Vodafone just went under the $60 barrier for unlimited NBN

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Telco challenger Vodafone has cut the price of its cheapest unlimited NBN package to just $58 a month for a 25Mbps plan in a move that could spark a price war between the major providers.

The deal is $11 cheaper that the $69 offer it rolled out last December – with 4G mobile backup if the NBN fails – and with the majority of NBN subscribers choosing the lowest NBN speed of 25Mbps gives Vodafone, which only began offering NBN services less than 12 months ago, the chance to poach market share from Optus and Telstra.

The Vodafone deal also features 50Mbps plans for $69 monthly – $10 cheaper – and at $59 for existing mobile customers, with the 100Mbps service priced at $89 ($79 for existing customers). On top of that there are no connection fees, or lock-in contracts, but the modem will cost you $5 a month unless you stay with Vodafone for three years and then it’s free.

Vodafone says existing customers will be moved onto the cheaper plans, saving them $10 a month.

The telco’s Chief Commercial Officer, Ben McIntosh, says Vodafone is keen to bring the competition in the mobile market to the NBN, which could mean a price war.

With the roll-out now about two years from completion and all households required to switch over to the NBN when it’s available, Vodafone is hoping to find the bargain hunters in a market that can be notoriously indifferent to changing providers.

“Over six million Australians say they are unlikely to switch even though they know they can get a better deal. People are losing out on up to $480 of savings every year,” he said.

“For the 30% of Australians that are currently paying too much, now is the time to act.”

McIntosh said around a third of Australians were dissatisfied with their home internet speed, and while Vodafone will still offer the bottom speed, known as NBN12, the won’t be promoting it.

Earlier this year, the government-owned NBN dropped the wholesale price of higher speed plans in a bid to lure customers to higher tiers. While 80% of users chose 25mbps, the NBN cut the monthly wholesale price of a 50mbps plan cut by 27%, to $45, while pricing for a 100mbps plan will fall by 10% to $65.

New Vodafone NBN plans are available from today.

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