Switching NBN providers to save money? Don't make this one mistake that could eat up all your savings

Mid adult Asian woman tired and stressed out dealing with financial problems at home
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If you feel your current NBN plan is costing you too much, or you’re simply not satisfied with the service you’re receiving, then you may be considering switching NBN providers. It’s a perfectly common thing to do, especially since the majority of the best NBN plans work on a no lock-in contract basis, giving you the freedom to change providers whenever you want – at least in theory.

That’s because while the actual process of switching providers can often be completed within just a few hours (depending on the type of connection you have), not all NBN providers employ the same cancellation policy. It’s this lack of continuity between policies that can catch plan switchers out, to their financial detriment.

Modem. Mo’ money.

A select few internet service providers (ISPs) place an extra charge on their supplied modems if you cancel within a certain period of signing up – Optus is a good example of this. While the telco doesn’t impose any cancellation fees and says you are free to cancel at any time, you will be liable to pay for the modem to the tune of AU$8.50 per month for every unused month within an initial 36 month period. That would be AU$204 if you switched to another provider after being with Optus for a year.

Fortunately, most providers don’t mimic this policy and instead either give you the option to return your modem to avoid an extra fee, or you keep the modem with nothing more to pay if it’s been purchased upfront when signing up for your new NBN service.

The ‘Big Three’ cancellation policies

So, what are the cancellation policies of some of Australia’s best-known ISPs? We’ll start with the ‘big three’ of Telstra, Optus and TPG before giving a general overview of what you can expect from some of our favourite providers.

Optus

Optus says you can cancel your service at any time by “notifying us” – the telco usually directs customers to use the My Optus app for all messaging enquiries, but you can also call customer service on 133 937.

Like Telstra, Optus also states that you won’t receive a refund for any charges paid in advance for the remainder of your payment cycle. Optus NBN service payments are paid in advance, so if you do want to cancel your service, we’d again recommend waiting until closer to the end of your monthly billing cycle.

But as mentioned earlier, Optus technically charges AU$8.50p/m for the Ultra WiFi Modem 2 it supplies with all NBN services. While you will receive a credit on your bill each month while you remain connected that covers this charge, if you cancel your service within 36 months you’ll be required to pay out the remainder of the device payments. For example, if you remain connected for 15 months and decide to cancel, you still have 21 modem payments to make, totalling AU$178.50.

TPG

TPG is the outlier of the big three providers as it does instil a 30-day cancellation notice period on no lock-in contract plans. The telco now offers a 6 month contract option in which you are bound to pay for the service. If you leave before this minimum contract period is up, you will be required to pay an early termination fee, but if you remain connected you will move onto a month-to-month contract which also requires a 30-day notice period to cancel an NBN service.

The route you go down will also dictate the cost of the supplied modem, if you elect to receive one (TPG does offer a BYO modem option). If you choose a 6-month contract, you will receive the modem for free, but if you choose a no lock-in contract option, you will need to pay a one-off fee of AU$114.95.

Telstra

Telstra states you can cancel your NBN service by calling 13 22 00, messaging via live chat or visiting a Telstra store. When you cancel your plan, it will be cancelled immediately and you won’t receive a refund for any money you’ve already paid.

If you’re connected with Telstra and you want to switch to a new NBN provider, then we’d recommend checking your billing date and scheduling the new service to start at least a few days prior, and then cancelling your Telstra service when that new service is up and running. One user on online forum Whirlpool says that when you sign up with a new provider, Telstra will automatically cancel your service. We would still recommend calling or messaging Telstra to confirm.

The Telstra Smart Modem included with the service is free if you remain connected for 24 months. If you leave before the initial 24 month period is up, you can return the modem to Telstra within three weeks of cancellation to avoid paying a fixed AU$200 fee.

Smaller providers

So how do some of our favourite smaller providers that we often recommend here at TechRadar fare? Here’s a quick rundown of the cancellation policies of our top five:

Superloop: cancel at any time by giving 30 days notice. Free Amazon eero 6+ modem for FTTP/FTTC/HFC connections, if you remain connected for 24 months. If you cancel within the 24 month period, you will be charged AU$7 per month for every unused month.

Spintel: cancel at any time, but note that payments are paid in advance and you will be billed until the end of your current billing cycle.

Exetel: cancel at any time by providing 30 days notice. No additional charges for a modem, since these are paid for upfront at the start of an NBN service.

Buddy Telco: cancel at any time within the Buddy app with immediate effect. If you cancel mid-cycle you will only be charged for the days you are connected.

Flip: cancel at any time with no notice period required. Do note that any upfront payments made are non-refundable, so we would recommend cancelling towards the end of your current billing cycle.

Choosing a good plan

Of course, if you’re switching, the first thing you need to do is find a better plan. Here’s a quick overview of our top plan recommendations for each tier – and for the full details on any of these, hit up our best NBN plans hub:

Flip | AU$39p/m
NBN 25

Flip | AU$39p/m (first 6 months, then AU$57.90p/m)

Maximum typical evening speeds, an astonishingly low introductory price and an ongoing price that is AU$13 less than the current average.

Buddy | AU$69p/m
NBN 50

Buddy | AU$69p/m (first 6 months, then AU$75p/m)

A fuss-free sign-up experience, an attractive cancellation policy and use of the widely-praised Aussie Broadband network.

Spintel | AU$65p/m
NBN 100

Spintel | AU$65p/m (first 6 months, then AU$81.95p/m)

Exceptionally low introductory cost, maximum typical evening speeds, positive customer reviews and an affordable ongoing monthly cost.

Superloop | AU$85p/m
NBN 250

Superloop | AU$85p/m (first 6 months, then AU$99p/m)

Attractive monthly cost and among the cheapest to quote maximum typical evening speeds. Gives the option to temporarily increase plan speed to the next tier up – NBN 1000.

Buddy | AU$99p/m
NBN 1000

Buddy | AU$99p/m

The outright cheapest provider and the second-fastest advertised typical evening speeds at 875Mbps.

Max Langridge
Staff Writer

Max is a senior staff writer for TechRadar who covers home entertainment and audio first, NBN second and virtually anything else that falls under the consumer electronics umbrella third. He's also a bit of an ecommerce fiend, particularly when it comes to finding the latest coupon codes for a variety of publication. He has written for TechRadar's sister publication What Hi-Fi? as well as Pocket-lint, and he's also a regular contributor to Australian Hi-Fi and Audio Esoterica. Max also dabbled in the men's lifestyle publication space, but is now firmly rooted in his first passion of technology.

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