What are Telcos doing to keep you in your contract for longer?

They call you up and offer you a brand new phone for just $99 so how could you say no? It’s a sneaky trap that just about everyone falls for. Optus is now joining the Telstra ‘way’ by locking in new contracts before the last ones are even finished. Now people on a 24-month plan will be offered an upgrade halfway through their contract.

The first thought is, a new phone? Yes please! But what people tend to forget is this is just a way telecommunications companies lock in longer contracts with their customers. Optus will now allow customers to trade in their old phone, pay a one-off $99 fee and then renew a contract for, you guessed it, another 24 months. Just when you thought you were locked in for the original two years, you’ve allowed yourself to stay with them for even longer.

Telstra was first to con us into renewing contracts with them with their New Phone Feeling offer. When it launched it was simply an option for customers to upgrade for just an extra $10 a month. Either way, both companies have mastered convincing their customers to continue staying with them because of the ‘great value’ perceived.