How to save money when paying for home internet services

Making a smart connection to your internet expenses can save you hundreds of dollars a year, without any impact on speed.

Anthony KeanePersonal finance writer

@keanemoney

3 min read

October 9, 2024 - 3:00PM

The Australian Business Network

Saving money on internet can bring a smile to your face. Picture: Supplied

National

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Internet costs don’t grab headlines like the big household bills of energy, groceries and insurance do, but they could be unnecessarily losing you hundreds of dollars a year.

New players and offers regularly enter the internet market, so it pays to avoid being too attached to one provider – especially if you are unsure whether you are getting value for money.

Home internet typically costs between $60 and $130 a month and some people make an expensive mistake of doubling up on services, or paying much more than they need to for their data usage.

Mobile provider amaysim branched into offering NBN services last month, and its chief commercial officer Ged Witenden says there is a perception that the big players dominate the market and smaller internet providers may not offer the same reliability.

However, topping the list of internet providers rated by telecommunications comparison service Whistleout.com.au are names such as Tangerine, Superloop, Dodo and Swoop – although big guns Telstra and Optus do get a mention for their superfast home wireless services.

SWITCH AND SAVE

“People often believe that switching is a hassle that takes up too much time and can cause potential service disruptions,” Witenden says.

“Switching providers can result in significant savings, especially when you look beyond the traditional big players,” he says.

Whistleout.com.au spokesman Alex Choros says telecommunications can feel complicated and people worry about downgrading to a worse service.

“And there’s always the fact switching feels like work,” he says.

“There are pretty solid discounts to be had by switching, however.

“Tangerine, for example, charges $65.90 for the first six months of its NBN 100 plan, then $85.90 per month. Aussie Broadband’s new budget brand Buddy Telco charges $85 per month.”

Ged Witenden from amaysim

Alex Choros from Whistleout.com.au

Choros says there is a large spread in internet plan costs at the moment.

“Slower, more affordable plans start at around $60 per month thanks to honeymoon discounts, where you’ll get a cheaper rate for your first six months, but you can pay over $130 per month for the very fastest NBN plans,” he says.

“Around $85 per month is a pretty reasonable price to pay for NBN 100, which should be more than fast enough for more households.

“Telstra charges $110 per month for NBN 100. That’s a $25 per month saving by swapping from a Telstra to a cheaper provider, or $300 over the course of the year.”

Choros says there are plenty of smaller providers with cheaper plans.

“The important thing to note is that while you might not be familiar with a provider, they’re still reselling access to the exact same NBN that the large providers are,” he says.

“In most cases, your NBN experience should be pretty similar.”

CHECK FOR TRAPS

Traps when paying for internet include buying the fastest speeds and not taking advantage of them, and modem fees that can be a “lock-in”, Choros says.

“Some providers will give you a ‘free’ modem when you sign up to a plan, but you may need to pay it out if you leave within your first two or three years, depending on the provider, he says.

Witenden agrees that paying for services you don’t use is a big cost trap.

“For example, many consumers are paying for both high-speed mobile data and an expensive home internet plan without realising they could find better value by bundling services,” he says.

“Another common issue is paying for equipment like modems on rental, which adds to the overall cost unnecessarily.”