Some Advice on Telstra Contract

L[Deactivated] on 17/01/2015 - 05:39

Hoping to get some advice from fellow OzBargainer's as I know some of you are quite smart with consumer laws etc and may be able to help me.

I am on a 24 month contract with Telstra. I am on a $60/Month plan plus $9 handset repayments(Nexus 5). I also have a 3GB data pack.

I would consider myself a good customer. I have been with Telstra for about the last 5 years with other service like home phone and cable broadband. I always pay my bills in full and on time.

I have outgrown my Nexus 5 the past few months. The battery is terrible and the speakers are weak, plus I would like to have a better camera.

I contacted Telstra to see how much I would have to pay to re-contract with them. I am almost 13 months into my 24 month contract.

I was told I need to buy the handset out and pay a $50 re-contracting fee, fair enough, except that the value of the Nexus 5 phone after over 1 year is valued at just a touch over $400 according to Telstra. So to re-contract, I need to pay around $450.

I know I signed a contract, so this is on me, please do not feel the need to remind me of this :P.

After further digging, the contract I so stupidly signed has the value of the Nexus 5 at $800!!! I was gobsmacked. The phone is the 16gb version which has been around $400 since day 1. I don't know how Telstra can justify the price tag so I asked them. I asked in store, online and on their FB page. No one could give me a proper answer. I accept responsibility for singing the contract and the headaches I have now caused myself, but from a legal standpoint are Telstra allowed to do this? Are they allowed to say 'Hey, this $400 phone here, we will just double the cost to $800'? For a premium phone I can totally understand the $800 price tag because you can at least make some of it back by selling the phone. I have a 16GB Nexus 5 that is 1 year old with a crap battery and a small crack in the screen, I would be lucky to get $80, maybe $150 without the crack.

I really nee a new phone so I was going to go ahead and pay the contract out today, thought i'd get on here first and see if anyone had any thoughts or advice on this matter?

Please, once again, NO reminders of how much of an idiot I am, and that I signed a contract etc etc. I have been telling myself just fine how stupid I am :)

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Comments

  • spal on 17/01/2015 - 09:10
    +6

    If you are happy with your contract phone plan. You can invest $450 you are willing to give Telstra into yourself buying a new or a telstra locked phone. This way you will have the choice of handset; warranty on the new phone and out of contract in 9 months.
    edit sell your nexus for whatever too. That should get you a decent phone.

    • jzdhgkd on 17/01/2015 - 10:07
      +3

      Agreed with Spal. Keep the phone and contract and then buy yourself a replacement. A grey import G3 is going for not much more than $450 and you'll be getting a much better phone (assuming you'd enjoy the huge screen.)

  • Geewhizz on 17/01/2015 - 13:43
    +1

    Aren't you supposed to be able to give them back their phone and enter into a new contract after 12 months these days, at no additional cost?

    That aside, I agree with those who have suggested just buying yourself a replacement phone and not extending your contract time.

    • Islund on 17/01/2015 - 14:02
      +2

      Only on certain plans that start North of $70 as I undestand it.

    • [Deactivated] on 17/01/2015 - 15:23
      +1

      I believe this is optional and requires an extra $10 monthly payment. Unfortunaltey i didn't get this when I got my nexus, wish I did.

  • [Deactivated] on 17/01/2015 - 15:22
    +1

    Thanks for the help guys. I think putting the $450 to a new phone is the best way to go, and that way I don't have to slug out another 2 year contract if I wish to upgrade a bit early.

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