Telstra vs Optus NBN: Australia's biggest telcos compared

When it comes to choosing the best NBN plan for you, chances are the first two internet service providers (ISPs) you're going to look at will be Telstra and Optus. These two are the industry heavyweights, although they no longer enjoy the same level of dominance seen just a few years ago.

Smaller NBN providers have been surging in popularity, offering top-performing services for far less money. That being said, there is still value to be found in a Telstra or Optus NBN plan, and if you do decide you want to sign-up with a tried and tested provider, this guide should help you decide which comes out on top in the Telstra versus Optus broadband debate.

There’s no hiding that these two major telcos don’t have the cheapest NBN options out there (check out our cheap NBN plans guide if that's more what you're looking for). But what they do both offer is a well-performing service alongside lots of optional add-on extras that can help improve the plan’s value, particularly if you’re after entertainment options.

If that’s something you’re looking for in a provider, we’ll be laying out all the differences (and similarities) between the two choices here.

Plan range

• Both providers with plans from NBN 25 – NBN 1000
• Typical evening speed figure claims differ between the two

Both Optus and Telstra have NBN plans covering NBN 25 through to the fastest NBN 1000. There was a time when Optus' plans started at NBN 50, but that is seemingly no longer the case. Optus also previously offered a specific plan for gamers, but this was officially shut down in August 2024.

Now, Optus has two different options when choosing an NBN plan, known as Everyday and Everyday Plus. In essence, they are the exact same and will deliver the exact same speeds via the same supplied equipment (you can't get an NBN 25 Everyday Plus plan).

The main difference is that Everyday Plus includes a Standard Netflix subscription valued at AU$18.99p/m, an Ultra WiFi Booster (essentially just a WiFi extender) and McAfee WiFi Secure for added security when using the internet. An Optus Everyday Plus NBN plan does, as a result, cost more each month than a regular Everyday plan.

Telstra, meanwhile, has some perks of its own available with all NBN plans. At the time of writing, these include a four month Spotify Premium subscription and a two month Binge subscription. There is also three months of McAfee Telstra Device Security included, which then reverts to a paid subscription. However, it should be noted the free trials to Spotify and Binge are only available to new customers of either service.

You should also note that in order to sign-up for either an NBN 250 or NBN 1000 plan with Optus or Telstra, you will need either a fibre-to-the-premise (FTTP) or a hybrid fibre coaxial (HFC) connection. You can read more about each NBN connection type here.

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Price and data allowance

• Cheapest Telstra plan is AU$89p/m
• Cheapest Optus plan is AU$75p/m
• Optus generally offers better value for money

Cost is the critical factor when considering any NBN plan, so let's break down how much you can expect to pay with these major Aussie telcos.

The cheapest plan with either telco is a 25Mbps NBN 25 plan. Telstra charges AU$89 a month while Optus charges AU$75 a month – a huge difference of AU$14.

It's a similar story with the other NBN plans offered by the two providers, with Telstra being the more expensive option each time. In fact, based on all the ISPs we monitor, Telstra is the most expensive provider in the country.

You can view a full comparison of the NBN plans offered by Optus and Telstra in the table below. Please note that the prices listed are the regular monthly costs, following any introductory promotional pricing. And in the case of Optus, we're using the Everyday plan pricing, rather than Everyday Plus pricing.

Optus and Telstra's plan pricing has increased within the previous 12 months – especially the slower NBN 25 and NBN 50 plans – following a decision by NBN Co to increase the wholesale cost of its services. The decision was made to encourage Australians to upgrade to the fastest NBN plans, which subsequently have seen their average cost decrease by up to as much as AU$20p/m since September 2023.

As an example, the cost of a Telstra NBN 50 plan was AU$80p/m towards the end of 2022. At the time of publishing in October 2024, that same plan is now AU$89p/m. This is the most expensive plan of the telcos we monitor, AU$19 more each month than the current average and AU$31.10 more expensive each month than the cheapest provider, Flip.

Optus' AU$75p/m is also higher than the national average – which is AU$70p/m at the time of publishing – putting it in the upper echelons of providers at this speed tier.

It's a similar story as you move up the speed tiers, with Telstra always being the most expensive and Optus trailing not too far behind. Out of the two providers, then, Optus is the clear winner when it comes to value. In the grand scheme, however, neither provider could be considered 'good value' when there are numerous smaller ISPs offering similar plan speeds for much less.

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Performance and typical evening speeds

• Similar typical evening speed claims across all speed tiers
• Both good options for streaming Netflix
• Optus may potentially experience more frequent outages

Both Telstra and Optus promise to deliver the same typical evening speed of 25Mbps on their NBN 25 plans, 50Mbps on their NBN 50 plans, and 100Mbps on their NBN 100 plans, which is to say that the telcos are promising that customers should expect to get maximum plan speeds most of the time.

As for faster NBN plans, Telstra advertises maximum speeds of 250Mbps on its NBN 250 plan, whereas Optus quotes 245Mbps. Moving up to the NBN 1000 tier, with a theoretical maximum speed of 1,000Mbps, Optus comes out on top with a 780Mbps speed claim compared to Telstra's 700Mbps.

We can dig a little deeper to understand what sort of speed you can actually expect, however, thanks to the Australian Competition & Consumer Commission. The consumer watchdog publishes a report each quarter looking into the broadband performance of some of Australia's biggest telcos, and its most recent update in September 2024 found that both Optus and Telstra either met or exceeded their promised average speeds on NBN 25, NBN 50 and NBN 100 plans.

Optus was found to deliver 103% of plan speeds across all hours and 101.6% during the busiest hours. Telstra meanwhile recoded 103.2% of plan speeds across all hours and 102.3% during the busiest. These figures technically mean Telstra overdelivers on speed more than Optus, but in reality there is very little to separate them.

