Australian Consumer Telco Pricing – Q3 FY24 Update

NBN Co targets 500 Mbps speeds to defend high-ARPU tiers against 5G FWA while RSPs rebalance pricing.

Heath Gibson · Executive Manager – Industry Intelligence and Insights at NBN Australia15 April 2024Period: Q3 FY244 min read

500 Mbps↑

Proposed NBN 'Fast' tier download speed

69%→

Prepaid/MVNO plans priced below $49pm

Locked

+1more stats

Companies covered:

Abstract

This report analyses the Australian consumer telco pricing landscape for Q3 FY24, highlighting NBN Co's proposal to increase its 'Fast' speed tier from 100 Mbps to 500 Mbps. It examines the competitive dynamics between NBN and Fixed Wireless Access (FWA), Telstra's new Starlink-powered satellite offering, and significant pricing shifts in the mobile market. The analysis focuses on how Retail Service Providers (RSPs) like TPG are implementing aggressive price cuts on high-speed tiers while increasing entry-level costs.

Key Takeaways

NBN Co proposes a 5x speed increase for its 'Fast' tier to 500 Mbps to drive fibre migration and defend against 5G FWA.
TPG has implemented the market's largest price cuts for high-speed tiers, reducing Ultrafast plans by $40 per month.
Telstra launched a $125 per month Starlink-powered satellite service, undercutting Starlink's direct price by $14.

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Frequently Asked Questions

NBN Co is proposing a five-fold increase to its 'Fast' tier download speeds, moving from 100 Mbps to 500 Mbps to defend its market share. This upgrade is a direct response to 5G Home performance gains, where Telstra’s typical evening speeds reached 548 Mbps in Q3, up from 336 Mbps in the previous quarter.

A definitive price-break has formed at $49 per month, with 69% of all MVNO and prepaid plans now sitting below this level. While budget tiers remain crowded, major providers are pushing postpaid costs higher, highlighted by Vodafone’s $4 per month increase on SIM plans.

RSPs are utilizing aggressive discounting and credits, with TPG slashing Ultrafast plan prices by $40 per month. Additionally, TPG and iiNet are offering $250 credits to incentivize customers to upgrade to high-speed NBN tiers.

Telstra has launched a Starlink-powered satellite service priced at $125 per month. This wholesale-based offering undercuts Starlink’s direct retail price by $14 per month, signaling a new phase of competition in the satellite segment.

Australian Consumer Telco Pricing – Q3 FY24 Update

Abstract

Key Takeaways

Frequently Asked Questions

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