Optus follows Telstra and Vodafone in offering 36-month plan

Telco giant Optus has revealed a major new change to plans to keep up with rivals Telstra and Vodafone.

Telco giant Optus has followed in the footsteps of rival carriers and introduced 36-month deals.

The nation’s second-largest telco this month introduced the new plans to tie in with the launch of the new iPhone 11 devices, allowing customers to spread the cost of paying off their device over a longer period.

Telstra and Vodafone already offer 36-month contracts.

While their iPhone 11 plans start at $79 per month, the telco’s head of product management Shawn Van Graan said the three-year contract terms made it an easier way for customers to afford the latest phones.

“We wanted to give flexible choice, we have had 24-month payment terms for a long time but we based on customer feedback we believe there was a need for a payment option of 36 months,” he said.

“It would allow the monthly price for consumers to be affordable for those high-end devices.”

The cheapest telcos worth trying

Parents hijacking school phone bans

Apple’s iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max smartphones are expensive. But telcos have come up with a plan to make the phones more accessible. Picture: Getty Images

Apple’s iPhone 11 Max is set to become Australia’s most expensive smartphone at $2499.

However, the new iPhone 11 is missing many important elements customers are chasing, including the new mobile tech developments, ranging from in-screen fingerprint scanners to 5G connections.

Telco comparison website WhistleOut’s spokesman Kenny McGilvary said 36-month plans could be more cost-effective for some customers.

“Paying off a phone over 36 months lowers your monthly outlay, helping your cash flows and makes it a bit easier to get the phone you want,” he said.

“The trade-offs are flexibility and being tied to the same provider and phone for a long time. “If you want to change provider at some point during the 36-month period then you’ll have to pay off the remaining cost of the phone.”

Vodafone’s chief commercial officer Ben McIntosh said they started offering 36-month plans two years ago to make it more affordable for customers to afford the latest handsets.

Vodafone and Optus both offer customers 36-month plans. Now Optus is getting on board.

MORE NEWS:

Aussies under threat amid fears of oil war

How Meghan can lift her royal image in Africa

Rugby World Cup sparks TV scrum

Your ultimate school holidays movie guide

Glamorous WAGs of the Rugby World Cup

“On any phone we have, you can do 12, 24 or 36-month payment options which is interest free, no fees, no charges,” he said.

“It makes premium technology affordable for a lot of people, phones are getting up to the $2000 price point.”

Mr McIntosh said 36-month device plans were the most popular for their customers — more than 60 per cent sign up to these deals.

Vodafone allows customers to trade in their second-hand devices if it’s in good working order in exchange for credit towards their next Vodafone phone bill.

Optus offers customers a credit of $750 on their next bill when they trade in an eligible device in good working order.

Telstra also rolled out 36-month plans in June this year.

It previously offered 36-month plans on some small business deals.

[e-mail]

@sophieelsworth