macuser: To get equivalent data and call time to the freedom $39 plan, but on a 24 month plan if you're an existing customer, you need to move to the $49 plan, which essentially pays back the subsidy back over the term of the contract ($10 per month)

When I signed up to the plan the 2 degrees staff member said that if you sign up to the $39 24 month plan, you will always remain on the most current $39 plan.

SaltyNZ:

macuser: To get equivalent data and call time to the freedom $39 plan, but on a 24 month plan if you're an existing customer, you need to move to the $49 plan, which essentially pays back the subsidy back over the term of the contract ($10 per month)

When I signed up to the plan the 2 degrees staff member said that if you sign up to the $39 24 month plan, you will always remain on the most current $39 plan.

Yes and no. If the plan you are on is updated, then you get the benefit. But that is a different plan -- you can choose one or the other -- which allows you to trade a handset subsidy for more monthly stuff if you already have a phone.

macuser: 

I traded 24 months of my money for a handset subsidy

SaltyNZ:

macuser: 

I traded 24 months of my money for a handset subsidy

Yes, that's what a handset subsidy is. :-)

macuser: 

This is a bit backwards..

SaltyNZ:

macuser: 

This is a bit backwards..

Yes, I see where you are coming from. The reason it is done this way, as I understand it, is that the handset subsidy comes out of our cash balance, but the contract you have signed to say you will stay for 24 months does not count as an asset to balance it, so from a Big Business point of view we just gave you a whole bunch of money and made a paper loss (which gets paid back eventually, but it can't be shown that way on the books). If you choose an open term, and we don't give you any money, we can give you more stuff to encourage you to stay with us.

In a nutshell, we would really prefer not to be loaning people our cash, so we give you an incentive not to ask us.

macuser:

2 Degrees can also guarantee its income for the next 24 months.

SaltyNZ:

macuser:

2 Degrees can also guarantee its income for the next 24 months.

Yes, which is why we can offer a handset subsidy. So we give you the choice: get a handset subsidy in return for signing up for 24 months, or get more network value and feel free not to sign up for 24 months. Getting a handset subsidy and more network value can be done too, if you like: sign up to a more expensive plan, on a 24 month term.

macuser:  which essentially pays back the subsidy if you're on a $39 plan, over the term of the contract...

SaltyNZ:

macuser:  which essentially pays back the subsidy if you're on a $39 plan, over the term of the contract...

Exactly.