Australian households could save more than $400 per year by switching from Telstra’s standard NBN plan to budget provider Exetel, according to new analysis following recent government speed testing and Telstra’s latest price increases.
The price differential has widened significantly after Telstra announced that most phone, data and internet plans would increase by $3 to $5 monthly.
The hikes affect the majority of Telstra’s customer base, though the telco has kept its cheapest mobile and internet contracts unchanged, along with pre-paid phone plans and 5G home internet services.
For consumers on Telstra’s standard NBN offering, the annual cost difference now reaches $408 compared to Exetel’s equivalent service – enough to cover several months of internet access with the budget provider.
The financial gap becomes more striking when considered alongside recent government testing results, which shows Exetel delivering faster download speeds than Telstra on comparable NBN plans.
The Australian Competition and Consumer Commission’s broadband performance monitoring program has consistently tracked speed delivery across major providers, with the latest data challenging assumptions about premium pricing correlating with superior performance.
However, customers considering the switch face one notable trade-off: unlike Telstra, Exetel requires customers to purchase their own modem, adding an upfront cost that could range from $100 to $300 depending on the device chosen.
Industry analysts suggest the results reflect broader market dynamics, with smaller providers often able to offer competitive technical performance while maintaining lower operational costs.
Exetel, which operates as a wholesale customer of NBN Co like other retail service providers including Superloop , have built their business models around lean operations and competitive pricing.
For consumers weighing their options, the choice now involves balancing immediate cost savings and superior speed performance against factors such as customer service accessibility, network reliability during outages, and the convenience of bundled services that major telcos typically offer.
The competitive pressure from budget providers achieving both better value and performance metrics may signal broader shifts in Australia’s telecommunications landscape, where brand recognition and traditional market leadership face challenges from nimble operators focused on core service delivery.
