At this morning’s Vodafone announcement of new postpaid plans Ben McIntosh their Consumer Business Unit Director said they weren’t interested in plans with slippery interest or leasing fees.

Taking a shot at his competitors Optus and Telstra, who both offer leasing options to their consumer and business customers, McIntosh told media attendees that:

“We’re not going down the leasing path, which is the equivalent of paying off someone else’s mortgage and never getting to own the house,” said McIntosh. “We simply think it’s a waste of money and telcos shouldn’t be trying to turn mobile phone plans into something like the Australian property market, where for many ownership is a long-lost dream.

I’ve been dubious about the value of leasing a mobile phone. I wouldn’t do it myself or recommend anyone do it.

At the end of the lease the telcos take back leased phones which don’t get recycled, they get sold on the wholesale market for several hundred dollars.

What do you think?

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Anthony Klun

This is why I always purchase outright… If I can’t afford straight up cash, I use the credit card and pay that off with far lower interest and get to keep the phone. Most of the time I keep the box and accessories in good shape and resell it a year later to put the money towards the next one…


I think leasing has its moments. If my work did not give me a phone, I would lease one, use it for work, say 50% of the time, and then claim the lease costs on tax.

David Watt

Leasing is a rip, a scam. For it to be of value or benefit, it would need to be significantly cheaper than it is. But it makes no sense at current pricing. Far better off to spend $10 a month more, own the device after 2 years, sell it, pocket the cash, and still come out on top.


Many people like having the latest mobile each year so leasing suits them. May not be for everyone, but at least customers are given a choice with Telstra/Optus. Be a boring world if we all like the same things!

Yianni Soc

“I’ve been dubious about the value of leasing a mobile phone. I wouldn’t do it myself or recommend anyone do it.”
So I pay ~$20 /mo to have it for a year, then I pay $100s to swap it for a new one a year later. Then the telco sells it for market value.
Of course they love it, they make twice the amount than if you just buy or get it on contract. Plus don’t damage it. You’ll be in for more than you think.

I agree with McIntosh. I’d like to shake that man’s hand.


I’d do it if the monthly price was considerably less than normal – say, 40-50%. But currently i think they’re only $10 less? Why bother


That’s a pity. I am considering leasing my next phone.. I mean I probably won’t, but I’m at least looking at it.


While I don’t ‘rent’ a phone either I do know Telstra wouldn’t bother if it wasn’t popular. So this guy McIntosh is *I think* someone who has tunnel vision and not someone I would want working for my company.