Internode confirms broadband will cost more under Labor’s National Broadband Network

July 22, 2011

Internet Service Provider Internode has delivered the Gillard Government a reality check on the true cost of accessing the internet under the National Broadband Network, Shadow Minister for Regional Communications Luke Hartsuyker said today.

Internode has released the cost of its NBN plans, with the most basic package starting at $60 month but increasing to $190 for the platinum 100mbps service.   Mr Hartsuyker said Internode managing director Stephen Hackett had confirmed regional Australians will pay more for their broadband and smaller Internet Service Providers will shut down under the National Broadband Network.

“The whole premise of Minister Conroy’s NBN has been access to speeds of 100mbps at an affordable price. Internode has revealed that this won’t happen.   It is clear that regional Australians are going to pay more for their broadband connection and most will have no hope of accessing 100mbps. Low income households will struggle to even afford the increased cost of the basic package.   The increased charges for regional consumers reflect how the NBN business model is fundamentally flawed. The higher costs are the result of needless duplication of the network, spending billions of dollars buying customers and billions more than what is needed to deliver high speed broadband.

“According to the NBN business model a 12 mbps plan would cost between $53-$58 a month with a 50GB bitcap. Internode has said their 12 mbps plan will cost $59.95 with a 30GB bitcap.  A 25 mbps plan was forecast to cost between $62 and $68 with a 200 GB bitcap. Internode has said their 25 mbps plan will cost $89.95 with a 200 GB bitcap. This amounts to 32 per cent increase in the cost to consumers.  And these prices are substantially higher than what is currently being delivered under ADSL2.

“NBN Co had no choice to impose additional wholesale charges because the Government’s original figures were so dodgy.  In the end, these charges will flow through to all internet users.  This $36 billion NBN is simply not value for money and won’t deliver any meaningful improvement in internet services for most regional Australians. The only difference will be we will pay more for our broadband and there will be less competition in the regional marketplace.”

 

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