NBN: Ripping you off by the gigabyte

Australia, if the carbon tax hasn’t put the nails in the coffin for Julia Gillard‘s Labor government re-election hopes, these National Broadband Network (NBN) internet pricing figures should.

  • Bronze package:
    12/1 Mbps: 30GB  $59.95, 200GB $79.95, 300GB  $99.95, 1TB  $149.95
  • Silver package:
    25/5 Mbps: 30GB $69.95, 200GB  $89.95, 300GB $109.95, 1TB  $159.95
  • Gold package:
    50/20 Mbps: 30GB  $79.95, 200GB $99.95,  300GB $119.95, 1TB  $169.95
  • Platinum package:
    100/40 Mbps: 30GB $99.95,  200GB $119.95, 300GB $139.95, 1TB $189.95

These prices were released by Internode yesterday evening, together with a loud “don’t shoot the messenger” claim that they have been forced into charging these blatant rip-off prices for NBN-based phone and broadband bundled packages thanks to the NBN’s ridiculous wholesale charging model.

The  first thing you should notice is that the so-called “Silver Package” gives residential customers the exact same speeds you currently get through your existing ADSL2+ connection. It’s true. Yet, it will cost you $20 more per month, for considerably less download allowance.

This is as good a time as any to yell “FUCKING BULLSHIT” at your desk.

In comparison, Telstra, the most expensive ISP in the country, currently charge $49.95 for 50GB per month, at the exact same fucking speed.

Current plans for the average home are $39.95 a month for unlimited, uncapped downloads through TPG at ADSL2+ (24Mbps), while Internode gives users 150GB per month of ADSL 2+ speeds for a reasonable $59.95.

So, just when you thought Australia might be waking the fuck up and ditching the restrictive “by the gigabyte” model that almost every other country in the world has long since dropped, boy are you in for a shock. The Internet may one day be a “basic right”, but that day is way off considering these backwards charging figures.

Pray this is merely an NBN error that is soon corrected. Else, so much for Kevin Rudd’s & Julia Gillard’s election promise of “super fast internet to every household in Australia“. The only people who will truly be able to afford the advertised 100Mbps optical speeds are once again only the elite and wealthy. In other words, as a nation we have elected to spend AUD $43 billion (US $47 billion) of our taxpayer’s dollars so that the rich can enjoy the 100Mbps super fast broadband speeds (the whole point of the NBN) while the everyday Aussie is slogged with the bill: $240-$480 extra per year… for absolutely no upgrade to their current basic broadband service.

In August, 2010, Julia Gillard publicly declared that her so-called “win” with the NBN deal meant “taxpayers will pay no more for a national broadband network, able to provide speeds 10 times faster than originally envisaged.

“Residents in the Tasmanian towns with access to the fibre are paying introductory prices from $29.95 a month for 25 megabits a second to $59.95 a month for 100 megabits a second through three internet providers,” she said.

According to Internode’s revealed prices above, this has turned out to be 100% blatant bullshit.

But it’s actually as fast as it say it is, right?

No, you will not actually be experiencing the speeds listed above. Like ADSL2+, these optical fibre NBN speeds are theoretical maximums and do not indicate the practical speed experienced in the home once limiting factors are taken into account. For the most expensive plan for example, at the government-advertised theoretical maximum of 100Mbps, reportedly, users can typically experience actual download speeds of between 15Mbps and 51Mbps.

“Connection speeds refer to the speed delivered to the fibre technology installed at the customer’s premises. These are the maximum theoretical speeds which can be achieved by the connection.

“Maximum theoretical speeds are limited by many external factors which impact the speed of data uploads and downloads (referred to as “throughput”). Factors which affect the actual speed of data transferred at any point in time include: the source of the data you are receiving, the Internet connection speed and the level of internet traffic.”

Source: http://www.iprimus.com.au/​PrimusWeb/HomeSolutions/Fi​bretotheHome/SpeedsandPerf​ormance.htm

In the wake of announcing massive tax cuts and handouts to help sell her controversial carbon tax to struggling households about to be hit with the largest level of instant inflation Australia has seen, I will be surprised – and economically concerned – if Julia Gillard tries to promise further billion-dollar handouts to subsidise the costs of the NBN to everyday Australians.

It’s time to get mad. You have been ripped off, well and truly.

Australians flip out as they realise they're going to be financially worse off for no improvement to their Internet broadband service under NBN pricing schemes agreed by Labor and NBN Co.


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Categories: Business, Politics, Law, Science, Technology

Author:Andrew Beato

CEO, Chief Editor and founder of Intentious. Passionate comment enthusiast, amateur philosopher, Quora contributor, audiobook and general knowledge addict.

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3 Comments on “NBN: Ripping you off by the gigabyte”

  1. richard
    July 22, 2011 at 11:38 am #

    Everything this government touches turns to dross

    i will await the final price figures but am not optimistic. They want to drop a huge amount of money into AND make it profitable in five-ten years AND build out the country areas first (ie not profitable areas first)

    government doing it badly… again…

  2. Aleks Witko
    August 9, 2011 at 6:22 pm #

    We pay more AND we’re giving them control.

    They also want to choose what we can access…


    … this is democracy?

  3. Bill
    February 6, 2013 at 2:00 pm #

    I’m with Internode (not that that matters) I currently have ADSL2 24mbps 150gig a month for 59.95 (roughly) I haven’t seen anything so far in NBN plans that come close to that without losing a lot of quota. What’s the point of lightening speed if you’re going to burn through your quota in a week and be shaped for 3 ?

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