AusBBS PAYG NBN Isn't Spectacular Value

AusBBS (Australian Broadband Services) has begun trials for a pay-as-you-go NBN offering. We like the idea of a flexible service, but the actual pricing leaves a little to be desired.

The big issue with AusBBS is that it isn't, strictly speaking, a true pay-as-you-go offering. You pay a minimum sum each month which determines your line speed and gets you 1GB of downloads and uploads, and then pay for the data you use above that figure. You pay $0.85 per gigabyte for the next 10GB, then $0.40 per gigabyte for everything after that. You can pay $39.95 a month for a 12/1 plan, $46.95 for a 25/5 connection or $59.95 for 100/40.

If the NBN hasn't rolled out where you are, you can sign up for an ADSL2+ plan and transition to the NBN when it hits your area. The signup cost is $165 for a no-contract deal, $66 for a 12-month contract or zero for a 24-month contract.

A quick check of our NBN Planhacker shows that there are in fact cheaper options out there. Exetel will sell you a 12/1 plan with 50GB of data for $35 a month, and will shape you when you exceed that limit. Unless you genuinely use a tiny amount of data most of the time but occasionally range much higher, this will almost certainly work out cheaper than paying the AusBBS figures for the equivalent plan.

Compared to plans which include peak and off-peak components, the AusBBS plans are relatively transparent, and it's good to see some variation in the pricing models. But it's hard to see this being a great buy for a lot of people. It's true that many people purchase cap plans and then rarely hit their caps, but I suspect a lot of Lifehacker readers don't fall into that category. What are your thoughts?

AusBBS


Comments

    Thanks for covering this. First a clarification - NBN optical fibre plans are on sale from today.
    The idea of this deal is to create as much flexibility as possible for the customer within the confines of our supply arrangements. Australian suppliers are hooked on caps so this will evolve over time. Our challenge will be to get the news out that most users are not getting value because they are using an average of ~20% of their cap quota. PAYG is for average consumers on 35GB per month or less and with month to month variation. As our volume grows we will be able to lower the minimum and bring in heavier users.
    In terms of value, yes at 12mbps there are a couple of bottom end service provider alternatives with cheaper caps. At that level it is a service quality decision. At higher speeds the flexibility delivers real savings.
    Keep in mind ADSL2+ PAYG at $29.95 minimum and the same per GB rates. For heavy users we are also offering a range of cap plans.
    This trial is to find out if users want flexibility so keen to hear the feedback.

      Thanks for the availability clarification, have updated.

    These plans would be good if the first 10GB was free, then it will be a serious competitor.

    Thanks for the feedback. 10GB included changes the approach significantly but is not out of the question. We'll add add to the wishlist. This pricing will evolve so keep an eye out. Any more suggestions?

    Angus thanks for your perspective on our original pricing. Please take a look at out revised plans announced today. We've taken on feedback here and from other sources to open up flexible PAYG pricing to a broader range of users. The Jackola influence is also in there with 10GB included - http://ausbbs.com.au/cms/staticpage/NBN-Pay-as-you-go-fixed-line-pricing

Join the discussion!

Trending Stories Right Now