The short version

Key points

  • The ACCC wants NBN Co to consider replacing the 25Mbps entry-level plan with a service offering at least 50Mbps download.
  • NBN Co has argued that the entry-level service should remain below 50Mbps, retaining the existing 25Mbps download and 5Mbps upload offer.
  • The 50Mbps tier is reported to be NBN’s most popular and is expected to remain so through FY29.
  • The ACCC has cautioned against relying on services above 2Gbps to recover costs, as most households may not spend significantly more for the marginal benefit.
  • Upload performance is becoming more important for activities such as video publishing and cloud synchronisation.

The proposal to remove 25Mbps plans

The Australian Competition and Consumer Commission, or ACCC, has asked NBN Co to develop a medium-term plan for upgrading its entry-level offer from 25Mbps download to at least 50Mbps download. The request was included in an ACCC submission dated 17 February 2025.

The proposal would effectively remove the slowest NBN speed tier. The existing entry-level service provides 25Mbps download and 5Mbps upload. The ACCC’s position is that consumers could benefit from a faster entry-level service, particularly if it came with stronger price controls.

Why the 50Mbps tier is central to the debate

According to the information discussed in the video, 50Mbps is currently NBN’s most popular speed tier, and NBN Co expects it to remain the most popular through FY29. This raises questions about the usefulness of retaining a 25Mbps plan below it.

The retail price gap can also be small. Some retail service providers do not offer a 25Mbps service, while others offer it at close to the price of a 50Mbps plan. Where the prices are similar, customers may have little reason to choose the slower option.

However, NBN Co has defended keeping an entry-level service below 50Mbps. The company’s position, as reported in the discussion, is that the existing 25Mbps download and 5Mbps upload plan should remain available.

Affordability remains a key issue

The ACCC is not only calling for faster entry-level speeds. It has also urged NBN Co to give greater consideration to increasing the speed and reducing the price of the entry-level offer. The aim is to provide faster internet while protecting households that cannot or will not pay for premium services.

The ACCC has separately cautioned NBN Co against pursuing very high-speed services as the main model for recovering costs. Although faster connections may be attractive, the submission argues that most Australian households are unlikely to substantially increase their internet spending for services above 2Gbps, given the marginal benefit for many users.

Faster services and the importance of upload speeds

NBN Co is investing in higher speeds across fibre-to-the-premises and HFC networks. The video refers to planned 2Gbps services and reports that some HFC users have been testing speeds of up to approximately 2.5Gbps.

The discussion also highlights that download speed is not the only consideration. Streaming services such as Netflix and YouTube use compressed video, meaning many households can already watch high-quality content without requiring extremely fast downloads. Upload speed can be more important for people who publish video, back up files or synchronise data with cloud services.

The wholesale pricing roadmap discussed in the video includes different figures for the relevant speed tiers and future financial years. Pat describes the wholesale price for the 50Mbps service as being around $35 in FY27, while also referring to a $58 figure in the 50 to 100Mbps context. The exact retail price remains dependent on the service provider and its other costs, including connectivity capacity.

TechManPat’s conclusion

I think the 25Mbps plan should be removed if its price is not meaningfully lower than a 50Mbps service. A 50Mbps minimum would better reflect the most popular tier, but it should be paired with sensible pricing so the benefit goes to households rather than only to retail service providers. I also think upload speeds deserve more attention as faster premium download plans become available.
Source note

This knowledge-centre summary is based on the linked TechManPat video and reflects the information available when it was published. Check current pricing, availability and policies before acting.