Previous device fee when upgrading

[jd.vdm]

Hi. I was under the impression that if you upgrade in month 22, the previous contracts' device fee falls away? Let me give some more info. Took out contract (Tablet with 1GB @ R69+R230) in May 2013. Upgrade Feb 2015 to a Sim only 2GB (R99). Now I'm told I still have to pay the "Tablet Fee" until end May 2015 (Now paying R99+R230). Don't that device fee falls away when upgrading?

 

[Fiesta]

as far as i can remember it does fall away. i've never had to make 2 concurrent payments when i have upgraded before the expiry date of my contract.

 

[Ockie]

Hi. I was under the impression that if you upgrade in month 22, the previous contracts' device fee falls away? Let me give some more info. Took out contract (Tablet with 1GB @ R69+R230) in May 2013. Upgrade Feb 2015 to a Sim only 2GB (R99). Now I'm told I still have to pay the "Tablet Fee" until end May 2015 (Now paying R99+R230). Don't that device fee falls away when upgrading?

Why would it fall away? You agreed to pay that fee for 24 months to cover the cost of the device of your choice on your selected package.

On your upgrade quote it would also have shown you the amount that is left.

See below of a upgrade quote I did for one of my clients. It clearly shows what is left for you to pay and over how many months.

 

[jd.vdm]

I understand from a logical point of view that the device fee must be paid for 24 months. But what they also said that IF I took a new device, it then would have fallen away. If I new this, I would have never upgraded. Never have I seen two contracts overlap like that. On MTN when I upgrade on month 22 the new contract starts from that upgrade date and the remaining 2 months of the contract falls away. My new contract termination date even then shifts two months earlier.

 

[Fulcrum29]

I understand from a logical point of view that the device fee must be paid for 24 months. But what they also said that IF I took a new device, it then would have fallen away. If I new this, I would have never upgraded. Never have I seen two contracts overlap like that. On MTN when I upgrade on month 22 the new contract starts from that upgrade date and the remaining 2 months of the contract falls away. My new contract termination date even then shifts two months earlier.

Your contractual agreement is itemised, like itemised billing. The device you agreed to are by the CPA maximised to 24 months billing.

 

[Ockie]

I understand from a logical point of view that the device fee must be paid for 24 months. But what they also said that IF I took a new device, it then would have fallen away. If I new this, I would have never upgraded. Never have I seen two contracts overlap like that. On MTN when I upgrade on month 22 the new contract starts from that upgrade date and the remaining 2 months of the contract falls away. My new contract termination date even then shifts two months earlier.

Perhaps you are thinking of the monthly subs for your package. If you go to a lower package when you upgrade, you will pay the lower subscription for the lower package once upgrade is done, instead of paying the 3 months of the higher package subscription or how ever long you had left on your previous contract.

 

[geezer]

Why should it fall way? If you go and buy a TV on HP or credit, and you decide to buy a new one after 22 months from the same dealer, your last 2 payments are still due and also does not fall away. Why would it be any different with the handset subsidy? When you took out the contract you agreed to 24 payments to subsidise the phone.

 

[jd.vdm]

Just a quick question: So if your contract is due for renewal (>22 months) which say you are paying R399 per month for a Galaxy S4 on a Smart S and you upgrade to a Note 4 still on a Smart S which are advertised for R549/month, you will only pay R549 after 2 months.?For the first two months you will pay R549 + (R399 minus the Smart S contract fee). (Values just an example)

 

[Ockie]

Just a quick question: So if your contract is due for renewal (>22 months) which say you are paying R399 per month for a Galaxy S4 on a Smart S and you upgrade to a Note 4 still on a Smart S which are advertised for R549/month, you will only pay R549 after 2 months.?For the first two months you will pay R549 + (R399 minus the Smart S contract fee). (Values just an example)

No. You will pay R350.00 + R200.00 + R199.00 (smart s subs) untill the R200.00 for the R200.00 for the S4 falls away once the 24 payments are completed.

 

[Ockie]

Just a quick question: So if your contract is due for renewal (>22 months) which say you are paying R399 per month for a Galaxy S4 on a Smart S and you upgrade to a Note 4 still on a Smart S which are advertised for R549/month, you will only pay R549 after 2 months.?For the first two months you will pay R549 + (R399 minus the Smart S contract fee). (Values just an example)

No. You will pay R350.00 + R200.00 + R199.00 (smart s subs) untill the R200.00 for the R200.00 for the S4 falls away once the 24 payments are completed.

NB: I AM ASSUMING YOU INCLUDED THE R199.00 SUBS IN THE R549.00 AS YOU DID WITH THE R399.00

 

[jd.vdm]

Ok thanks Ockie. Luckily my normal voice contract is with MTN and when you upgrade it is like a new contract and all fees and contract terms of previous contract falls away. It is like taking out a new 24 month contract.

 

[Ockie]

Ok thanks Ockie. Luckily my normal voice contract is with MTN and when you upgrade it is like a new contract and all fees and contract terms of previous contract falls away. It is like taking out a new 24 month contract.

That sounds like bad business practice if you ask me, but if they are happy to right off oh lets say R1200.00 per lets say 5000 customers per month totalling R6 000 000.00 per month or R72 000 000.00 per year, then good luck to them. Sure their shareholders love it. :wtf:

Those figures were just rough estimates btw

 

[Enzo Matrix]

Each time i upgraded in the month 22 window, i didnt pay for the first device, i.e. it fell away

 

[Ockie]

Each time i upgraded in the month 22 window, i didnt pay for the first device, i.e. it fell away

PM me your number. I would like to investigate (rectify) the situation for you.