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Telco warns of internet price rise after NBN bandwidth bonus expires

Published: (Updated: ) in Australian News by .

Home internet could be about to get more expensive due to changes brought on by the COVID-19 pandemic.

Home internet could be about to get more expensive due to changes brought on by the COVID-19 pandemic.

The National Broadband Network (NBN) helped make sure Australians had enough high speed internet during the peak of the crisis, when many were working from home, but that's about to end.

When accountant Anita Ryan was told to work from home, she knew she'd be pushing her home internet to the limit.

"I knew what I'd be on for, logged in all day chewing up the bandwidth," Ms Ryan said.

NBN came to the rescue when it started to provide additional bandwidth capcity at no extra cost.

If you were to think of NBN like a toll road, prior to COVID-19 the amount of traffic only justified a few lanes being open.

But when we started working and schooling from home - demand increased so the NBN opened up extra lanes for free.

With just over 30 days until that extra capacity is taken away on August 19, internet companies are warning customers will have to make some tough decisions.

"We believe that providers will have to make a choice of either raising retail prices or lowering the peak time speeds," Peter Britt said, Aussie BroadBand's managing director.

"The telcos have adjusted to have so much data and speed for their customers that if their customers want to maintain that, they're going to have to pay.

"That's just simply how the NBN is structured."

With the nation's internet use 10 per cent higher than predicted for July this year, Aussie Broadband is calling on the NBN to extend its extra service.

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"People are still staying home more using their internet for more streaming more work from home," Mr Britt said.

Even if the NBN extends its offer retailers fear it is a band-aid solution and are calling for widespread changes to how the NBN sells its bandwidth so they can offer customers better deals.

"The NBN should be providing this service because australian's need it. We shouldn't be talking about money or service or costs we should just be getting what we need in a time of crisis," Nine's tech expert Trevor Long said.

The NBN expects to provide an update in coming days.

Source: 9News

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