Optus waives modem fees for customers switching to 5G home broadband, but there's a pricey catch

Anula Wiwatowska - Offsite Editorial Lead

Last updated 12 January 2022

Current Optus internet customers can swap over to the provider’s 5G home broadband and get out of paying outstanding modem fees on the old plan, but there is no swap back guarantee if it doesn’t work out.

All of Optus’ internet plans are contract-free, but the cost of the included modem is paid off over a 36-month period. Customers that leave before the end of the term are liable to pay the remaining cost of the device, which can be up to $504 depending on the plan. That is a steep price to pay to exit a contract.

However, Optus customers now looking to switch over to 5G home internet can do so without needing to pay out any remaining modem fees, or return the device to the provider.

While this does potentially give customers a way out of the lengthy agreement, signing up to the 5G plan simply starts the clock over again. Like with the providers other internet options, customers get the 5G modem valued at $576 for free across a 36-month period, but if cancelled early the remaining fees still need to be paid back.

Despite offering the switch to 5G for free, an Optus spokesperson told WhistleOut that there is no guarantee that customers switching to 5G will be able to swap back to their old plan without needing to pay out the 5G modem fee. The spokesperson said that “this is dependent on the individual customer situation and what issues the customer is facing with their 5G Home service.”

Optus is the only major provider offering 5G home broadband that doesn’t have a return policy on its modem. Both Vodafone and Telstra will let customers return the modem within 30 days of cancellation, instead of paying exit prices. The exception to Optus’ rule is if the connection is consistently unable to achieve speeds of 50Mbps. According to the 50Mbps Satisfaction Guarantee, if Optus can’t help the customer improve their speeds to above this threshold they may be able to withdraw from the service at no additional cost.

Major telcos have had contract-free internet plans for a while, but for the most part, customers are still on the hook to pay out the cost of the modem if they leave within a 24 or 36-month period. This makes switching away from one of the Big Three telcos that little bit harder, but the market is starting to shift to allow customers to return the modem rather than pay a big exit fee.

In addition to Vodafone and Telstra’s 5G modem returns, Telstra’s new Upfront NBN plans also allow customers cancelling within the initial 24 months to return the modem for free.

Anula Wiwatowska

Offsite Editorial Lead | Instagram

Anula is the Off-Site Editorial Lead for WhistleOut Australia, and an award winning tech journalist. She has been writing about the Australian telco industry, and consumer technology for over five years, and has been known to tell her Uber driver which phone they should upgrade to next.

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