Business Connect Hardware Pool Terms and Conditions

Last updated: 06 September 2018

1.  These specific terms and conditions apply in addition to the Business Terms and Conditions and any other specific terms and conditions that may be applicable to a Plan under your Account (together, the Applicable Terms and Conditions).

2.  These specific terms and conditions will prevail in the case of inconsistency with the Applicable Terms and Conditions.

3.  Unless stated otherwise, capitalised terms have the same meaning given to them in the Applicable Terms and Conditions.

4.  If you are eligible under clause 6, we may provide you with a credit for hardware instead of upfront Mobile Phones (excluding accessories) (Hardware Pool). You can apply for a Hardware Pool via one of our authorised dealers or our business sales team. You can use the Hardware Pool to buy Mobile Phones (but not accessories) from us during the Term (defined at clause 5 below).

5.  Your Hardware Pool will be valid for either 24 months or 36 months (Term) from the date it is first made available to you. You will select the Term when you complete your Application Form.

6.  You will be eligible for a Hardware Pool if you:

           (a)  are a new or existing Customer;

           (b)  buy, or already have:

                 (i)  a Business Connect Plan with at least 10 Talk & Text Connections Flexi (zero term); or

                 (ii) at least 10 Business Choice Plans, including any combination of them.

 7.  When you apply for a Hardware Pool, we will ask you to confirm a minimum number of either:

           (a) Talk & Text Connections Flexi (zero term) on your Business Connect Plan; or

           (b) Business Choice Plans,

that you commit to having during the Term (Committed Connections). The more Committed Connections you commit to, the greater the Hardware Pool you will qualify for, and we reserve the right to determine the value of the Hardware Pool you qualify for.

 8.  Our authorised dealer or our business sales team will notify you of the maximum Hardware Pool you qualify for (which may not be less than $5,000) and then you will select the value of your Hardware Pool in your Application Form. Data Connections or data allocations you may have are not relevant to the potential value of your Hardware Pool and your Hardware Pool will not increase if you add new Connections or Plans during the Term.

 9.  The monthly Charges you will pay for your Hardware Pool will be the Hardware Pool value divided by the number of months in the Term you select. These monthly Charges will be payable during the entire Term even if you have used the entire Hardware Pool before the end of the Term. The value of the Hardware Pool does not attract GST and you will only pay GST in relation to the Mobile Phones you order (see clause 10). Please contact our authorised dealer or the business sales team for any questions relating to Charges.

10.  The GST payable in relation to each Mobile Phone ordered in accordance with these terms and conditions will be applied when you receive that Mobile Phone. However, the monthly Charges will remain the same and will incorporate monthly instalments of the GST payable by you for any Mobile Phones ordered.

11.  The amount deducted from your Hardware Pool when you order a Mobile Phone will be the recommended retail price (or, if applicable, the promotional price offered by 2degrees) of that Mobile Phone at the date of purchase.

12.  Subject to clause 13, you can order Mobile Phones by contacting our authorised dealer or the business sales team. We may provide you with monthly reporting in relation to your use of your Hardware Pool upon request and in a form determined in 2degrees’ sole discretion.

13.  You may not charge Mobile Phones to your Hardware Pool, and orders of Mobile Phones may be denied by 2degrees, if payment of any Charge is overdue.

14.  Any credit balance remaining in your Hardware Pool will expire immediately at the end of the Term, or on the date you terminate your Business Connect Plan, all your Business Choice Plans or your Account (if earlier). Any amount owing by you to us on termination will remain due and owing and may not be set-off against the Hardware Pool.

15.  Your Hardware Pool may not be converted or exchanged for cash or otherwise be applied as a credit against your Account for any amount owing by you to us.

16.  In accordance with the Applicable Terms and Conditions, if:

      (a)  you or we terminate your Account; or

      (b)  your total number of Talk & Text Connections Flexi (zero term) drops below your Committed Connections during the Term; or

      (c)  your total number of Business Choice Plans drops below your Committed Connections during the Term,

then

      (d)  in your next invoice you will be required to pay an early termination charge, being the portion of the Hardware Pool monthly Charge applicable to those terminated Committed Connections multiplied by the remaining months in the Term (rounded up to the nearest whole number of calendar months); and

      (e)  your remaining monthly Charges (if any) will be reduced in proportion to the early termination charge.

A transfer from a Business Connect Plan to multiple Business Choice Plans (or vice versa) may still result in early termination charges being incurred under this clause. The following examples show how early termination charges will be calculated under this clause (please note the figures in the examples are explanatory only and do not represent a quote):

Early termination worked example 1 (Business Connect):

A Customer takes a Business Connect Plan with 20 Talk and Text Connect Flexi plans (zero term). The Customer wants a Hardware Pool of $7,500 for 36 months and commits to maintaining at least 15 Talk and Text Connect Flexi plans for the duration of the Hardware Pool term. This means the Hardware Pool allocation is $500 per connection and has a monthly charge of $208.33 ($7,500 / 36).

In the 30th month of the Hardware Pool term, the Customer changes 10 of their Talk and Text Connect Flexi plans to Data Connect Flexi plans. They now have only 10 Talk and Text Connect Flexi plans, meaning that they have dropped below their 15 Committed Connections threshold. As a result:

      (a)  an early termination charge will be incurred by the Customer for the number of Committed Connections the Customer has dropped (5), calculated by the formula (monthly Hardware Pool Charge / total Committed Connections) x (amount of Connections below Committed Connections) x (months remaining in Term, rounded up), in this case:

($208.33 divided by 15 Connections) x 5 Connections x 6 months = $416.66

     (b)  the Customer’s monthly Charge for the remaining months will be reduced to $138.89 (being the monthly Charge that would have applied if the Customer had only had 10 Committed Connections and a $5,000 Hardware Pool, e.g. $5000 / 36 = $138.89).

Early termination worked example 2 (Business Choice):

A Customer with 17 Business Choice Plans took a $25,500 Hardware Pool and committed to maintaining 17 Plans as its Committed Connections on a 24-month Term. Therefore, the monthly Charge was $1062.50 ($25,500 / 24).

When the Customer disconnected 15 of its Business Choice Plans in the 10th month (retaining just 2 Business Choice Plans):

    (a)  an early termination charge will be incurred by the Customer for the number of Committed Connections the Customer has terminated (15), calculated by the formula (monthly Hardware Pool Charge / total Committed Connections) x (amount of Connections below Committed Connections) x (months remaining in Term, rounded up), in this case:

($1062.50 divided by 17 Connections) x 15 Connections x 15 months = $14,062.50

    (b)  the Customer’s monthly Charge for the remaining months was reduced to $125.00 (being the monthly Charge that would have applied if the Customer had only had 2 Committed Connections and a $3,000 Hardware Pool, e.g. $3000 / 24 = $125.00).