TIO Annual Report 2003/04

Case Studies

SIM Card Not Transferable to Other Handsets

The Complaint:

Although happy with his existing handset, the complainant signed up to a contract with a new provider because he liked the particular plan associated with the offer. His wish was to use the SIM card from the new contract in his existing handset. The complainant claimed that the salesman had confirmed that this would be possible. The complainant cancelled the contract with his old provider, incurring a $400 termination fee as a result. Upon placing the new SIM card in his old handset, the complainant found that the service would not work. He tried the SIM card unsuccessfully in two other handsets and then telephoned his new provider. The provider advised him that his new SIM would not work in his old phone as it used a more advanced technology than his old handset allowed. The complainant asked if a compatible SIM using a lesser technology could be provided on the same plan and was advised that this would not be possible. He therefore asked for the contract to be cancelled and for the company to reimburse him for the termination fee he had incurred with his old provider, a request that was refused.

TIO Response:

The Member advised the TIO that the service supplied was consistent with the signed agreement. The Member said it had made the applicant aware of termination fees from his old provider if he cancelled his old contract early. The TIO confirmed that this was clearly outlined on the signed contract. The Member also provided customer care notes showing that the complainant had only asked whether the SIM was compatible with other handsets several days after the contract was signed. And the company provided a statement from the salesman denying that he had told the complainant that the new SIM card could be used in older model handsets. The Member advised that as a goodwill gesture it was willing to release the complainant from the contract without penalty and that he would be reimbursed for monies already paid. However, the company advised that it would not cover the costs associated with the termination of the contract with the complainant's previous carrier.

The Outcome:

The TIO concluded that, based on the evidence provided, the resolution proposed by the Member was a fair one. This was because there was no evidence that the Member had advised the complainant that the SIM was transferable prior to the complainant agreeing to the contract. With rapidly changing and alternative technologies now available to consumers it is of the utmost importance that options for transferring SIM cards and handsets are thoroughly explored prior to agreements being signed. Not all SIM cards are transferable and not all handsets can be used on different mobile networks.