Updated May 19, 2018 13:04:00 The average Australian household is paying more than $300 for their broadband internet service.
However, it seems the cable bundle is the main source of that expense.
A new survey from the Australian Consumer Action Network (ACAN) found that the average Australian cable and broadband provider’s price tag is $2,979 for a standard cable package and $3,091 for a satellite package.
This puts cable and fibre bundles as the most expensive, accounting for almost half of the total cost of a cable package.
It comes as no surprise, then, that Australia’s biggest providers such as Telstra and Optus have recently started to offer cheaper packages to their customers.
But the ACAN survey also found that cable providers in Australia have a very competitive edge when it comes to pricing.
There are four major cable providers – Telstra, Optus, iiNet and Bright House Networks – with the average price per month of a consumer’s monthly bill being about $400, with a whopping 20 per cent of households paying less than $200.
But in contrast, the average cost of the most popular type of broadband in Australia is more than twice that amount – around $3.5 million.
It’s the combined effect of these three bundles that sets cable prices apart from other types of broadband, which have a lower upfront cost.
The cheapest bundle can cost between $1,000 and $2-3,000, with most bundles reaching the $4,000 mark.
But these prices are not shared equally between different providers, meaning a high price for the cheapest cable is often shared by multiple companies.
A Telstra spokeswoman said: “As a result, we have chosen to offer a range of packages that are affordable and deliver high-quality broadband at a reasonable cost.”
Optus said its broadband package was the most affordable, but it would have to charge more than the average consumer to get the same quality of service.
It said: It’s important to note that our broadband services are delivered via a range, including a fixed-line bundle, which is not bundled into a satellite or cable bundle.
Optus offers its broadband service at a price of $80 per month for fixed line users.
Bright House Network said it was the cheapest bundle available to its customers.
BrightHouse Network is the only ISP in Australia that offers its customers a bundled fixed line service.
A customer who opts for a bundled Telstra/Optus/Bright House package can expect to pay about $2.50 per month.
That’s on top of the $1.25 per month they pay for a fixed line package, which BrightHouse offers on top.
However BrightHouse is not the only major provider offering a bundled broadband package in Australia.
Both Vocus and Sky Broadband offer their customers a package at $40 per month, which can be combined with a Telstra-Optus-Bright House bundle.
Vocus is the first to offer such a package and it can be found at a cost of $40.50 for fixed- and mobile-only customers, or $60 for a combined fixed-/mobile-only package.
A combination of Telstra + Optus + Bright House can cost around $1-2,500 per month depending on the length of the contract.
Optuses pricing model is not unique, but is unique to Australia.
In many countries, such as the US, Canada, Australia, New Zealand, and many other countries, customers pay a flat monthly fee for broadband, and are not required to pay additional fees for a bundle.
That means a Telstar customer who is offered a $400-plus price per year bundle from Optus is paying the same price as a Telstars customer who pays just $100.
However Optus’s pricing model differs from other providers.
Optens offers a cheaper monthly package for Telstra customers that is only $60, which comes with the ability to add up to five broadband connections.
This is different to Telstra’s $80-plus monthly bundle, and the $2-$3 price that Telstra offers its Telstar customers.
The ACAN study also found Australians pay for internet at a rate of 10.9 per cent per month when compared to the United States.
That is the highest rate of any country surveyed.
This means the average user in Australia pays more than 10 per cent more for internet than the United Kingdom, for example, and more than 20 per per cent over Canada.
This discrepancy is likely due to the fact that the United Nations has set a goal of universal access to broadband.
However the ACN found that only 1.9 percent of Australians use a broadband internet connection at home, compared to 1.4 percent of US households and 0.6 percent of Canadian households.
This may also be due to different pricing structures in Australia and New Zealand.
The study found that in Australia, there is a strong consumer-led campaign to fight for broadband and a more equitable