Asked to Payback Telstra Free Modem on Month to Month Contract When Transferring to Other RSP

I signed up to Telstra cable on month to month plan in Dec last year. Because I wanted the month to month plan , Telstra wanted to charge me $199 for the modem. After some bargaining, Telstra agreed to waive the fee and gave me a free modem on no contract basis.(I thought it had no conditions attached)

Now, NBN is active in my street and I want to sign up with another RSP. On livechat, Telstra wants me to pay $199 for the modem citing that I am leaving Telstra with 24 months. Such condition had never mentioned to me before and I have the impression that the term is only apply to 24 month contract customers.

Can anyone help to clarify the situation? Thanks for any input.

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  • +8 votes

    Why are you posting here? Call Telstra or go to 24/7 chat. Ask for a copy of your agreement.

  • +6 votes

    cancel you credit card if you have a direct debit setup with them they skimmed my account for 3 months after I cancelled service with them. I tried to be nice and they just flippity flapped me around with lies. Ring them once if it's not sorted call the TIO that's the only way these bastards know how to do business.


      I managed to get rid of the contract with Telstra without penalty March this year with TIO and moved back to TPG.
      The DSLAM in my area is congested and they didn't really care about the Internet stability issue.
      I didn't get charged for anything, there were around 20 months left on contract.

    • +3 votes

      Don't actually do this. It'll get recorded as an infringement on your credit report since it is a utility bill. If they are still charging you after you have cancelled, it is because the service is actually not cancelled because they stuffed up. Call them and get them to cancel it properly and ask your money back.

      • +1 vote

        I support the idea to contact TIO to get the issue resolved.
        I forgot to read the first bit from @hawkeye.

        @sep1 Completely agree with you, never run away from your bills but you can use TIO to tweak it.

  • +1 vote

    Sounds like they have added the cost of the modem as a monthly repayment option (MRO) on the account and probably added a discount so you didn't have to pay.

    Does it show up on your previous bills as MRO or ARO?

    How did you contact them about the modem previously, was it livechat also?


    I assume this is telstra branded modem?

    Why not return it?


      They want the money, not modem. I just found my agreement and it clearly stated that my upfront $240 casual connection fee which includes a WIFI modem had been waived. It did not mention any other conditions as to how long I have to stay with Telstra. Mine is a month to month plan.


        Can you show us a link to the Critical Information Summary for your plan.

      • +1 vote

        Call them up. Get it sorted. They will need to provide you with proof of agreeable. If you can't sort it out and you have proof go to the ombudsman. Case closed.

        • +1 vote

          You forgot "Post on Ozbargain. Provide MSPaint description." steps…

  • +7 votes

    I'd be surprised if they gave you that free, if you could just cancel after a month and score a modem for the cost of 1 months internet

    Doesn't make business sense


      That's essentially what I did. A while back JB HI FI had an offer for the $99 entertainment bundle with no contract and no fees. I got the modem, Telstra TV and 24 months of Foxtel Now and then cancelled after a month.


      I have been with Telstra for over 10 years. Last December when I indicated that I wanted to go with another ISP, they offered me a free modem and waived all upfront fees to sign up to a cable plan with no contract.


        Do you have any of this in writing?

        • +8 votes

          Just came off live chat again and this time the agent confirmed ( after consulted with her supervisor) that I am free to leave at any time and no payment for the modem required. I am keeping the chat script as proof this time.


    I mean…if there was no contract and they didn't specify this, would they actually be able to charge you for this?


    Its quite a reasonable request really

    Simple answer! Just give Telstra back thier modem.
    You wont need it any more

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