The dozens of different kinds of mobile phone plans, call costs and special offers available can make choosing a phone service confusing. If you take time to think about your usage patterns and what you can afford, it will be easier for you to choose a service that best meets your needs. Most phone companies offer other options, such as pre-paid credit or leasing, that give you access to a phone service without signing a long-term contract.
Entering a contract
As a consumer, you have rights and obligations in relation to any contract that you enter into, including for a mobile phone service. Pay close attention to call rates and make sure you understand how your call charges will be calculated. Under a typical contract, calls up to a certain value are included as part of the monthly access fees. When calls exceed this value they are charged at a rate set out in your contract. Different call rates may apply for peak, off-peak, calls to numbers on other networks.
Can my call charges increase while I am under contract?
Many consumer contracts, including mobile phone contracts, are subject to variation clauses. These allow the service provider to make changes to terms and condition, including prices. If your phone charges change, you should ask your service provider for details about what part of your contract allows them to do this.
Terminating a contract
In signing your contract, you are entering a legally binding agreement to pay your monthly charges for the term of the agreement. Depending on the terms and conditions of the contract you have signed, you may have to pay a penalty if you decide to leave part way through the contract. Even if you cannot make any calls because you don’t have your phone, you still have to fulfil this commitment. You may still be liable for charges if your mobile phone is lost, stolen or broken.
I think I was misled into entering a contract
It is against the law for a business to mislead you or deceive you about its products or services. If the phone service you agreed to doesn't meet the description or information you were given, then the service provider may be breaching the Trade Practices Act.
If you think you have been misled, you should first try to resolve your concerns with the trader. If a call to a customer service hotline is not enough, write a letter to the trader requesting termination of your contract on the grounds that you were misled. You will need to clearly explain why you consider that you have a right to terminate the contract, and be prepared to offer evidence such as copies of any promotional material you relied on and conversations that you had with sales people to demonstrate that you were misled. Visit our how to complain page for help.
If you are not satisfied with the resolution or explanation offered by the trader, contact the Telecommunications Industry Ombudsman (TIO). You must have tried to resolve the dispute with your phone service provider before the TIO can consider your complaint.
You can also contact our Infocentre or the office of fair trading in your state or territory if you are unsure of your options.
