NBN customers paying higher prices for slower speeds

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Millions of Australians forced onto the NBN will pay more for slower speeds, and they’ll also be forced to foot the bill for the money borrowed to pay for the network’s construction.

So far, the NBN has cost around $49 billion in construction costs. To recoup this money, NBN Co charges telcos higher bandwidth fees. These charges will be passed onto the customer in the form of scaled back speeds at certain times of the day.

NBN Co charges telcos around $10 to $14 per 1Mbps of bandwidth they buy, depending on how much they purchase. These high costs mean that telcos only buy around 1Mbps for each customer on a 25Mbps plan.

As a result, during peak times, some NBN customers may experience speeds up to 1/40 of what they now get – even though they are paying the same or more for ‘faster’ services.

NBN providers have been flooded by complaints from customers saying that their connections are much slower than the speeds they previously enjoyed. One customer is receiving speeds up to 1/100 of what he believes he has paid for.

“As everyone else, I am getting 1 per cent (1 megabit per second or even less) of contracted speed (100Mbps) during peak times,” said the user. “After searching around I could see this is really a common Optus problem all around the country.”

Another user added: “Simply put, they [telcos] don’t purchase enough bandwidth from the NBN. They buy enough for 10 people but sell it to 100 people, so at peak times it’s useless.”

Are you connected to the NBN? Are you having similar problems? Or are you happy with your product?

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Written by Leon Della Bosca

Leon Della Bosca is a voracious reader who loves words. You'll often find him spending time in galleries, writing, designing, painting, drawing, or photographing and documenting street art. He has a publishing and graphic design background and loves movies and music, but then, who doesn’t?

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22 Comments

Total Comments: 22
  1. 0
    0

    Like everything else he fiddles with…Hal-al Mal changed how it was delivered and the Structural Admin…..
    ow it is overpriced and cannot deliver!
    LIke any Millioaire…its about making money without delivering.

    • 0
      0

      Did you read the article? It doesn’t have anything to do with how it was delivered, it is because the ISPs are skimping on how much bandwidth they buy. If they bought more bandwidth it wouldn’t be a problem. If the fibre to the home had continued it would be even more expensive and therefore probably an even greater problem. If you go with some of the cheaper providers this is the problem that you will encounter.
      Why do some people have to drag politics into EVERYTHING? Stick to the context of the article and don’t drag it down to a political discussion!

  2. 0
    0

    Isn’t this deceptive trading under the trade practices act?

  3. 0
    0

    It is not just the internet that is affected it is also your phone service
    If there is a blackout you have NO phone and NO internet.
    We are indeed a third world country, maybe fourth world country as many of the third world countries have better infrastructure than we have.

  4. 0
    0

    If, as the numbers above indicate, the Telcos are buying for $1.40 the bandwidth they sell you for $60 or even $30 then they are ripping us off! Given the poor service they deliver, they are not employing enough staff to justify such a huge markup which NO other business enjoys!

  5. 0
    0

    Hopeless NBN. Hopeless wireless. Just hopeless. Can’t fill out an online form without timing out, takes aaaages to even load a page. I am sick of the internet, I use it less and less, if I had the choice I would disconnect altogether but we are forced to have it. Perhaps the government should be subsidising us to use their crappy Nbn.

  6. 0
    0

    Since our speed is already only in the low kB range <300kBs & then often fails completely, ,especially on friday nights, I hate to think what we may get

  7. 0
    0

    So far so good. My speed before NBN was around 10mbs now it is at most times 20mbs.
    Unfortunately in about 18 months we will all have to suffer NBN.

  8. 0
    0

    My NBN is just so much better and a lot cheaper than the old ADSL plus I get a phone on the copper network with extras thrown in for free. No buffeting even though there can be up to 10 devices in the house running on it at once.

  9. 0
    0

    I put on the NBN not too long ago. Happy with the results but then I am only on the lowest plan and am getting broadband speeds in peak times and 10 Mbps others.
    If you want to know why our NBN is substandard then look no further than its architect Malcolm Turnbull. He is the person who pushed a whole pile of nonsense solutions and then gave us crap compared to the proper NBN we all should have gotten, and the price was the same.

    • 0
      0

      I thought Rudd and Conroy were the architects MICK.

    • 0
      0

      No It’s just old technology and better technology is already available.

    • 0
      0

      Rudd and Conroy were the architects of fibre to the home.

      Turnbull butchered this and turned it into fibre to the node system. When he did that a whole pile of new costs came in with exchange gear needing to be modified so that his second rate system could run.
      So we ended up with a second rate system whose price is more than the original. The media never run that story of course and the guilty are never named.

  10. 0
    0

    I would like someone to tell us how the hell we can get justice here there seems to be thousands of complaints a year yet no one is listening if private industry wAs to serve up this crap fair trading would have them nailed to the wall how come the NBN co and ISP’S can treat us so poorly and we just have to pay up and shut up just maybe we all need to start up a petition on line such as change .org and sent it to the pollys thats the only thing that makes them take notice oz is the laughing stock of the world even poor countrys have superior internet this system is a national disgrace lets all make it an issue for next election hell that will rock the boat if we do nothing we will get nothing I like so many others have had a gut full of this crappy service

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