Telstra makes 50/20Mbps NBN speed tier its new standard

Telstra shifts customers off low-speed NBN plans

Telstra's 'Smart Modem' in the home of someone with terrible taste in lamps.

Telstra's 'Smart Modem' in the home of someone with terrible taste in lamps.

Telstra has announced that from today, the NBN50 speed tier will be standard for new NBN bundles.

Telstra is progressively moving customers with 25/5 megabit per second NBN services to the faster 50/20Mbps speed tier.

The move, which will not incur any costs for end users, will affect some 850,000 households and SMBs.

Telstra CEO Andy Penn last month revealed that the telco was in the process of migrating users to the faster speeds.

Rival NBN retail service provider (RSP) TPG announced in December that it would stop selling services based on the 25/5Mbps speed tier and instead cut the price of its 50/20Mbps offerings to the level of the slower services.

NBN last year revealed it would undertake a major pricing revamp in order to encourage take-up of higher speed National Broadband Network services.

In the past, 25/5Mbps has been the most popular service on the new network. NBN moved to discount its 50/5Mbps product to the same price as its 25/5Mbps product.

At the same time, NBN is preparing to roll out new product contracts that bundle access fees (AVC – based on the theoretical maximum speed of a service) with some capacity (CVC).

The wholesaler also implemented a temporary CVC credit, which has seen RSPs boost their purchase of capacity on the network.

Telstra is one of a number of major telcos that has committed to compensating customers who were sold fibre to the node (FTTN) and fibre to the basement (FTTB) NBN services with unachievable speeds.

The Australian Competition and Consumer Commission last year announced that some 42,000 of the company’s NBN customers would be compensated.

Telstra also said today that its 4G-capable Telstra Smart Modem would be provided to new customers signing up for home Internet bundles, customers moving home, and most customers migrating to the NBN.

The modem offers a 4G cellular connection while customers wait for an NBN connection to be activated or as a backup in the case of network outages.

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Tags broadbandTelstranational broadband networkTelecommunications4gNational Broadband Network (NBN)

More about Australian Competition and Consumer CommissionAVCCVCSmart

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