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Optus and the almost free phones? Am I missing something?

Discussion in 'Mobile Phones & Devices' started by blued, Oct 23, 2016.

  1. blued

    blued Member

    Joined:
    Apr 29, 2008
    Messages:
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    Location:
    Melbourne
    Looking at getting a new phone.
    Noticed that you can get a phone for +$0 with a $40 Optus plan.
    iPhone 5s, Lumia 650, Galaxy s5 etc.
    Fine print says you can cancel anytime and you'd need too pay the first and last month and any phone costs (which, again, their site seems to suggest are zero for certain phones).
    So you can get one of those phones for less than $100.
    They could be sold on eBay for double what it'd cost you...
    Am I missing something?
     
  2. MR CHILLED

    MR CHILLED D'oh!

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    Link to exact plan please? Will look through the fine print....
     
  3. jigna27

    jigna27 Member

    Joined:
    Nov 20, 2008
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    Link to the $40 T&C: http://smb.optus.com.au/opfiles/Shop/All/cis/Cis%20Documents/CIS_$40_My_Plan_Plus.PDF

    Excerpt of the Cancellation section:
    If you leave your plan early, there are no plan cancellation fees.
    You will simply need to pay out the full remaining cost of your mobile
    handset, which will include any monthly handset credit that Optus
    was going to cover. You will also need to pay the pro-rated monthly
    access fee for your final month and any charges incurred up until the
    cancellation date. This could include usage that is excluded from your
    plan or excess fees if you’ve used more than the included values.
    If you cancel your plan, and there are no other My Plan Plus or My
    Plan Business services on the account, you must also cancel any
    Shared Data Plans on the account. If you don’t, you will continue to
    be charged for any data usage on these services at $10 per 1GB within
    Australia or we may cancel them.

    Certainly reads like you're getting the phone for free!!! Unless there's a built in part-charge for the phone within the $40 monthly fee, perhaps in this line above " any monthly handset credit that Optus
    was going to cover". There's no matching 1gb sim-only plan, and their lowest is $30 for 1.5gb so can't get an idea of what a standard 1gb plan is usually worth. Pretty interesting though
     
    Last edited: Oct 23, 2016
  4. jigna27

    jigna27 Member

    Joined:
    Nov 20, 2008
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    283
    Looking at other phones e.g. iPhone 7 Plus 128gb, the handset payment is only $49. Multiply that by 24 and total is $1176. RRP for that model is $1420, if this is a loophole, people are going to be jumping on it so quick
     
  5. OP
    OP
    blued

    blued Member

    Joined:
    Apr 29, 2008
    Messages:
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    Location:
    Melbourne
    Id probably test it with the $40 plan first :wired:
     
  6. jigna27

    jigna27 Member

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    Nov 20, 2008
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    Come to think of it. I got the 6p last year on the $30 plan and cancelled it straight away. Ended up paying just $744 for the phone. Trying to see what the handset payment was
     
  7. josh_676

    josh_676 Member

    Joined:
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    Messages:
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    Following.

    Need a back up phone.
     
  8. Aaron_85

    Aaron_85 Member

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    Location:
    Townsville
    I think this line means you have to pay out the call credit for the rest of the contract also:
    "You will simply need to pay out the full remaining cost of your mobile handset, which will include any monthly handset credit that Optus was going to cover."

    this part tells me, even if you get one of the no phone repayments phones, you still have to pay out the $40x24 months so $960. Minimum total cost is exactly that, good luck getting away with anything less.
     
    Last edited: Oct 23, 2016
  9. jigna27

    jigna27 Member

    Joined:
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    I don't think that's the case, based on my experience with them last year. There's this line too, that refers to the 'access fee'

    "You will also need to pay the pro-rated monthly
    access fee for your final month and any charges incurred up until the
    cancellation date"

    I'm going on live chat and finding out :shock:
     
  10. fad

    fad Member

    Joined:
    Jun 26, 2001
    Messages:
    2,427
    Location:
    City, Canberra, Australia
    Virgin had a mobile like this one. A Motorola V505. It was a phone for the cost of 1.5 months, $45 dollars.

    I think Optus will have given you a cost of the handset and waived it. They will then change you this cost, if you cancel it.

    Edit: I had a look at the plan and can not see any phone cost waived. Weird.
     
    Last edited: Oct 23, 2016
  11. jigna27

    jigna27 Member

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    When it sounds too good to be true, it usually is :D

    Just chatted with Optus Chat and there's a $23 p/m charge for the phone. So multiply remaining months x $23, works out to be $552 over 24 months. So sounds about right.
     
  12. iMomOx3

    iMomOx3 Member

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    Telstra rep here. I'm sure this is the same that applies to other telcos.

    How it works, you are getting the mobile as part of the plan as a subsidised discount as long as its over a 24month period.

    For a Telstra plan example: We'll use the HTC 10 on a Medium Plan.

    The Medium Plan as a BASE is: $75 per month
    The Phone handset repayments are: $9
    Total: $84 per month over 24 months.
    That would mean over 24 months you're effectively paying $216 for the phone.
    Now the phone outright costs: $1080 divide that by 24 months = $45 (not $9)
    This means the telco is offering a $36 discount per month provided its within a contract.

    Through the 24 months, the telco will provide a discount as long as you stay connected as part of the plan. Should you decide to cancel your contract, you will pay the full remaining cost of the handset by the amount of months remaining. *plus any other applicable charges like pro-rata and whether you're upgrading within the same company or leaving - this differs the cost of cancellation*

    So let's say you had the plan for 2 months - there's 22 months remaining. You will effectively pay the outright cost of the phone minus 2 months.
    $1080 / 24 = $45
    $45 * 22 = $990 because you have lost your discount.

    I will still say read through Optus' Critical Information Summary but that's how it works - I have to explain this part ALOT to customers on a daily basis who thinks they can get out of their plan and upgrade without paying any sort of fee because they paid a "$0" handset and the phone was free. It's never free.

    Hopefully that wasn't confusing.

    Edit: In the case of the Optus plan as I just read one of the above comments, it seems like the $40 plan is a casual (month-month) plan with no commitment term. HOWEVER, the mobile handset is contracted. So over 24 months the HANDSET is in contract, but not the plan. Once you cancel the plan, you lose the discount for the handset repayments and thus will incur the full remaining costs involved with the handset.
     
    Last edited: Oct 27, 2016
  13. sanjay

    sanjay Member

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    its because the "$40 plan" you get with the phone is crap compared to the $40 sim only plan. the $40 plan with the phone gives you 1gb data as compared to 8 on sim-only. also, that $40 plan requires a 24 month contract (as opposed to 12 for the SIM only). the actual value of that plan is probably closer to $20 - so over a 24 month period you're paying ~$20 out of the $40 per month towards the phone cost itself ($480, which is about right for the phones youve identified, if a bit high).
     
  14. StratosFear

    StratosFear Member

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    Location:
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    I know this has kind of already been answered, but you need to get to the cart to see that these "free" phones actually have a device credit. For example the Lumina 650:

    https://i.imgur.com/CWmkGGl.png

    Free on a $40 plan however if you cancel you need to pay $12*24 months for the phone as you no longer get the device credit.

    So not free...

    Funninly enough, Optus have tightened this up in the last 6 or so months. When the 6P was first released where it was $0 handset on an $80 plan with a total cancellation fee of $400 (minus a $200 credit)... I ended up walking out with two Nexus 6P's for $200 each. So I've kept a pretty close eye on their contracts since, but they all seem water tight now.
     

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