Telstra, Foxtel: Why struggling Aussies are about to be slugged even more for their internet bill – so how much more will you pay?

Millions of Australians could have mixed feelings about receiving their next home internet bill, as major telcos increase their prices on NBN plans with slower speeds – although others will see a reduction.

Telstra, Optus, Foxtel and Aussie Broadband have all announced that price increases will come into effect at the end of November for their 25 and 50 MB/s plans.

Telstra’s basic plan will increase by $5 per month, while Foxtel expects a $10 monthly increase.

And some Optus plans will increase by $6 for existing customers.

The changes come after the National Broadband Network’s new pricing agreement, which comes into effect from December 1, was approved by the Australian Competition and Consumer Commission (ACCC).

Under the new plan, NBN will reduce wholesale prices on all but one data plan, with the biggest price cuts coming to the two lowest speed plans, 15 and 25MB/s, and the highest speed plan, 1000MB/s.

However, the service fee, known as CVC, which is being removed for high-speed plans, will still be charged at speed levels of 50MB/s and below, which will be reduced annually until completely removed on July 1, 2026.

Aussie Broadband Managing Director Phillip Butt has linked these costs to the telco’s looming price hike.

“By not only continuing to charge CVC, but doing so on an individual basis, NBN has effectively forced us to increase prices for the majority of our broadband customers – at a time of heightened financial uncertainty,” he said .

“Regardless of the reasons, we know this will hurt some customers, and we are here to help. Our customer service teams are ready to support our customers and find solutions to keep Aussies as connected as possible during financial hardship.”

Aussie Broadband 12mb, 25mb and 50mb plans will all increase by $6 per month, while prices will fall for high-speed plans of 100mb and above.

Telstra will also increase the cost of some plans and reduce the cost of others, with the changes coming into effect from Wednesday.

Telstra linked their price changes to factors such as lower profit margins on home internet subscriptions, Canstar Blue reported.

“We believe now is the right time to look at our plans and make some changes that will respond to this and improve the economics of our fixed operations,” a Telstra spokesperson said.

“Our Basic and Essential plans will increase by $5 per month, as will our Business Essential plan.”

However, Telstra has also ‘taken steps to protect concession and low-income customers’ by keeping their $10 concession credit Voice plan and the $65 starter internet plan for their most vulnerable customers.

Their Superfast plan is reduced in price by $5, and the Ultrafast plan by $10.

Telstra, Optus, Foxtel and Aussie Broadband have all announced price increases, with Telstra’s basic plan increasing by $5 per month and Foxtel increasing by $10 per month (stock image)

Optus said it reviews the awards annually.

“Over the past three years we have seen internet usage increase as more of our customers work from home, play online games and stream entertainment,” an Optus spokesperson said.

“Optus is paying more to provide that NBN service and it is imperative that we adjust our market NBN prices accordingly.”

TPG Telecom, which oversees both TPG and iiNet, said it was pleased with the deal with NBN Co.

“However, we must also recognize that this new pricing structure allows NBN to link the cost of its services to inflation, which will ultimately have a downstream impact on consumers,” a TPG Telecom spokesperson said.

‘From time to time we review our prices and customer offers for our brands with the aim of being competitive. We will always work to keep our customers informed if we change our prices.”

At the time of writing, the company had not announced any changes to its pricing structure.

Telstra will also increase the cost of some plans and reduce the cost of others, with the changes coming into effect from Wednesday (stock image)

The ACCC said earlier in October it had accepted NBN Co’s proposed amendment to the Special Access Undertaking (SAU), ‘which includes measures designed to protect consumers from sharp price increases, reduce barriers to entry for new retailers and increase incentives to solve systemic issues driving the poor NBN consumer experience.”

The MSI actually sets the rules for how providers gain access to the broadband network.

“We are satisfied that NBN Co’s latest SAU variation proposal advances the long-term interests of Australians, which is the primary purpose of the test we must adopt,” ACCC Commissioner Anna Brakey said.

In a statement released earlier this week, a spokesperson for NBN Co said wholesale prices had not increased in real terms over the past decade, and said the changes to the way charges are calculated would protect Australians from price shocks on the long term.

‘NBN Co does not set retail prices; that’s a matter for internet retailers,” he says.

“But with customer data demand effectively doubling every three years, wholesale and retail prices of broadband services would likely become significantly more expensive in the future if we do nothing and change the structure of our wholesale prices.”