NBN with no lock-in contract — what it means and why it matters.
Most NBN plans are sold with 12 or 24-month contracts. But NBN Co's own wholesale agreements with internet providers have no minimum term at all — which raises a fair question: whose benefit is your lock-in actually serving?
Tired of fighting your ISP? HIT Pacific — transparent pricing, no lock-in, real local support.
See our plansWhy this happens
- NBN Co charges internet providers month-to-month at wholesale — there is no minimum term to pass through to customers
- ISPs use contracts to protect their customer acquisition investment and reduce churn
- Once an ISP has recovered their cost to acquire you as a customer (typically 2–3 months of margin), there is no ongoing cost reason to hold you in a contract
- Contracts give ISPs room to raise prices mid-term with limited customer remedy
How to fix it — step by step
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1. Understand what no lock-in actually means
A no-lock-in plan is month-to-month. You can leave with standard notice (usually 30 days) and no exit fee. If your ISP's service deteriorates, a better plan becomes available, or you move house, you're free to act. There is no penalty.
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2. Ask why your ISP needs a 12 or 24-month term
NBN Co does not require it. There is no wholesale minimum term being passed through. The contract term is a business decision by your ISP to protect their revenue. A legitimate ISP with good service shouldn't need to lock you in to keep you.
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3. Check what you're actually locked into
Some contracts bundle a hardware cost (router or modem) into the service term. You may be locked into the hardware repayment even if you exit the service. Read your Critical Information Summary carefully — it must disclose all exit fees and what triggers them.
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4. Calculate whether the contract deal is worth the flexibility cost
Contract plans sometimes offer a lower monthly price. Add up the total cost over 24 months for both the contract and month-to-month options, including the potential exit fee if you leave 12 months in. The 'discount' is often priced in — and you give up flexibility to get it.
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5. Switch to month-to-month
NBN Co's network is the same regardless of which provider you use or what term you're on. There is no technical benefit to a contract — only a financial one for the ISP. HIT Pacific operates on month-to-month terms only. No exit fees, no minimum term, no lock-in.
Still having trouble?
If none of these steps resolve the problem, it may be an issue with your current provider. HIT Pacific offers transparent pricing, faster fault response, and local support.
See our plans