Australian internet prices soar as speeds remain slow

The wrong home internet plan can mean more than $650 a year in wasted cash for Australian households.

Prices are rising despite slow speeds, and there are now calls to treat the internet more like an essential service rather than a luxury.

Despite appearances, it's by no means an internet free-for-all at the Reynolds' house in Melbourne, but with three kids - the modem does get a workout.

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"When we do allow screentime, the gates tend to open somewhat and our internet really gets thrashed," Dad Tom Reynolds said.

It costs $100 a month, but that's usually just the start.

"It's the little things on top of that ... the $5 here, the $10 there for the other internet services - that can really add up," Mr Reynolds said.

To keep costs down the family recently moved providers, something experts say everyone should do annually.

Tara Donelly editor of Canstar Blue Telco who compares deals, said people often stayed with the same company for years.

"Most of us have been with our current provider for around five years, so it seems like we are quite loyal when it comes to broadband," Ms Donelly said.

The gap between cheap and expensive plans is widening.

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For unlimited NBN, prices range from $50 to $120 per month.

Details vary, but being on the wrong plan could cost more than $650 a year.

Customers should also beware of any activation or set-up fees, additional costs for a modem, or lock-in terms.

"Probably every 12 months or so is a good time to have a look at what's out there," Ms Donelly said.

Consumer groups say the industry needs to do better.

Acting Deputy CEO Andrew Williams from the Australian Communications Consumer Action Network said internet was a vital part of life today.

"Telecommunications and broadband in particular is an essential service - it's as important as electricity and water," Mr Williams said.

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Internet speeds across the country are also disappointing.

In fact, Australia is now ranked 56th in the world, below countries like Trinidad, Tobago, Estonia and Bulgaria - all the more reason to make consumers are not overpaying.

Both Optus and Telstra have lifted prices since May.

The telco giants blame higher NBN costs.