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Is NBN Dropping the 12Mbps Tier?

Despite pushback from various Retail Service Providers (RSP's), NBN Co. have announced that they are standing firm in regards to moving customers off the current 12Mbps NBN plan, with preference into signing them onto the 50Mbps package instead.

This is part of the NBN's plan to offer the 50Mbps as the new standard internet package for customers, rather than the 12Mbps and the 25Mbps speeds, which were previously offered as part of NBN's four-tier pricing system. Moving forwards, the NBN will only offer the two tiers, with the premium 100Mbps package, as well as the standard 50Mbps. The new pricing scheme will come into effect after October 31 this year.

Despite protests from RSP providers in favour of those customers who may not necessarily afford to jump onto the new 50Mbps speed, the NBN are adamant in their decision, stating that the 12Mbps was never meant to be used a dedicated broadband service.

While current 12Mbps customers do not have to switch over, there is little incentive to remain on their current plan aside from the cheaper price rate. As the NBN had announced a new wholesale price of $45 for the NBN 50, it is a significant price jump for those still on the 12Mbps tier. However, their internet speeds will be drastically slower than that of the new standard package, greatly disadvantaging those who have already committed to the lower cost alternative.

While there had been a significant increase in 50Mbps customers, the NBN Chief Executive Officer Bill Morrow expressed that many of these customers had switched from the 25Mbps plan, rather than the lower-tiered 12Mbps. However, switching these customers over will be something that the NBN will be working towards as they near the October deadline, when the new pricing schemes come into effect.

It is unclear what will happen to those customers who are still on the 12Mbps tier beyond the October 31 date.

Compare NBN Broadband Plans

If you are currently on a 12Mbps or a 25Mbps NBN plan, then check out our latest NBN plans from our various broadband providers, or give us a call at 1300 321 160.

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