Notes

NBN could be Beaten by 5G and Data that is Cheap

The NBN could be challenged by data rates that are lower and the rollout of 5G technology.



Mobile prices fell 17 percent in 2019-20 due to a decline in the price of entry level plans and significant growth in data allowances, according to the ACCC's annual Communications Market Report.



The consumer watchdog reported a modest 2 percent drop in NBN broadband prices and an increase in the entry-level plan costs tempering the drop.



Rod Sims, chair, stated that consumers have received better value for their mobile plans due to the increased allowances for data.



"Whether this trend continues into 2021 will be determined by how strong mobile operators compete to win new customers."



The ACCC found that 5G has still a tiny footprint and that operators are investing in rollout plans to increase speeds, reduce latency, and more competition to fixed-line broadband.



"The impact of the mobile market is likely to be contingent on the willingness of consumers and businesses to upgrade to more expensive devices," Mr Simms said.



WhistleOut compares 5G speeds for home internet from 50Mbps to 300Mbps.



Optus offers a $75-per-month plan with a 100Mbps limit, which WhistleOut claims is cheaper than NBN 100 Mbps plans.



You can also select an $90 plan that includes unlimited data and no limit on speed.



Telstra charges $85 per month for a 500GB plan. currently on an invitation-only basis.



Alex Choros, WhistleOut's managing editor, said that 5G is more interesting for NBN alternatives than for mobile devices.



"Given the speeds you can get for prices similar to NBN 50 and NBN 100 plans, it could be an attractive option for many Australians, especially those struggling with slow speeds on Fibre to the Node connections or Fixed Wireless.



"As the 5G rollout progresses it's inevitable that NBN Co and NBN providers will need to factor this into how plans are priced."



NBN Co announced in September that it had completed its initial construction. The ACCC said that this was a sign of the importance of commercial access agreements to promote competition in retail markets.



"There are promising indications of a further benefit for consumers as RSPs (retail service providers) accept better offers enhanced by commercial negotiations that were conducted during our public inquiries," Mr Sims said.



"The importance of maximising use of the NBN by ensuring access to affordable prices and a strong retail competition can't be overstated if we are to realise the full social and economic benefits of this significant investment.
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