Telcos ring in changes for smart phones

SMARTPHONE users have caught a break, with telcos introducing 36-month terms for paying off handsets, instead of the traditional 24 months.

The latest iPhone X costs $1579, while the Samsung S9+ 64GB devices start from $1349, which customers can now repay in smaller increments.

Vodafone and Woolworths are among those offering longer deals, but telco comparison website WhistleOut’s spokesman Kenny McGilvary said there are pros and cons.

“If you want to have a lower monthly payment and are happy to stick with the same handset then, yes, they are a good plan because you can manage your cashflow better,’’ he said.

“But if you are someone who likes having a newer phone in your hands then it locks you in.”

Vodafone’s consumer business unit director Ben McIntosh said the telco has “ripped up” old-fashioned 24month contracts in favour of flexible term options and month-by-month usage deals.

“For 30 years it’s been sign your life away for two years and you can’t change plans, if one of the big boys brings out a new plan you can’t switch to that because you are stuck,’’ he said.

“With us you take your smartphone of choice and pay for it interest free over 12, 24 or 36 months.”

Mr McIntosh said customers can pick a month-to-month plan to marry up with their handset and if they do decide to switch carriers they pay out the remainder owing on their device without being stung with early payment fees.

Supermarket giant Woolworths, which uses the Telstra network, also allows customers to pay off devices such as Samsung, Motorola or Oppo phones over three years, starting from $32 per month.

Its head of mobile James McMurrough said the 36-month deals started late last year because customers were holding on to the phones for longer than two years without wanting an upgrade.