew has never left his post and has been with the company ever since, working on the websites digital needs. Drew has a passion for all things technology which is only rivalled for his love of all things sport (watching, not playing).
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102 Comments

Total Comments: 102
  1. 0
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    Yes, I believe it … Just as I now save $500 per year in electricity bills! That was the election promise, wasn’t it???

    Anyone else save this mythical and elusive $500 on their electricity bill?

    I am now waiting for manna to fall from heaven, it could be a long wait??

    • 0
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      Totally agree about waiting a long time for Manna to fall from heaven ! Guess I will make it up there first before anything happens here that is for sure !! Dotty

    • 0
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      Just got my electricity bill for $42.00. However internet is much higher but won’t hold my breath waiting for it to come down.

    • 0
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      Did not know that our dead in the water PM had anything to do with internet pricing. But you are spot on with your comment about high electricity prices. I believe the chant before and after the election was “you have high electricity prices because of the Carbon Tax”. This lie only ended when Greg Hunt had the ABC’s Tony Jones laugh at him on air when he refused to answer the question and repeated the propaganda. So power prices have dropped by two thirds to bring them back to pre Carbon Tax days? I thought so!

    • 0
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      Where talking about the “Greedy Australian” here. Don’t hold your breath or Heaven will be closer than you think.

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      When the carbon tax came off my power bill the unit cost reduced by 2 cents. To save $500 my bil would have needed to be 25,000 units or $6,250 per annum. Thankfully my power bill is less than my pension.

    • 0
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      But higher than My wishes !

    • 0
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      Thanks Petrrj you now appear to have confused half a dozen respondents who don’t know their internet from their electricity, and mick just appears to rant on about anything….. and bye the bye mick, Tony Jones didn’t laugh at him because Jones actually got the question wrong….

    • 0
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      peterrj don’t hold your breath funerals wont get any cheaper

    • 0
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      @Bonny $42 for electricity? Can I have the name of your provider I need to switch.

  2. 0
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    The possible saving of approx $100 Per year for my internet use is not going to make much of a difference to me. That’s assuming that the ful amount is passed on which is probably not going to happen. I will still stay with the company that provides me with the best and most reliable service. For me that is Optus. Telstra are to expensive. I’m told TPG are good and I have heard that iiNET are one of the most complained about companies.

    • 0
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      Your not wrong about Telstra not only are they pricey, but when school holidays are on if you are on a lower rate it is not much better service than the old dial up used to be. but they tie you into a contract, will have to have a change when that goes

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      You are right moke
      My Internet also slows down after school is out and on the kids hols … this happened both when I belonged to TPG and now that I am with Telstra.
      Come on NBN.

    • 0
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      iinet actually actually owns a few other providers.
      A relative of mine was with another provider for her mobile phone and was unknowingly change to TPG. She had changed from on supplier to another one about 12 months before. She reckoned TPG was the worst she had ever had service-wise, and to make matters worse they were expensive.

  3. 0
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    you have got to be kidding ..they last unkept promise was a power price cut….do you honestly think that Telstra will reduce their charges and do we really believe the providers will follow??? ..Satellite internet users will be left out as usual….
    aaa not n my lifetime…

  4. 0
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    yep just saw a pig flying past my window, so a price reduction will happen.

  5. 0
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    We can’t even get ADSL2 yet on the Peninsula. I pay twice city prices for half the speed and gigs.

  6. 0
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    I think if it is good for consumers then we should be get the savings,they have stated that we are suppose to get a electricity cut but so far that has not been forthcoming and if we do get a cut in Internet services I guess that would be a bonus,so far there has been no saving to me for electricity this is a complete fantasy with the government and companies so therefore anything they tell me I do not trust

  7. 0
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    Goodo now for them to do the same for the overinflated phone call costs.

    An election is in the wind. heads should roll if no cuts are passed on to the poor and those that have become poorer since no cuts Tony became the man of a thousand cuts.

