NBN customers paying higher prices for slower speeds

Font Size:

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?


NBN cost blowout

The National Broadband Network (NBN) will need an additional $8 billion in funding.

NBN rollout enters metropolitan phase

The NBN rollout reached the halfway mark on Monday.

NBN broadband or fraudband?

You could be waiting much longer than you thought for NBN boradband.

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?



Sign-up to the YourLifeChoices Enewsletter

continue reading

Finance News

How much you can save on electricity in your home state

As we prepare to head into the colder winter months, there is good news for those worried about heating costs...


What is thrombocytopenia, and why did it stop the AstraZeneca jab?

Anthony Zulli, Victoria University; Maja Husaric, Victoria University; Maximilian de Courten, Victoria University, and Vasso Apostolopoulos, Victoria University Australia's medical...


Ways to manage death anxiety

Winston Churchill once said: "Any man who says he is not afraid of death is a liar." But while it's...

Food and Recipes

Rick Stein's Autumn Vegie Soup

"One of the rather pathetic realities of the fact that so many of the restaurants in France are disappointing these...


Australians give big thumbs down to the public service

Only 27 per cent of Australians believe the public service acts in the public interest and only 22 per cent...

Brain health

Normal tension glaucoma linked to cognitive impairment

Australian researchers say they have established a link between the eye condition glaucoma and cognitive impairment, the state that often...


Old wives' tales put to the test

Alice Shaw-Beckett, from cleaning company Cleanipedia, dissects 13 old wives' tales related to cleaning and pest control to discover whether...

Travel & Motoring

Consider this when deciding on a roadside assist deal

A reader raised an interesting point that I hadn’t considered before. When she bought her new car, it included -...