Australia Post has entered the home internet market to offer NBN services for purchase in store and online.

Australia Post Broadband, announced on Tuesday, has eight different plans, starts at $54 a month for unlimited data, and does not have lock-in contracts.

“Customers want choice when it comes to selecting their home internet service, so we are providing a range of plans to suit people’s usage habits,” said Catriona Noble, Australia Post’s executive general manager, retail.

“Our priority was also to make it easy for customers to switch to Australia Post Broadband, with existing NBN customers able to typically make the switch within one business day.”

Move makes sense

Australia Post’s latest venture is a logical move, especially considering it is already offering Optus-powered mobile plans, RMIT associate professor Mark Gregory told TND.

The internet service plan’s prices are competitive, and will attract pre-existing customers looking to consolidate their services, Dr Gregory said.

“[Australia Post is] looking for people that visit the post office regularly and want to utilise the services of an organisation that Australians trust,” Dr Gregory said.

Big telcos losing customers

Australia Post joins a growing number of retailers broadening their offerings, particularly in the mobile space, with Woolworths, Aldi and Coles selling their own mobile plans – supported by well-established telcos like Telstra and Optus.

Dr Gregory said there’s no downsides for customers as the telco and internet markets become more competitive.

“Companies becoming resellers is a pretty well-worn path now,” he said.

An Australian Competition and Consumer Commission report found smaller retail service providers increased their share in the NBN wholesale market by 0.8 percentage points to 12.6 per cent in the June quarter.

The gains are part of long-term trend, with small providers seeing a year-on-year market share increase of 4.4 per cent as customers leave the nation’s top four telcos (Telstra, TPG, Optus and Vocus) for other plans and prices.

Australians interested in signing up to Australia Post Broadband can use their pre-existing NBN-approved modem, or buy an Australia Post modem for $109.

Customers who switch to Australia Post Broadband by January 9 will receive an introductory 25 per cent off per month for the first six months of service.