This broadband hack can keep your internet costs low

If you’ve recently received a message from your internet provider that your bill will be going up soon, you’re not alone. There’s a price rise coming next month. Data from financial marketplace Compare Club suggests that for many internet bills will rise by $5 or more a month, not ideal when household budgets are already so tight.

But while this could be seen as just another cost-of-living expense we have to swallow, there are also a few tactics that can be employed to keep internet costs manageable.

So why are broadband prices rising?

Due to an increase in the NBN’s wholesale prices, broadband prices overall will increase from 1 July. The NBN provides the infrastructure for all internet services across Australia and supplies all retailers – meaning that anytime NBN raises its prices, the costs are generally passed onto consumers.

But there’s also a flipside: many internet retailers are desperate to lure you with ‘honeymoon deals’. These are heavily discounted introductory rates that you can take advantage of. 

For example, some retailers are – at the time of writing – offering $50 per month for unlimited data on a 50Mbps speed plan and for larger households, NBN 100 speed plans are available for around $80 per month. Some plans could save you an estimated $200 in the first 12 months alone.

And there’s an additional way to save here. Provided you’re not locked into a long contract, you can switch providers again when the honeymoon deal ends. Yes, it can be a bit frustrating to have to have internet boxes reinstalled, but it’s one way to keep your broadband bills down for as long as possible.

The ACCC has advised consumers to be vigilant and shop around for better broadband prices. Many are paying more than they should due to ‘loyalty tax’ – where existing customers pay more for services than new customers. In 2023, Aussies paid a whopping $4.5 billion in loyalty tax by sticking with the same energy, broadband and mobile providers. 

Is bundling broadband the secret to saving?

Another way to save is by bundling your utilities. Many energy companies now offer electricity, gas, and broadband packages. This can result in substantial savings, with some providers offering up to six months free or an account credit as part of their competitive deals.

Compare Club’s head of research, Kate Browne, suggests that bundling utilities can save consumers more than $200 a year. “Bundling together broadband and energy can be a great way to save money on all your services,” says Ms Browne. 

“Switching broadband providers is easy and takes less time to do than you would think. It means not only do you avoid paying the loyalty tax by staying with the same provider, but you can take advantage of the best deals, which are usually reserved for new customers,” she says.

“With NBN wholesale prices set to rise on 1 July, now’s a great time to review your broadband provider and switch to a better deal.”

So what do you need to do before you switch? First, check your speed needs and make sure you’re paying for the right speed for your household. A 50Mbps plan is usually sufficient for a household of three to four people, while a single person might find a 25Mbps plan more than enough. If you’re not entirely tech savvy, ask for help.

In addition, it’s worth regularly comparing and switching providers. Kate Browne recommends checking plans at least every 12 months. There are also sites that can help you compare, such as WhistleOut for broadband and mobile plans, and Compare Club, which can review energy plans that bundle broadband for you.

Finally, don’t be afraid to try new retailers – although do your research on customer service first. Most broadband is purchased via the NBN wholesale, so for the same service you might be able to save significantly on your monthly bill.

Have you switched broadband providers recently? What tips do you have for your fellow YourLifeChoices readers? Let us know in the comments section below. 

Also read: Watchdog urges households to check internet costs