It's normal for us to want to get the most value out of any financial decision we make. One area I really appreciate, and where cost effectiveness really matters, is NBN plans. The potential value available to millions of Australians has increased exponentially in the last month following the arrival of NBN speed upgrades in September, which have boosted residential internet connections for eligible households at no additional cost.
I've talked before about how affordable the NBN 500 plans are and why they're ultimately my top pick for anyone looking to achieve impressive download speeds without breaking the bank. However, if you want or need download speeds above 500Mbps, you may be tempted by an NBN 750 plan.
If that's you, stop what you're doing and listen for a moment. While the new level of speed may seem great on paper, upgrading a little further to one of the best NBN 1000 plans is the smartest decision financially in my opinion. Let me explain to you…
Upgrading can save you money
It's fair to assume that the more you offer a particular product or service, the more you'll have to pay for it. In most product categories, that's true, but NBN plans are completely different, as Internet Service Providers (ISPs) are ultimately free to charge whatever they want.
This is why if you shop around (don't worry, you don't actually have to, because I've done the legwork for you), you can get a super-fast Gigabit Internet plan for the same cost as a slower 750Mbps plan. In fact, you can even save up to AU$34 a month by upgrading your plan.
the mathematics
Don't you believe me? Let me take my favorite example of an NBN 1000 plan from Buddy Telco. The fledgling provider is only a little over a year old, but its gigabit plan remains my favorite since launch and maintains its exceptionally affordable AU$99 monthly rate.
By comparison, of the 16 NBN 750 plan providers I monitor, only two charge less than AU$99: Flip (AU$89.90) and Kogan (AU$94.90).
The next cheapest providers are TPG, iiNet and Dodo, all of which charge AU$99.99, or exactly the same price Buddy charges for a plan that offers up to 250Mbps more speed. I know where I prefer to spend my money.
You can see more of the most popular NBN 1000 plans with our readers in the price comparison tool below.
The warning
Now, all this talk about super-fast internet speeds may sound wonderful, but there's a caveat: to get them, you need to make sure you're connecting to the NBN via a fiber-to-the-premises (FTTP) or hybrid fiber coaxial (HFC) connection. If you're not connecting through any of these at the moment, there's a good chance you'll be eligible for NBN Co's free fiber upgrade program.
If you're eligible, you can contact your NBN provider to confirm if they can activate the upgrade for you; Please also note that you will need to apply for at least an NBN 500 plan to enroll in the program. Buddy has confirmed to us that it is not currently equipped to manage updates for you, but its parent company, Aussie Broadband, can. In other words, if you don't already have FTTP or HFC and want to subscribe to this Buddy plan, you will first need to purchase a plan with Aussie Broadband (or another eligible provider) and complete the upgrade process, and so switch to Buddy once the new NBN equipment is installed.
takeaway
All of this goes to show that there really is good value to be found across all NBN speed tiers if you know where to look. And while an NBN 1000 plan may be more cost-effective than a 750Mbps alternative, my money is still on NBN 500 plans as the best option for most people.
You can see the current most popular NBN 500 plans with TechRadar readers in the price comparison tool below.
