Yahoo Finance ‘Massive opportunity’: How to save $710 in a few clicks
Australians could save as much as $710 a year if they swapped to a more appropriate NBN plan, Mozo research released on Tuesday found.
The researchers said confusing terminology means households could ultimately overpay for their NBN plan by 48 per cent, describing this as a “massive opportunity” to save.
“During the height of Covid-19 restrictions in April, 70 per cent of Australians were working from home, many while juggling homeschooling. This added pressure on the NBN networks has really given consumers the chance to see just how their NBN provider performs,” said Mozo director Kirsty Lamont.
“NBN is relatively new to most Australians so it can be hard to know what to expect in terms of pricing and quality. Mozo research found you could save up to $710 off your NBN plan by switching to a more competitive provider, highlighting not all plans are created equally.”
How do I switch NBN providers?
There are three main considerations when choosing a provider: the price of the service, the speed of downloads and whether you’ll sign onto a monthly agreement or a contract.
Generally speaking, providers will have cheaper deals for those on 12 and 24 month contracts. Mozo used Belong as an example: its starter package has a download speed of 50mbps and its 12 month contract is $120 cheaper than paying month-to-month.
But that doesn’t mean you should just sign up to a long-term contract.
“When it comes to home internet, it can be best to try before you lock into a long contract,” Lamont said.
“Often advertised download speeds can vary from provider to provider. If fast downloads are important to your family or business, it might be best to try one provider for a month and then look to move to a contract if you are happy with the speed and service.”
Mozo said 50mbps is generally enough for one or two people in a household hoping to stream tv or music at the same time. If there are more people in the household and more people online at once, 100mbps will be better.
And make sure you’re getting what you’re paying for.
“Since most NBN plans are unlimited, it’s really important to make sure you’re not paying too much for the same download speeds. Each provider has a different network, so their download speeds will vary depending on your location, but essentially you could be paying 48 per cent more for the same download speed.”
Which is the most affordable NBN provider in 2020?
Based on the minimum cost of the plan, set-up costs, monthly fees and cheapest modem available, Belong was the cheapest.
