- Is Telstra too expensive?
- How can some providers provide cheaper Internet?
- Learn what to consider when choosing a new plan
As you search for a broadband connection, you'll likely encounter a range of prices, from very cheap plans with unlimited data to expensive plans offering numerous add-on services, some of which may not be necessary for you.
However, what causes such a significant price gap between the low and high ends of the market? What sets them apart in terms of value?
While everyone seeks the best deal, seeing a substantial difference between providers can raise suspicions about hidden catches.
Telstra, being one of Australia's largest telcos, is often a popular choice, but is it the best option? In this assessment, we'll evaluate factors like value for money, support options, and additional perks offered to Telstra customers.
What could Telstra offer to justify such a gap in price?
Every telecommunications company has a set of standard expenses called differentiators.
These can include:
- Paying for access to the infrastructure (like cables and networks) that deliver your Internet connection.
- Paying the staff who handle customer service, technical support, and credit management.
- Paying the engineering and back office staff.
- Advertising costs.
To reduce these expenses, an ISP can:
- Own its infrastructure instead of renting it from another company.
- Outsource customer service and technical support to countries like India and the Philippines.
- Only accept automatic direct debit payments, billing in advance instead of after the fact, to avoid chasing unpaid bills.
- Hire contractors for engineering work.
- Keep advertising to a minimum.
In contrast to other providers that focus on cost-effective advertising, Telstra invests in comprehensive national campaigns across various media and large sponsorship agreements.
Telstra is known for its carrier-grade status, with extensive mobile networks, satellite links, and robust infrastructure. While this contributes to its higher prices, it also allows them to have more control over service delivery.
Additionally, Telstra's strong brand presence and retail stores set it apart from competitors like TPG, which lacks its own retail outlets.
Considering Telstra's higher prices compared to other providers, it's essential to recognise that Telstra serves the entire country, while others may focus on densely populated areas.
Its pricing strategy might aim to balance the costs of servicing different customer segments. While Telstra may not explicitly attribute its higher prices to this, its robust brand justifies these prices in the market.
What are the cheaper options?
Telstra has a lot to offer for their customers, but there are cheaper options.
Customers can choose from a range of Dodo NBN plans offering speeds of 15, 25, 50, and 100 Mbps. Customers in New South Wales and Victoria can enjoy discounts by bundling services. While Dodo is known for other services, it's also a strong NBN provider.
Residents in New South Wales and Victoria can save $10 monthly by combining their gas and electricity services with Dodo. Queensland residents can also save $5 monthly by bundling electricity services.
Known for its budget-friendly Internet and NBN services, TPG has built a reputation for offering great value. While TPG may not offer as many perks as some other providers, its competitive pricing makes it a solid choice for those seeking affordability above all else.
TPG stands out for its cost-effective plans that make it an attractive option for budget-conscious customers. On top of the great prices, TPG offers a range of support options, ensuring that customers can get assistance when needed.
Lastly, even on its slower plans, TPG delivers decent typical evening speeds, ensuring a reliable Internet experience.
Things to consider in choosing an NBN plan
When deciding on your NBN connection, several factors should influence your decision. Here are some key considerations to help you choose the right plan:
Assess your Internet habits. You'll need a high-speed, high-data NBN plan if you stream movies or download large files frequently. Telstra's NBN 100 plans, for example, offer speeds of up to 100Mbps and unlimited data, but these may come at a higher cost.
For lighter usage like email and web browsing, a cheaper, slower plan may suffice.
NBN connection type
Your NBN connection type matters. For instance, if you have an FTTN connection, you might be limited to NBN 25 or 50 plans. With FTTP, you can choose any plan, including those with higher speeds.
Consider your budget. While Telstra's plans tend to be pricier, other providers may offer more affordable options. Some providers also allow bundling with other services, like home phone and mobile, or energy, which can lead to additional savings.
Look at other features offered by providers, such as free modems, contract flexibility, or data-free periods. These extras can be valuable depending on your needs.
Remember, there are many other factors to consider when choosing an NBN plan, but these guidelines can help narrow down your options. Once you've weighed these factors, you'll be better equipped to select the ideal NBN plan for your needs. For more information and to compare plans, visit our website. If you nee
It’s worth doing your homework before signing up for a plan, but the main differentiators between providers being cheaper than Telstra include Telstra being carrier-grade, you’re paying as much for the brand as you are for service. As always, give us a call on 1300 061 200 and we can help narrow down the wide range of options to a few providers who suit your needs!