Telstra has rolled out two-year warranties for all mobile handsets on 24-month contracts except Apple's iPhones following discussions with the Australian Competition and Consumer Commission (ACCC).
"Telstra has decided to do what's right and fair for consumers, and has been negotiating with manufacturers to bring in warranty periods that last for the length of a consumer's contract," ACCC chairman Graeme Samuel said today in a statement.
Telstra's already had success with some manufacturers, providing 24-month warranties for HTC, BlackBerry and ZTE phones.
"It is important for consumers and suppliers to realise that the Trade Practices Act implies certain statutory rights into consumer contracts. Just because the manufacturer's warranty period is up, it does not mean that consumers can be hung out to dry if they are left with a faulty product and ongoing service contract."
The primary obligation to provide remedies for problems rested with Telstra, according to the commission, and not the phone manufacturers.
The extension of Telstra's warranties followed an ACCC investigation last year, which saw Vodafone provide an undertaking that it would provide a 24-month warranty for any phone sold on a 24-month contract.
The commission is still in discussions with Optus seeking a similar warranty policy.
The ACCC said that although most manufacturers were honouring warranties, it still had concerns around warranty issues with Apple's iPhone.