A LOW-COST option for the national broadband network has emerged, with a discount carrier promising broadband and telephone services for less than $40 per month.

The news comes a day after Internode released the first retail prices for customers with access to the government-owned network.

Internode's prices range from $60 to $190 which is higher than expected for the faster speeds. The managing director, Simon Hackett, said this was because of the high access and capacity fees NBN Co was charging for its fibre-optic network.

But the managing director of Melbourne-based ispONE, Zac Swindells, said that the number of connection points on NBN Co's network imposed a bigger cost than capacity charges.

IspONE is an aggregator, which means it connects directly into NBN Co's network and then sells access and services to smaller companies which then onsell to retail customers.

''We are used as [internet service providers] to paying the [capacity] charge. The issue is the back-haul charge from the 121 exchanges which is going to create greater costs to us,'' he said.

But the connection costs are not a concern for wholesale customers such as cut-price carrier Dodo, which resells Telstra or Optus services under its own label.

Dodo confirmed plans yesterday to offer an entry-level product for less than $40 per month.