Dodo moves 100,000 customers to cheaper internet plans

Dodo has moved nearly 100,000 internet customers to cheaper plans after reviewing their usage, a change it says is saving those households a combined AUD $1.2 million a month.

The initiative targets customers paying for more speed than their household typically used. Dodo identified eligible users by analysing peak-hour consumption and focusing on customers with consistently low utilisation who rarely reached the full limit of their existing plan.

Customers moved under the programme are expected to save a combined AUD $14.4 million over the next year if they remain on their new plans. Those moved from NBN 50 plans save a standard AUD $12 a month.

The move comes as a survey commissioned by Dodo pointed to widespread uncertainty among Australians about their internet plans and whether they fit household needs. More than half of respondents, 53%, said they did not know what internet speed they were paying for, while 47% were not confident explaining the difference between NBN 25 and NBN 100.

The knowledge gap

The findings suggest many households are not regularly reviewing whether they are overpaying for internet services. One in four respondents said they believed they were paying for more internet than they needed, while only 17% said they regularly checked what speed their household required.

Almost one in five, or 18%, said they had never reviewed whether their internet plan was the right fit. A further 14% said they did not know how to check.

Trust also emerged as an issue. Only 37% of respondents said they believed their internet provider was most likely to recommend the plan that best fit their needs.

Some 35% said they expected to be sold a faster or more expensive plan than necessary. Another 28% believed their provider either did not care what plan they were on or would sell them the most popular or average option.

April Cooper, Interim Chief Executive, Consumer at Vocus, Dodo's parent company, said the provider introduced the plan changes in response to a gap between what households think they need and what they actually use.

"Aussies shouldn't have to be speed experts or bill auditors to avoid paying for internet they don't use," said April Cooper, Interim Chief Executive, Consumer at Vocus.

"The way Australians live and work has changed, and what a household thinks it needs on paper doesn't always reflect what it actually uses. Where customer usage clearly shows a lower-cost plan will comfortably meet their everyday needs, we believe the right thing to do is help them move and keep that money in their pockets," Cooper said.

Household pressure

The survey also linked internet spending to broader household budget strain. Less than half of respondents, 42%, said they felt in control when managing household bills.

About 21% said they felt overwhelmed when reviewing and organising their bills, while 20% said the process made them feel anxious. Among those who said bill management had become harder, 64% cited price increases, 53% pointed to greater financial pressure and 26% said there were too many providers or plans to compare.

Dodo said those savings could have a direct effect on household budgets. When respondents were asked how they would use savings of up to AUD $19 a month on their internet plan, 32% said they would save the money and 30% said they would put it towards everyday expenses such as groceries.

One in five said the money would provide relief because they were living paycheque to paycheque. Another 19% said they would use it to get ahead on monthly bills.

Cooper said the survey showed scepticism towards telecoms providers at a time when faster plans are becoming more common across the market.

"Around a third of Aussies believe telcos will recommend faster or more expensive plans than they need, and as the landscape and internet access changes we're seeing an industry shift to faster plans, where in many cases there's no customer need for extra speed," Cooper said.

Dodo plans to extend the approach through a programme called Autopilot, which it described as a way to keep internet plans aligned with actual household usage. The company serves more than half a million customers across Australia in internet, mobile and energy services.

Cooper said value in telecoms should be judged by whether customers are matched to suitable plans rather than by headline pricing alone.

"Being a good value provider isn't just about having a competitive price, it's about doing the work to make sure customers are getting value every day. That means understanding how people actually use their services, helping them make informed choices and stepping in when there's a better option for them. We want customers to feel that we're on their side, not just selling them something," Cooper said.