    • 0
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      Are you bad mouthing the Cut King of Canberra ? 🙂

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      I don’t want to seem to be supporting the current dishonest government but in all fairness I think that phone costs have actually gone down over the years. I get 50 Gb of broadband, my phone rental costs and all local and Australia wide calls for under $70 a month. I think this is quite ok but maybe I am wrong.

    • 0
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      Its VERY Wrong in this Country ! I get 100 Gigs a month with Telstra (no other choice) and the most I can use, trying to download Music and anything that takes my fancy (or not) is roughly 20 Gigs ? It costs a Hundred Bucks a month, Bundled with Mobile and Home Phone. What a Rip Off !! 🙁 And that’s the Pensioners deal in this Land of Milk and Honey !! 🙂

    • 0
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      Yep we are on the same Bundle particolor. Only use 10 to 15 Gigs but the 100% free landline anywhere in Aus is a big asset. I pay 70 bucks every pension day and every 4 or 5 pensions when my credit gets to $100 plus I miss paying the 70 bucks.

    • 0
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      I do exactly the same Simmo !! 🙂
      But I’m dicing with the Idea now of Dumping the lot and getting a Pre paid Mobile only ?
      Everything You do now they tell you get on the Net ? Pensioners Should get Half Price at least !

    • 0
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      Good to see you back on Particolor.

    • 0
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      Join their Wi-Fi network which uses a part of home broadband allowance at thousands of hotspots across Australia and at over 15 million Fon Spots overseas.

      So when you’re out and about, using your Wi-Fi enabled laptop, tablet or smartphone their Air App will be able to automatically connect to your nearest hospot.

  8. 0
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    It will be the first thing to fall in this country since Federation !

  9. 0
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    I pay $24.00 a month for my internet in Thailand. It’s fast, reliable, excellent wi-fi, and it has no limit. I can use it 24/7 if I want to. My TV (computer) is linked with this and I get 16 UK TV stations. Everybody is connected, and the internet companies are making a profit, so what’s happening in Oz?

    • 0
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      Simple we get ripped off.

    • 0
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      Overseas visitors are used to having Wifi internet included in their accommodation charges and not happy having to pay extra for it.

    • 0
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      There is not a coffee shop, restaurant or hotel that I’ve seen in Thailand in the past 4 years, which does not have totally FREE internet. The passwords are on display so you don’t even have to ask. A new shopping mall in Chiang Mai has part of the top floor dedicated to students where they can chat, study, use the internet, snack, and it’s totally free. As I can’t understand Thai, I watch overseas and Aussie+ TV via my wi-fi, and no limit.

    • 0
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      I’ve heard the Fried Rice is rather Yummy there too ! And Far Far cheaper than Ripoffland ? 🙂

  10. 0
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    Received a letter from ActewAGL yesterday advising that my electricity price will decrease by 4.6% from 1 July, saving me about $1.53 a week ($80 a year).

    • 0
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      That’s 20 Schooners of Beer a Year ! WHOOOPEEE !! 🙂 1& a Half beers a month extra ! Id Celebrate and drink it all at once ! 🙂 HIC !!

    • 0
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      Whoa! Received a letter from ActewAGL yesterday to say that electricity pricing will decrease, whilst gas pricing will increase…..leaving us out of pocket 🙁

    • 0
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      But less out of pocket flanjam than if the electricity prices were not going down!

    • 0
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      I am with AGL at the moment, just received my (all) electricity bill, no decrease here and too dear, so now going with another provider, better discount and cheaper rates

    • 0
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      Well, all of you East Coasters at least HAVE some choice in your electricity provider! Her in WA, we only have the ONE provider; Synergy in the metro areas and Western Power (I believe) in the country areas. Try getting ANY lower rate with a monopoly!

    • 0
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      I just heard the Price Crash !! OH ! Hang on it was only a Pot plant in the fernery falling off its Perch ! 🙁

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