dean1080
Level 1: Cadet

From 4S to 5 - upgrading my contract.

Answered

Hi There! 

I am currently 9 months into my 24 month plan with Telstra. I curerntly have an iPhone 4S, but i am looking to upgrade to the iPhone 5. 

I want to upgrade to the iPhone 5, in doing so, i wish NOT to cancel my current contract with telstra... just change the handset. I will be obtaining the device through telstra.

At the moment, i pay $23 a month ontop of my $59 dollar cap, with a $15.00 bonus, summating the monthly payable amount to $67.00. 

As i have 15 months left on my contract the outstanding MRO is $353. 

I have spoken to a representative about upgrading. This is what i have been told: 

The handset will cost nothing up front - It will continue on my current contract, but it will renew the 24 months. 
On top of my current plan i will have to pay $23 a month to pay off my current handset the 4S. 

Meaning that my monthly amount payable when i upgrade will be $90.00. 

So my questions are: 
1. Is this correct?
2. Does the iPhone cost nothing upfront to preorder? 
3. Will telstra send out the new, nano sim when i upgrade my service, which will have the same number? 


Thank you, 
Dean Lovett.




1 ACCEPTED SOLUTION

Accepted Solutions
Drat
Level 22: Superhuman
Accepted Solution

Re: From 4S to 5 - upgrading my contract.


dean1080 wrote:

I want to upgrade to the iPhone 5, in doing so, i wish NOT to cancel my current contract with telstra... just change the handset. I will be obtaining the device through telstra.


Let's make one thing clear: Not cancelling your current contract, but still obtaining a new handset by Mobile Repayment Option (MRO), is not an available option.

 

What is being offered is that you cancel your contract early, and Telstra will waive any applicable early termination charge (ETC) for your current mobile service contract, if the reason you're doing so is to sign up for a new mobile service contract (picking only from the plans that are currently available) with a 24-month minimum term and also acquire a new handset by MRO over 24 months.


At the moment, i pay $23 a month ontop of my $59 dollar cap, with a $15.00 bonus, summating the monthly payable amount to $67.00. 


You are paying a net monthly handset repayment of $8 in addition to the monthly plan fee of $59 (plus any chargeable usage), and not $23. $23 is 124 of your original MRO debt, and the amount you would be paying if there was no MRO Bonus applicable.


As i have 15 months left on my contract the outstanding MRO is $353.


$353 divided by $23/month is 15.35 months, so that sounds about right as the balance of your MRO debt outsanding on your current handset, and the amount you have to settle, either in a lump sum or in monthly instalments of $23, when you cancel your current contract.


The handset will cost nothing up front - It will continue on my current contract, but it will renew the 24 months. 


That is incorrect. Your current contract is for the Freedom Connect Plan $59, which is no longer available for new sales. If you (pre-)order an iPhone 5, you will need to sign up for a new contract – with a 24-month minimum term – for an Every Day Connect Plan; the equivalent plan to what you have now will be the Every Day Connect Plan $60.

It is true that the acquisition of the new iPhone 5 handset will require no upfront payment.


On top of my current plan i will have to pay $23 a month to pay off my current handset the 4S. 

Meaning that my monthly amount payable when i upgrade will be $90.00. 


You (and anyone else) can get the 16GB model of the iPhone 5, on an Every Day Connect Plan $60, for a total minimum monthly cost to you of $67.

To be clear, your $90 minimum monthly spend (for the next 15 months) will be for:

  • Monthly plan fee of $60, for the Every Day Connect Plan $60;
  • Net monthly handset repayment for the iPhone 5 of $7, after the $10 MRO Bonus credit included in the plan is applied (Note: Your actual MRO debt for the iPhone 5 16GB will be $(17×24).); and
  • Monthly handset repayment for the iPhone 4S of $23, until your MRO debt for it has been paid off, i.e. if you do not pay off the $353 owing in a lump sum.

