NBN Co urged to stop selling 25Mbps plans by consumer advocacy group

NBN Co has been advised to phase out NBN 25 plans and make NBN 50 the new "entry-level offer" in a new consultation paper submitted by the Australian Communications Consumer Action Network (ACCAN). 

ACCAN recommends that 50Mbps become the next plan over the next decade, pointing to NBN Co's own assumption that 65% of customers will be on 100Mbps plans by the end of the 2029 financial year. 

"Given NBN Co’s interest in greater investment in 2Gbps services and its advocacy for faster internet speeds, ACCAN requests NBN Co to provide its rationale for retaining the [25Mbps] category as the entry-level Offer, among other affordability concerns for low-income and low-use consumers," wrote the organisation in the paper. 

"ACCAN recommends NBN Co to give greater consideration to increasing the speed, and reducing the price of the entry-level offer, in order to secure faster internet speeds for Australian consumers who would benefit from the stricter price controls that such a plan offers."

The consumer advocacy group also has concerns around the network builder's push into NBN plans promising speeds of 2Gbps or more. It said that NBN CO has not provided "sufficient evidence or justification" for why NBN 2000 plans are needed, and that suggested factors like an "increase in time spent online" or new technology like augmented and virtual reality have not been "adequately substantiated". 

ACCAN said that NBN Co's listed benefits of faster speeds "point towards fringe cases of emerging technology" as opposed to meeting the expected needs of consumers by the end of the 2029 financial year. 

NBN 2000 plans are set to launch in September this year, along with speed increases for NBN 100 and NBN 250 customers on FTTP and HFC technology types. 

ACCAN is the peak consumer advocacy group for telco in Australia. It received a government grant of $2.5 million to put together the consultation paper in question, to represent consumers and ensure NBN Co's service standards still meet their needs over the coming years.  

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Alex Choros

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Alex Choros is the Managing Editor of WhistleOut Australia and an award-winning journalist. He's been writing about consumer technology for over a decade and is an expert on the Australian telco sector, to the point where he knows far too many phone and internet plans by heart. In addition to leading the WhistleOut editorial team, Alex is responsible for ruining the office Sonos with his troubled taste in music.

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