Is it safe to buy imported phones?

Buying a phone outright has undeniable advantages. Though you'll need the money upfront, you won't be committed to any long term monthly payments to any of the telcos, and you are free to choose the best deal from a selection of plans, not just the deal that has been pre-chosen for the phone that you want.

Even though you can't buy the PureView 808 locally, you could always buy it online.
(Credit: Nokia)

Many Australians have taken to purchasing handsets outright from online vendors sourcing stock from overseas. This stock comes from all over the world, and though it is usually designed for use with an international telco, compatible stock will work in Australia. On top of owning a phone with no commitments, buying overseas stocks via a parallel importer often means you can choose phones which may not be available locally, at all or until later in the year. You earn the bragging rights of being the first in the country to own the latest and greatest new smartphone or tablet. But there are a number of things you need to consider before buying.

Warranty

As exciting as it is to shop for new tech, it is important you know what your rights are if something goes wrong. You might save a bunch of money buying through an auction site, like eBay, but you may also be without recourse if the phone turns out to be a lemon. If you're buying through an online store, be aware that international stock is nearly always sold without a manufacturer's warranty. Nokia, for example, has put together this information page for people considering a parallel import item, which clearly states "Any Nokia phone bought from retailers overseas or who are not authorised Nokia resellers will not be covered by Nokia's warranty".

Just because you will go without a manufacturer's warranty doesn't mean you'll be left out in the cold with a broken phone, though. The better online vendors offer local warranties, but these are not manufacturer's warranties. MobiCity is one such online phone store, which uses a third-party warranty service called Australian Warranty Services. We asked MobiCity about how it handles claims on faulty handsets and we were told that it will offer to replace stock that they can't repair quickly.

"We service about 20 to 30 claims and replace about five to 10 handsets with brand new ones, each day," said Alastair Eldred for MobiCity. He acknowledged that this is higher than the industry average for a company of MobiCity's size, but said that the company believes this is the best way to service its customers.

Finding a store that deals quickly and effectively with faulty products should be at the top of your list of priorities, but it can also be the trickiest part of buying a new phone.

Who ya gonna call?

The most difficult part of this equation is deciding who you are going to trust with your hard-earned money. Choosing a trustworthy online store for unlocked phones is no different to the problems you'll face with any online shopping. One with a decent warranty policy is a good start, but do your research carefully. Read user reviews on unbiased forums like Whirlpool, discover whether the store has an eBay alias and read any reviews you find there. We'd suggest you start by reading our feature on shopping safely online, as all the information listed will pertain to shopping online for phones, as well.

Online store-fronts are still a relatively new concept, but there are a couple of stores that have already garnered quite a following. MobiCity is one such store for smartphones and tablets. MobiCity's parent company is based in Hong Kong, but it has offices in Australia with about 40 local staff. The stock it sells is sourced from around the world, but it offers local support and a 12-month warranty. Electronics store Kogan offers a similar warranty and complements Kogan branded electronics with smartphones and tablets from companies like Apple and Samsung, with its stock sourced from overseas, as well. Expansys is a third online electronics store that has been doing business for several years and has a good reputation in this category.

There are dozens more, and we'd love to hear about your experiences with them. If you've bought a phone online, leave us a comment below and tell us about your experience.

Will your phone work in Australia?

Reputable online stores will only sell stock that is compatible with Australian networks, but there are important differences between the networks that you need to be aware of, before committing to a purchase. A phone that is compatible with the Optus network may not work well on the Telstra network, and vice versa.

Here is a table showing all the Aussie networks and corresponding radio frequencies that they operate on. Remember, 2G primarily relates to talking and text, while 3G and 4G refers to internet data. You'll notice that the same frequencies are used for 2G, 3G and 4G coverage. To differentiate, look for the type of network these frequencies operate on, too. GSM is 2G, UMTS or WCDMA is 3G and LTE is 4G.

Network 2G (GSM) frequencies 3G/4G (UMTS/WCDMA/LTE) frequencies
Optus
(Amaysim, TPG, Woolworths, Telechoice, Virgin)
900MHz
1800MHz
900MHz (UMTS/WCDMA)
2100MHz (UMTS/WCDMA)
Vodafone
(Crazy John's, Red Bull, GoTalk)
900MHz
1800MHz
850MHz (UMTS/WCDMA)
2100MHz (UMTS/WCDMA)
Telstra 900MHz
1800MHz
850MHz (UMTS/WCDMA)
1800MHz (4G/LTE)

This table isn't entirely complete; for example, Telstra has patches of 900MHz 3G coverage and Optus is building an 1800Mhz 4G network. But it does show the best frequencies for each network, as a guide for when you're buying a new phone.

Broadly speaking, if a phone uses compatible network radios to the frequencies listed above, then it will work on that network in Australia; though there is a chance you may not get the same performance on that network, that you would with a phone purchased through the network. A representative for HTC in Australia told us that "HTC encourages Australian and New Zealand customers to purchase HTC devices that have been tested and approved for use on Australian and New Zealand mobile networks", warning that phones bought overseas will not be optimised for use on local networks and may not have the same features as local stock. These optimisations may include fine network tuning in the phone's firmware, to best respond to the specific frequencies of the network infrastructure.

Also, make doubly sure that the phone is network unlocked. If a phone is locked to a specific carrier network, only the original owner can request it to be unlocked. If you buy a phone second-hand through eBay or similar, and discover the phone is locked when you receive it, you are going to have a very hard time unlocking it before you can use it.