 

 

——
Departed from CrowdSupport as of 12 June 2013, when the fun factor for me had finally completely evaporated with all the recent site layout and functionality changes, and the apparent efforts to turn a community goodwill-powered vehicle into something closer to a customer service channel.

The opinions and sentiments expressed above are mine only, and do not necessarily reflect Telstra's views or position. I work at Telstra, but my participation here is strictly in a personal capacity as a fellow Australian telecommunications services consumer, and you can safely assume you are not my customer, client, patron, benefactor or friend when I post in this forum.

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9 REPLIES 9
Ben_F
Community Alumni (Retired)

Re: From 4S to 5 - upgrading my contract.

Hi Dean,

 

I'm assuming your on a $59 Freedom Connect Plan. If this is the case, you are not eligible for an MRO Bonus if you don't renew your contract, which you can't do because you can't recontract on the Freedom Connect Plan anymore (You have to go to the Everday Connect Plans).

 

So you would essentially pay:

  • $59 per month for the plan
  • ETC Charges for your old handset for the remaining number of months, less the MRO Bonus (You loose this). Therefore, your total Handset repayments are $23 +$15 (so $38 per month for 13 months)
  • The new charge for the iPhone 5, without any MRO Bonus, as you cannot recontract your service contract with Telstra without moving to the Everyday Connect Plan

Estimated Cost: $59 + $38 + $27 for the iPhone 5 64GB = $124 per month for 13 months, dropping to $86 a month for the remainder of the contract.

 

Your are correct there will likely be no upfront cost for the Handset with Telstra, and you are correct that, should you order over the phone (You can't order this one online) or in store, that they wll supply you with a Nano Sim.

 

B.

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dean1080
Level 1: Cadet

Re: From 4S to 5 - upgrading my contract.

Thank you for the response Ben! 

over looking my bill i have noticed, that i have a 'mobile repayment option bonus' that is credit $15.00... that is an MRO bonus? 

 

with respect to this: 

So you would essentially pay:

  • $59 per month for the plan
  • ETC Charges for your old handset for the remaining number of months, less the MRO Bonus (You loose this). Therefore, your total Handset repayments are $23 +$15 (so $38 per month for 13 months)
  • The new charge for the iPhone 5, without any MRO Bonus, as you cannot recontract your service contract with Telstra without moving to the Everyday Connect Plan"

    I understand that i would have to pay the $23, but why the $15.00? 

    Also, i am looking at getting the 16GB are you able to do an estimated cost for that? 

    Thank you very much i appreciate it immensly! 

    Best, 
    Dean. 
Ben_F
Community Alumni (Retired)

Re: From 4S to 5 - upgrading my contract.

Hi Dean

 


@dean1080 wrote:

Thank you for the response Ben! 

over looking my bill i have noticed, that i have a 'mobile repayment option bonus' that is credit $15.00... that is an MRO bonus? 

 

with respect to this: 

So you would essentially pay:

  • $59 per month for the plan
  • ETC Charges for your old handset for the remaining number of months, less the MRO Bonus (You loose this). Therefore, your total Handset repayments are $23 +$15 (so $38 per month for 13 months)
  • The new charge for the iPhone 5, without any MRO Bonus, as you cannot recontract your service contract with Telstra without moving to the Everyday Connect Plan"

    I understand that i would have to pay the $23, but why the $15.00? 

Because your original MRO won't be an MRO, it will be an Early Termination Charge, you loose the bonus (as it only applies to MRO). MRO = Mobile Repayment Option for clarificatoin Smiley Happy

 


@dean1080 wrote:
Also, i am looking at getting the 16GB are you able to do an estimated cost for that? 

I can give you an esitmated cost, but note I don't work for Telstra and this post can't be used against Telstra if I'm wrong Smiley Wink

 

I think the handset repayment might be $17 instead of $27, so a $10 discount per month. I could be wrong however, its based on what they are charging for the MRO on the everday Connect Plans.

 

B.

