Are you overpaying for internet speeds you don’t need?

Australian households are wasting hundreds of dollars each year on unnecessarily high internet speeds.

Fast internet is a must-have – but new research reveals most Australians are overspending on speeds they barely use.

Faced with cost of living hikes, almost half of Australians struggle to afford an appropriate internet connection or digital device, yet many are paying for internet speeds they’ll never use. 

Recent research by digital inclusion group, Good Things also found 14 per cent of Australians struggle to afford their internet bill, while one in six have chosen between paying for digital connection or devices, and essentials such as food and housing. 

Separate findings from internet provider SpinTel suggest most of us shouldn’t be paying so much for our connection. The new survey of over 1000 Australian households found widespread misconceptions about internet speeds have resulted in the average consumer paying hundreds of dollars each year on unnecessary bandwidth. 

SpinTel’s research found that even though Australian consumers are highly sensitive to internet costs (a third were willing to switch providers for even a minor saving), 70 per cent said they would never consider a slower plan as a way of saving money. This is despite the fact that the most common online activities - like streaming, browsing, social media and online shopping - don’t require high bandwidth.

Consumers are reluctant to consider a slower internet plan as a money-saving option.

Unless you're a seasoned day trader or a serious gamer, you’re probably paying for internet speeds you’ll never use, according to SpinTel CEO Liam Bal. Among the majority of consumers who believe faster is better when it comes to internet speeds, many are paying up to $50 per month extra for high-speed plans.

Mr Bal said marketing and industry messaging has reinforced this “deeply ingrained perception” that higher speeds mean better performance. “In reality, a typical household of one or two users streaming, video conferencing and browsing would be fine with a 50Mbps plan,” he said. 

“If a household isn’t regularly engaging in high-bandwidth activities like 4K streaming, large file uploads, or online gaming on multiple devices at once, they more than likely are overpaying.”

Liam Bal, CEO SpinTel

Even for small businesses and hybrid workers, reliability and consistency are more relevant to internet performance than raw speed. “A stable connection with adequate upload and download speeds is crucial for video conferencing, file transfers and cloud applications,” Mr Bal said.  “Many professionals overestimate their speed needs when a well-optimised 50Mbps or 100Mbps plan is more than sufficient. Additionally, choosing a provider that offers business-grade support, flexible plans and cost-savings for multiple services, ensures optimal performance without excessive costs.”

Bundling is another area where consumers may be missing out on savings, according to SpinTel’s research, with 40 per cent of consumers saying they don’t bundle their phone, internet and other telco services due to confusion or mistrust. “Many are hesitant to put all their eggs in one basket or fear losing control over individual services, holding them back from considering this cost-saving option,” Mr Bal said. 

Calling on the broader industry to step up and be more transparent, Mr Bal said providers have a clear opportunity to alleviate confusion and build trust with consumers: “Providing better education on what speeds are actually needed for daily activities can help customers save money and feel more confident in their choices.”

Tips to avoid overspending on internet

Look for flexibility
Plans with no lock-in contracts will enable you to move between providers and plans when cheaper options arise, or when your needs change. 

Bundle and save
Consider bundling phone and internet services into one provider, for all household members, to take advantage of provider discounts. 

Rethink your need for speed
Most households don’t need speeds above 50-100Mbps unless they have multiple users engaging in high-bandwidth activities simultaneously. 

Understand usage
Internet speed requirements for common uses are as follows; 

Spotify: 0.5Mbps 

Netflix: from 3Mbps for standard definition to 15Mbps for ultra-high definition

One-on-one Zoom call: 2Mbps

Web browsing: 3-5Mbps

Gaming: 25Mbps download and 1Mbps upload (at minimum)

Source: SpinTel.

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SpinTel is one of the largest independently-owned internet service providers in Australia, offering residential and business telecommunications, powered by the Optus Mobile Network. Awarded as Australia’s best provider across Mobile, NBN, Internet, and Broadband by WhistleOut, Product Review, Canstar Blue, Finder, and Money Magazine, SpinTel is one of the most popular Australian ISPs on ProductReview with a rating of 4.4 from over 10,986 reviews.

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