NBN costs: consumers consider wireless and mobile alternatives

The National Broadband Network cost more than $50 billion to build, but that means nothing to consumers who are cutting their own costs as new technology makes alternatives attractive.

Anthony KeanePersonal finance writer

@keanemoney

3 min read

October 10, 2022 - 10:16AM

The Australian Business Network

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Cost-conscious consumers are considering switching off their NBN internet plans in favour of cheaper mobile and wireless broadband options.

It’s a popular suggestion on online budgeting forums as technology improves the speed of lower-cost alternatives, and internet companies themselves promote 4G and 5G alternatives because this earns them bigger profits.

However, it’s wise to understand the costs and limitations before turning off your NBN service.

Telco comparison website Whistleout.com says there are two key types of mobile broadband: 4G or 5G wireless home internet that comes with a traditional – and usually free – modem, and plans with a portable modem that are generally cheaper still but have data and speed restrictions.

Whistleout spokesman Alex Choros says interest in home wireless started spiking at the end of 2021, helped by the wider availability of 5G, particularly from the biggest 5G provider Telstra.

“I’ve been using Telstra 5G home internet for almost a year now, and have found it to be a very reliable experience,” he says.

“I’m getting much faster speeds than I would be if I was spending the same amount of money on an NBN plan.

“The only downside is mobile internet can be less consistent than NBN … mobile internet plans are more prone to congestion.”

NO CONTRACTS

Choros says most 4G and 5G home internet providers offer contract-free plans so customers can simply return their modem if it’s not right for them, although Optus charges penalties for pulling out within two years.

“4G and 5G home internet plans tend to be cheaper than a provider’s equivalent NBN plans,” he says.

“TPG, for example, has an unlimited 4G home internet plan with speeds capped to 20Mbps (megabits per second) for $54.99 per month, and you’ll get your first month free. On the other hand, its cheapest NBN plan is $64.99 per month, and is limited to speeds of 12Mbps (megabits per second).

Paul Gardner switched from NBN to mobile broadband. Picture: Brendan Beckett

“With Telstra, the normal price for its NBN 100 plan is $110 per month. This gets you speeds of 100Mbps. With its 5G home internet plan, it advertises average speeds of 378Mbps and charges $85 per month. And you can get your first month free.”

Choros says the cheapest 4G home internet plans have unlimited data but speeds capped at 20Mbps, which is “still more than fast enough for streaming in high definition – Netflix only requires speeds of 5Mbps”.

However, speed caps can get stretched thin in households with more than two people, as internet speed is a shared resource, he says.

“4G and 5G home internet do tend to have slower latency than traditional NBN plans, which can mean they’re less reliable for online gaming.

“If you’re looking at portable mobile broadband, most of the time, you’re looking at data allowances under 100GB … not ideal if you’re streaming every night or downloading large new release games.”

SWITCHES UNDER WAY

Mums Who Budget and Save co-founder Rachael Hallett says a lot of members on her online forum have been switching away from the NBN.

“I personally can’t do it because our usage is too high … streaming uses so much data,” she says.

“It works for a lot of people who have low usage.

“I think it’s worth looking into. You can easily see what your usage is. If it’s 30 gigabytes a month you could probably do it. If it’s a terabyte a month it’s probably not for you.”

Paul Gardner, director of sponsorship analysis agency Salesandmedia.com, is not a fan of the NBN and says it is “arguably the greatest waste of money Australia’s ever seen”.

“To have the gall to refer to this originally as nation-building project is an insult to nations, building and projects,” he says.

Gardner says he had been frustrated by constant interruptions to his NBN service, and his happiest days were working from his car where the “NBN can’t interfere”.

“I started using a portable modem as a backup and now use mobile broadband as a permanent internet service,” he says.

Whistleout’s Choros says people should match their new plan to their needs, and those who switch should make sure their existing NBN plan doesn’t have a contract or exit fees.

“Some providers will make you pay out the remainder of your modem if you leave before a certain time period – typically between two and three years,” he says.

“When you swap, cancel your NBN plan. It won’t be cancelled automatically.”

And understand that portable modems can cost between $4 and $15 month on top of your existing bill, Choros says.