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Drat
Level 22: Superhuman
Accepted Solution

Re: From 4S to 5 - upgrading my contract.


dean1080 wrote:

I want to upgrade to the iPhone 5, in doing so, i wish NOT to cancel my current contract with telstra... just change the handset. I will be obtaining the device through telstra.


Let's make one thing clear: Not cancelling your current contract, but still obtaining a new handset by Mobile Repayment Option (MRO), is not an available option.

 

What is being offered is that you cancel your contract early, and Telstra will waive any applicable early termination charge (ETC) for your current mobile service contract, if the reason you're doing so is to sign up for a new mobile service contract (picking only from the plans that are currently available) with a 24-month minimum term and also acquire a new handset by MRO over 24 months.


At the moment, i pay $23 a month ontop of my $59 dollar cap, with a $15.00 bonus, summating the monthly payable amount to $67.00. 


You are paying a net monthly handset repayment of $8 in addition to the monthly plan fee of $59 (plus any chargeable usage), and not $23. $23 is 124 of your original MRO debt, and the amount you would be paying if there was no MRO Bonus applicable.


As i have 15 months left on my contract the outstanding MRO is $353.


$353 divided by $23/month is 15.35 months, so that sounds about right as the balance of your MRO debt outsanding on your current handset, and the amount you have to settle, either in a lump sum or in monthly instalments of $23, when you cancel your current contract.


The handset will cost nothing up front - It will continue on my current contract, but it will renew the 24 months. 


That is incorrect. Your current contract is for the Freedom Connect Plan $59, which is no longer available for new sales. If you (pre-)order an iPhone 5, you will need to sign up for a new contract – with a 24-month minimum term – for an Every Day Connect Plan; the equivalent plan to what you have now will be the Every Day Connect Plan $60.

It is true that the acquisition of the new iPhone 5 handset will require no upfront payment.


On top of my current plan i will have to pay $23 a month to pay off my current handset the 4S. 

Meaning that my monthly amount payable when i upgrade will be $90.00. 


You (and anyone else) can get the 16GB model of the iPhone 5, on an Every Day Connect Plan $60, for a total minimum monthly cost to you of $67.

To be clear, your $90 minimum monthly spend (for the next 15 months) will be for:

  • Monthly plan fee of $60, for the Every Day Connect Plan $60;
  • Net monthly handset repayment for the iPhone 5 of $7, after the $10 MRO Bonus credit included in the plan is applied (Note: Your actual MRO debt for the iPhone 5 16GB will be $(17×24).); and
  • Monthly handset repayment for the iPhone 4S of $23, until your MRO debt for it has been paid off, i.e. if you do not pay off the $353 owing in a lump sum.

 

 

——
Departed from CrowdSupport as of 12 June 2013, when the fun factor for me had finally completely evaporated with all the recent site layout and functionality changes, and the apparent efforts to turn a community goodwill-powered vehicle into something closer to a customer service channel.

The opinions and sentiments expressed above are mine only, and do not necessarily reflect Telstra's views or position. I work at Telstra, but my participation here is strictly in a personal capacity as a fellow Australian telecommunications services consumer, and you can safely assume you are not my customer, client, patron, benefactor or friend when I post in this forum.

View solution in original post

Ben_F
Community Alumni (Retired)

Re: From 4S to 5 - upgrading my contract.


@Drat wrote:

@dean1080 wrote:

I want to upgrade to the iPhone 5, in doing so, i wish NOT to cancel my current contract with telstra... just change the handset. I will be obtaining the device through telstra.


Let's make one thing clear: Not cancelling your current contract, but still obtaining a new handset by Mobile Repayment Option (MRO), is not an available option.

 

What is being offered is that you cancel your contract early, and Telstra will waive any applicable early termination charge (ETC) for your current mobile service contract, if the reason you're doing so is to sign up for a new mobile service contract (picking only from the plans that are currently available) with a 24-month minimum term and also acquire a new handset by MRO over 24 months.


