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Internet plans over the national broadband network are getting cheaper, a new report says, despite recent criticism from retailers that their NBN costs are too high.

A report by the Australian Competition and Consumer Commission says average prices of fixed internet services fell 9.4 per cent in the 2016/17 financial year, with NBN prices down 4.5 per cent and non-NBN prices falling 11.2 per cent.

The report said improvements in data allowances had driven the decline, which suggests customers are getting better value out of their broadband plans.

The cost of wireless broadband and mobile services also dropped last financial year, and ACCC acting chair Delia Rickard said consumers were getting greater value for money due to competition in the telco sector.

‘At a time when affordability in energy markets is a major concern, competition in the broadband and mobile market is continuing to benefit consumers,’ Ms Rickard said.

‘We are seeing new players enter the fixed and wireless broadband markets and this will provide further competitive pressure going forward.’

Retailers have previously criticised NBN Co’s broadband pricing for being too expensive, saying the costs were limiting the industry’s ability to provide faster speeds to customers.

In December, NBN Co responded to calls from retailers to slash the price of access to the network by reducing the cost of its top-tier internet access plans in a bid to convince retailers to buy more bandwidth.

The options will come into effect from April, and will give those using lower speed NBN packages the opportunity to have their plans upgraded to faster speeds.

HOW CHEAP IS CHEAP?

* Wireless broadband: 6.7% annual price decrease

* Mobile Services: 3.1% annual price decrease

* Fixed broadband: 9.4% annual price decrease