Following a discussion with regulatory body Australian Competition and Consumer Commission (ACCC), Telstra is offering 24-month warranties for mobile handsets supplied with service contracts of the same length.
However, the warranty deal does not include the Apple iPhone, which will continue to have a 12-month warranty.
ACCC chairman, Graeme Samuel, said in a statement that it is a good outcome for consumers and Telstra should continue its negotiation process.
“The primary obligation to provide remedies rests on Telstra and not the mobile phone manufacturers," Samuel said. "It is reasonable for consumers to expect that any phone they buy will last for the length of the service contract they enter into. In the EU, most consumer goods sold come with a minimum 24 month warranty.
"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 decision follows an investigation last year which resulted in the ACCC accepting a court enforceable undertaking from Vodafone Hutchinson Australia (VHA) that the company will supply a 24-month express warranty to any phone (excluding Apple) sold on a 24-month contract.
In January, the industry watchdog indicated it would enforce lengthened replacement and repair warranties for mobile phones to better suit contract lengths.
The ACCC is now in talks with Optus to offer a similar policy.