Can you quote me the relevant section of Our Customer Terms that says that? As I understand it, the MRO contract and the Service Contract are different, and it is not a requirement to be in a Service Contract in order to get a Mobile Repayment Option.

 

B.

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Drat
Level 22: Superhuman

Re: From 4S to 5 - upgrading my contract.


Ben_F wrote:
As I understand it, the MRO contract and the Service Contract are different, and it is not a requirement to be in a Service Contract in order to get a Mobile Repayment Option.

They are legally separate contracts. As far as I'm aware, it is a business rule that a new MRO contract must have the same start and end dates as the minimum term of the service contract for a post-paid plan to which the MRO contract is attached. I don't see anything in writing to commit Telstra to offering MRO contracts on their own, and Our Customer Terms doesn't always state what is not on offer to the market.

——
Departed from CrowdSupport as of 12 June 2013, when the fun factor for me had finally completely evaporated with all the recent site layout and functionality changes, and the apparent efforts to turn a community goodwill-powered vehicle into something closer to a customer service channel.

The opinions and sentiments expressed above are mine only, and do not necessarily reflect Telstra's views or position. I work at Telstra, but my participation here is strictly in a personal capacity as a fellow Australian telecommunications services consumer, and you can safely assume you are not my customer, client, patron, benefactor or friend when I post in this forum.
Ben_F
Community Alumni (Retired)

Re: From 4S to 5 - upgrading my contract.


@Drat wrote:

@Ben_F wrote:
As I understand it, the MRO contract and the Service Contract are different, and it is not a requirement to be in a Service Contract in order to get a Mobile Repayment Option.

They are legally separate contracts. As far as I'm aware, it is a business rule that a new MRO contract must have the same start and end dates as the minimum term of the service contract for a post-paid plan to which the MRO contract is attached. I don't see anything in writing to commit Telstra to offering MRO contracts on their own, and Our Customer Terms doesn't always state what is not on offer to the market.


However, you would assume that those business rules are Codified in Our Customer Terms, similar to the Upgrade/Downgrade clauses for each relevant plan no?

 

B.

----------------------------


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Drat
Level 22: Superhuman

Re: From 4S to 5 - upgrading my contract.


@Ben_F wrote:

However, you would assume that those business rules are Codified in Our Customer Terms, similar to the Upgrade/Downgrade clauses for each relevant plan no?


Not necessarily. The upgrades and downgrades you refer to are actions initiated by the customer within the minimum term of a contract, whereas offering an MRO to a new customer for a new handset is not; the customer cannot unilaterally decide to bolt a new MRO onto an existing contract if it is not being offered.

 

Customers who want to acquire new handsets by MRO, are not entitled to do so by section 20 of Part C – Special Promotions in the Telstra Mobile section of Our Customer Terms, for Next G Cap Plans, Freedom Connect Plans or Every Day Connect Plans.

 

Section 8.12 in Part B – Our Current Consumer Pricing Plans in the Telstra Mobile section of Our Customer Terms stops customers on Freedom Connect Plans from being able to get the iPhone 5 by MRO at the advertised pricing (for pre-order), because it would be impossible for them today to be eligible for an MRO Bonus with respect to that. 

——
Departed from CrowdSupport as of 12 June 2013, when the fun factor for me had finally completely evaporated with all the recent site layout and functionality changes, and the apparent efforts to turn a community goodwill-powered vehicle into something closer to a customer service channel.

The opinions and sentiments expressed above are mine only, and do not necessarily reflect Telstra's views or position. I work at Telstra, but my participation here is strictly in a personal capacity as a fellow Australian telecommunications services consumer, and you can safely assume you are not my customer, client, patron, benefactor or friend when I post in this forum.
Avianfillybro11
Level 1: Cadet

Re: From 4S to 5 - upgrading my contract.

I have an iphone 4s and im looking to upgrade to an iphone 5 im on the $79 freedom connect plan would i be able to upgrade to an iphone 5 ?

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