NBN plan costs revealed

An entry level 12Mbps broadband plan with a 50GB download limit on the NBN will cost between $53 and $58 a month, according to NBN Co.

Documents outlining the business case for the National Broadband Network (NBN) show the project will take a decade to complete and prices to the consumer will be similar to current ADSL2+ plans on the market.

However, fibre plans will offer more consistent speeds, which do not deteriorate over distance as ADSL does, while upload speeds will be considerably faster.

NBN Co will set a uniform, national price of $24 to wholesalers for the basic fibre plans, ensuring consumers will get the same price for a broadband plan whether they live in the bush or the city.

Mike Quigley, NBN CEO, said: "The NBN will deliver a significant, once-in-a-generation restructuring of the industry while resolving the current infrastructure and investment bottlenecks that have seen Australia fall behind its international peers.

"The NBN will replace the country’s copper telephone network, which is reaching the limits of its capacity to provide the level and speed of services that Australians will demand."

The business plan forecasts a 7% internal rate of return for the NBN, based on the assumption of a 70% take up.

The entire roll-out, which involves laying 57,000km of transit fibre, will take until 2021, so homes and businesses looking forward to 1GBps speeds will have to be patient.

Some areas of Tasmania already have a working fibre network, as the NBN has been trialling the service in the state before a mainland roll-out.