Latency is another metric that is important, especially for gamers, and in the latest report neither Optus or Telstra performed particularly well in comparison to some of the other telcos monitored. Optus returned a figure of 10.9ms across all hours while Telstra was slightly slower with a figure of 11.6ms. The best-performing provider was Exetel, with a speed figure of 7.9ms.

When it comes to outages, it’s important to note that there’s a fair bit of fluctuation and outage statistics do change over time and so aren't entirely indicative of the experience you'll have with either telco.

The ACCC’s September 2024 report found that during the month-long monitoring period, 27% of households connected to Optus experienced no outages, compared to the 30% connected to Telstra. At the other end of the scale, 27% of Optus households experienced an outage at least one a day, whereas just 24% of Telstra customers had the same experience.

And when you look into the severity of those outages, Telstra continues to look the better of the two. Just 8% of Telstra’s outages in the most recent testing period lasted 10 minutes or more, while it was found that 11% of outages experienced by Optus customers lasted 10 minutes or more.

The ACCC isn’t the only organisation tracking the quality of Australia’s NBN. Netflix also monitors the performance of ISPs on an ongoing basis, tracking the average speed at which video content is streamed during 'prime time' viewing hours. In this measurement, Telstra and Optus are currently neck-and-neck, and share the top of the leaderboard with TPG, iiNet and Aussie Broadband.

Optus vs Telstra: Fastest NBN plans

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Additional fees

• You’ll be required to pay out your modem if you leave Optus within 36 months
• Return modem to Telstra or pay a AU$200 fee
• Both no lock-in contract with no cancellation fee

It’s time to talk about everyone’s favourite part... the fine print.

The good news is that Telstra and Optus no longer charge new customers a AU$99 connection fee, although a fee may still apply if you’re getting a first time NBN connection in a new development.

Both telcos will provide you with a modem-router that comes with 4G backup, but you only get it for free with Telstra (sort of). Optus will also give you its Ultra WiFi Modem 2 for free, but only if you remain connected for 36 months.

You’ll get the Telstra Smart Modem for free when you sign-up for a plan and remain connected for 24 months. If you leave within 24 months, you can return the modem to Telstra or pay a AU$200 non-return fee. Telstra used to apply a monthly charge to its modem, so we're glad to see this is no longer the case.

It’s a slightly different story with Optus, as you’ll need to stay connected to Optus NBN for 36 months if you want the Optus Ultra Wi-Fi Modem 2 for free. The cost of the hardware has risen a fair amount in the last few years, too. Optus used to charge around AU$7p/m a couple of years ago but that cost has since risen to AU$8.50p/m. If you leave within 36 months, you'll be required to pay AU$8.50 for each unused month. This is non-negotiable and there is no option to return the modem to Optus to avoid paying it.

Aside from this, there’s no additional cancellation fee with either Optus or Telstra, just the remaining cost of your hardware if you leave before the allotted time period.

Both ISPs will determine if a technician needs to be sent out to complete your NBN installation, the costs of which can vary depending on the situation. In many cases this can be free of charge, but on the flip side there are certain set costs that are sometimes unavoidable. If you’re activating an NBN service for the first time in a new development, for example, there’s a fee of AU$300 no matter what ISP you choose.

Optional extras and freebies

• Telstra offers Fetch and Foxtel entertainment options
• Free trials to streaming services with Telstra
• Optus Sport add-on and SubHub specials with Optus

Going with one of the major Aussie ISPs may not be the cheapest option, but they do come with some free perks and more optional extras than most competitors – let’s break down what each provider brings to the table.

As mentioned above, both Telstra and Optus have their own telco-branded modem-routers that are provided 'free' to NBN subscribers. Each is enabled with 4G backup, so they will automatically connect to the internet through the telco’s mobile network if there’s an NBN outage. (Coverage depending, of course.)

If you find the Wi-Fi coverage in your home isn't up to scratch, both telcos offer a Wi-Fi booster. Telstra's comes at the cost of AU$12p/m for 24 months (or AU$288 outright) although it does add that you can receive up to three more at no extra charge if your home needs them.

Optus' Smart Wi-Fi Booster appears to only be available to customers who sign-up for an Everyday Plus NBN plan with no additional charge.

While we haven't been able to test either Wi-Fi booster, we would recommend you also check out the best mesh Wi-Fi systems as a potentially more cost-effective route to full home network coverage.

When it comes to entertainment perks, there is a fair bit of difference between what you'll get from either telco.

Telstra is currently offering a four month Spotify Premium subscription and a two month Binge subscription with all of its NBN plans. However, the caveat here is that you need to be a new customer to either service in order to take advantage. How many people do you know that have never had a Spotify subscription?

Telstra also allows you to subscribe to third-party entertainment services including Fetch TV and Foxtel and you can even add an Xbox Game Pass Ultimate subscription to your NBN plan. If you don't yet own an Xbox games console, you can also buy one through Telstra either outright or on an interest-free payment plan.

Optus, as mentioned earlier, will include a Standard Netflix subscription with all Everyday Plus plans. You can also add an Optus Sport subscription to access a range of sport including the English Premier League for AU$9.99p/m. Optus Sport was once free for Optus customers, then increased to AU$6.99p/m before arriving at its current price in 2024. Non-Optus customers can also subscribe for AU$24.99p/m.

Optus also has what it calls SubHub. This feature allows you to sign-up to a range of popular streaming services and save up to 10% when you bundle three of more subscriptions together. Supported apps include Netflix, Prime Video, Paramount Plus, Binge, YouTube Premium, BritBox, Hayu and Kindle Unlimited, to name a few.

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