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You cannot reasonably expect any customer service representative, or Telstra as a company, to just circumvent or change the business rules to accommodate you and your preferred terms. If you want new handsets for which the retail prices are effectively fully subsidised/paid for by Telstra, then you cannot remain on your old plans – that is not negotiable.
I think I said that I was willing to resign for 2 years on new deals, so long as I dont have to pay more than I am at present. I dont think that is unreasonable!