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Level 1: Cadet

Contracted Phone Plan

Once my 24month plan has ended do I own my phone. I was told on a Telstra Shop Representitive  yesterday that If I hand my phone In now before my contract plan ends ( May 2020) and upgrade to a new plan I have to pay out the phone costing $378. What surprised me is that he said  even if I wait until May when the Plan is finished I will have to pay $240 because the screen and casing is cracked. The phone is still in working order. He said this was not Telstra but Apple as they had to send the phone back to Apple. In the past I kept the old Iphone and got a new one without involving any cost other than for the new phone and plan.

wondering if anyone else had been told this

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2 REPLIES 2
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Level 11: Detective
Level 11: Detective

Re: Contracted Phone Plan

Sounds like your current phone plan is a Lease.

What this means is that the phone is still and will remain property of Telstra, the benefits of a lease plan is more flexibility in upgrading to a different device compared to a device ownership plan and generally a cheaper cost per month, usually $240 cheaper over the full 24 months

 

At the end of a lease plan, you can buy the phone for 20% of the fair market value of the phone, this may or may not be cheaper than the $240 major damage return fee.

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Level 1: Cadet

Re: Contracted Phone Plan

Thankyou, I am on  a Telstra Swap Plan. however although I was told that I could upgrade both the phone and plan I was never told that the phone  still belonged to Telstra for eternity.

Guess lesson as always is to read the small print.

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