F_josif
Level 1: Cadet

PLAN UPDATE

I signed up for a 24 mnth contract on the $79 Freedom Connect Plan with MRO. I was reading my plan details and needed an explenation on the following terms

 

"If you cancel your Freedom Connect Plan or move to another plan (except a Freedom Connect Plan with the same or higher spend) before your minimum term’s ended, you must pay an early termination charge (ETC)."

 

Does that mean if I would like to update my plan after 5 mnths of my contract to a new phone on the currant plan value and not cancel my plan I am not required to pay ETC? 

 

My understanding when I signed up is that if I was just to change my fone to a newer model I would be required to pay MRO x remaining months? is that True? 

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3 REPLIES 3
Drat
Level 22: Superhuman

Re: PLAN UPDATE


Does that mean if I would like to update my plan after 5 mnths of my contract to a new phone on the currant plan value and not cancel my plan I am not required to pay ETC? 

It's not an option for you to “update” your plan to “a Freedom Connect Plan with the same or higher spend” and re-contract for a new 24-month minimum term, in order to be able to get a new handset by MRO, because the Freedom Connect Plans have been withdrawn and are no longer available for new contracts.

 

If you cancel your current contract now in order to sign up for an Every Day Connect Plan with the same or higher minimum spend (not including net monthly handset repayments) as your Freedom Connect Plan, then Telstra has sole discretion whether or not to waive the ETC.


My understanding when I signed up is that if I was just to change my fone to a newer model I would be required to pay MRO x remaining months? is that True? 

Generally Telstra will let you do that, but it is neither an open promise it makes to all and sundry for all time, nor an entitlement that is guaranteed in Our Customer Terms.

 

Also remember that your net monthly handset repayment is determined after the monthly MRO Bonus credit included in your post-paid plan is applied. If you cancel your contract early, then you're no longer entitled to the MRO Bonus (from the remainder of its minimum term) to offset the balance of your MRO debt. In other words, if for example your net monthly handset repayment is $3 on the handset you got at the start of your Freedom Connect Plan $79 contract, then the balance of your MRO debt is $(3+20)×(number of months remaining in the minimum term of your contract).

——
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.
F_josif
Level 1: Cadet

Re: PLAN UPDATE

Thanks Drat for the response 🙂

 

The reason I am asking now that the Note 2 is coming out soon. I am looking at what options I have to update my phone without cancelling my plan and how much it would cost to do so. So what I calculated would be the cost to do this move would be essentially 3x18=$84 but from what your saying it would be more like 23x18=$414.

 

Still unsure what the whole deal is around MRO and MRO bonus. To me it sounds like a way of making the plans sound more enticing when it means nothing at all except for a plan like all other providers with extra cost for handset repayments

Drat
Level 22: Superhuman

Re: PLAN UPDATE


I am looking at what options I have to update my phone without cancelling my plan and how much it would cost to do so.

Essentially, not cancelling your current plan/contract is not an option, if you want Telstra to pay an MRO Bonus to offset the cost of your new (Samsung Galaxy Note 2) handset.


Still unsure what the whole deal is around MRO and MRO bonus. To me it sounds like a way of making the plans sound more enticing when it means nothing at all except for a plan like all other providers with extra cost for handset repayments

It's structured so that customers can still get effectively the same outcome of getting a subsidised (or ‘included’) handset on a 24-month contract, if and only if they remain with Telstra for the full minimum term. However, customers who understand the logic of it can expect to end up paying more, all up, to cancel the contract(s) early instead of staying put – without it being deemed a ‘penalty’ from a regulatory perspective. It's also an effective way of strongly encouraging customers to move off ‘grandfathered’, withdrawn-from-market plans every 24 or so months.

 

In short, the idea is absolutely brilliant. Robot LOL 'Tis a pity I didn't think it up myself!

——
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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