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How choosing the wrong NBN plan could cost you an extra $700 a year

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With the NBN rolling out across Australia, many households are either in the process of looking for an NBN plan or will be in the near future.

While it's tempting to take the easy route and default to a plan with your existing internet provider, you could be paying hundreds of dollars more every year.

NBN is likely to be more expensive than ADSL internet, however shopping around could see these higher monthly costs offset.

Mozo research for the Mozo Experts Choice NBN Awards found there are huge price differences between plans. For example, costs on a 50Mbps contract plan ranged from around $50 to $106 a month. Over the space of a year, this is a price difference of $736.

nbn plans

The analysis found the monthly price difference between contact and no-contract plans was negligible, however some contact plans have massive cancellation fees.

In fact, one in five contract plans require you to pay 100% of your contract if you were to cancel half way through so it's crucial to do your research beforehand to ensure this is the right plan for your household. Non-contract plans tend to have higher installation fees, which typically range from $0 to $265.

There are huge savings on offer for those prepared to shop around. Mozo Experts Choice Awards winners were found to be up to 36% cheaper than the average NBN plan.

Some of the providers providers offering the best-value plans in the country include Exetel, Belong, Spintel, ActiveNet, AusBBS and TPG.

Consider what speed is best for your household size and data requirements to avoid paying extra unnecessary costs. Mozo's analysis shows price differences between a 25 and 50 Mbps speed plan is relatively small ($5-$8 per month extra) compared to a 50 and 100 Mbps speed plan ($15-$20 per month extra).

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