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Latest comments (Add your comment)

So can you tell us what online stores we should buy from?
Posted by HoneyR
Reply
I bought a mobile phone from Kogan a few weeks ago and still don't have a functioning phone. It's not in English.

The opening screen is only in Asian characters. The instruction manual is in Italian.

It was a week before Kogan customer service acknowledge receipt of my email with concerns. They said they'd forward it to the appropriate group. It's been a week since then and I still don't have a working phone or know what to do about this.
Posted by meoncnet
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this might be irrevelant to the above however you also need to be aware if the company you buy from is also reputable.
it works 50/50 both ways I guess :s
Posted by gp2
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Been pondering this a bit, wrt getting the G Nexus from Kogan, super great price and just continueing to use my current Telstra plan (as the price and size work for me).
the G Nexus is available on Telstra, but on a higher plan etc.

I thought "buy the phone outright, run on a cheaper plan, save in the long run". But after i crunched the numbers for a comparison over the 24 months, i was only 80 bucks ahead by buying it outright.

The Telco subsidy is signficant. Yes i would be locked in... but i have pre invested, which is the same as locked in.
Okay, I haven't factored in any resale of the device, but the way things move these days... who knows?

So my questions now, is the $80 saved, worth an extra years warranty from Telstra (kogan gives 1 year)... hmm

For phones that you can not buy from a telco, this works, and after hearing of the prices of US plans, if you can find a cheap plan with a BYO phone, then you will save the monies in a few months.
Posted by Im Batman
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Well look at it this way, you can root the phone and actually play around with it and it doesn't effect the warranty with Kogan. And you can buy a 3 year warranty for $69.
Posted by Will1505
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Also all telstra phones on plans are not locked (except for the iphone). Vodafone is the only carrier that locks all of their phones.
Posted by Will1505
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Hi Joseph, nice detailed post which should help cut out some of the confusion for many when buying a phone. I would just like to point out a few things though:

1) It is UMTS not UTMS (Universal Mobile Telecommunications System)

2) "for example, Telstra has patches of 900MHz 3G coverage" - Telstra do not have ANY 3G 900 coverage at all. 3G 850 is ALL you need when buying - yes all this talk about 3G 2100 on Telstra but it is all infill and not an actual network rollout. So for Telstra, as long as you have 3G 'UMTS' 850 support, you're good to go

3) To add further confusion, Vodafone use 3G 850, 3G 900 AND 3G 2100. Their coverage checker at www.vodafone.com.au/coveragechecker highlights what frequencies are used where. A phone that supports all of those bands is best, but if you cannot get one, a general rule of thumb is to buy a 3G 850/2100 handset if you primarily use a Vodafone service in metro, or a 3G 900/2100 handset if you primarily use it elsewhere

4) 99% positive Telstra have ripped out GSM1800 in place for LTE1800. GSM1800 is only used here as extra capacity which as time passes and people move onto 3G/LTE, it won't be needed (obviously)

And for everyone else playing at home: It's always best to buy a 3G compatible phone ESPECIALLY if you're on Telstra. Telstra's 2G/GSM network is actually smaller than Optus' GSM network, and has only about 1/4th of the coverage NextG provides. Optus' 3G network when using a 3G 900/2100 handset also covers more than their GSM, since nobody has been expanding GSM for a long time.

Networks are changing all the time - hell now with Optus' Vividwireless acquisition they will eventually have LTE on 2300. Fun, err, confusing times ahead :/
Posted by fusion
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I'm a software developer. I need to have the latest phones and unlocked. I purchased the HTC HD2 from Expansys in 2009 - it is still going strong and allowed me to develop for both Windows 6.5 and various Android versions. Late last year I also purchase the Samsung Galaxy Nexus from Clove Technologies in the UK.
Both phones worked perfectly and still do so. I can recommend both of these retailers. For their prompt and reliable service.
Posted by NickT2
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I thought telstra's 2g was still 850mhz too.

I got a galaxy note from kogan about a month ago, $489 (actually gone up $50 since i got it) and its been perfect. Mild heart attack trying to change the language initially though). Hell you can get the Motorola razr for under $350 now, its incredible.

I haven't got a problem with direct importing, especially if its going to save me nearly 40%. Camera's are also a great thing to direct import. Kogan and DWI are both really great outlets and fast. I ordered my Note from kogan and a memory card from sydney on a Thursday. The Note came from China and arrived on the monday, the memory card came on the Tuesday.

One thing you will find is that prices fluctuate on a daily basis. For example i got my Note at $489 five weeks ago, but is now $539. On the other hand, i've been monitoring the Nikon D3200, two weeks ago it was $729, last Friday it was $609 and now it is $619. Warranties are also fairly reasonable.

I can see Teds closing down if they don't do something drastic soon. Why on earth would i go to Teds and pay $1499 for a Nikon D7000 when i can go to DWI and get the same camera for $899?
Posted by Will1505
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I also went out and got the Note however I decided that I would buy it on contract from Telstra.

My plan was to upgrade in 12 months when the new phones come out so i didn't want to sign up on a 24month contract. However i was informed by one of the staff members at Telstra that after 12months i could just 'buy out' my contract for $350 and i get to keep the phone.

So i get the 12 months of service i wanted, plus the phone for $350. Win win :)
Posted by Dunners
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