No-contract NBN: how month-to-month internet works

Why this happens

• NBN Co bills internet providers month to month, so there's no wholesale minimum term to pass on
• Some providers use a contract term to recover the cost of signing up a new customer
• Router or modem costs are sometimes built into a contract term

How to fix it — step by step

1. 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.

2. 2. Ask what the term is for

   If a plan has a 12 or 24-month term, ask what it covers. It's often a discount or bundled hardware. NBN Co doesn't require a term, so you can weigh the saving against the freedom to change.

3. 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.

4. 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.

5. 5. Choose month to month

   NBN Co's network is the same whichever provider or term you choose. Our standard plans are month to month and paid in advance, with no minimum term and no exit fee. The one exception is a Hyperfast plan that needs new NBN equipment at your place: it has a 12-month commitment (6 months on Fixed Wireless), and we show you that before you sign up.