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Trapped in a Nexgen Contract?

How to Get Out, And Stop Renting Equipment You’ll Never Own

NEW OWNER. SAME CONTRACT. SAME EQUIPMENT TRAP.

In February 2026, Aussie Broadband acquired Nexgen for $50 million — inheriting 6,000 Australian small businesses locked into contracts averaging four to five years. If you’re one of them, your contract didn’t change when ownership did. You’re still paying for equipment you’ll never own, locked into terms you may not have fully understood when you signed. Here’s exactly how to get out.

Nexgen built its SME customer base on a model that many Australian small business owners didn’t fully understand until they were already locked in. The pitch was simple: a professional phone system, business internet, and all the features of a big-company communications setup, for a manageable monthly fee.

What the pitch often didn’t make clear: you were signing two separate agreements. One for the telecom services. One for the equipment. The equipment agreement — often financed through a third-party lease provider like Grenke — means you’re renting phones and hardware you’ll never actually own. And if you want to leave, you may owe the full remaining balance of the lease in one hit.

Now, with Aussie Broadband having acquired Nexgen in February 2026, those 6,000 SME customers are facing a new question: does the acquisition change anything about my contract? The short answer: no. Your obligations under the existing service and equipment agreements remain. But your rights under Australian Consumer Law remain too. And they’re stronger than most business owners realise.

This guide covers everything you need to know: what you actually signed, what it’s costing you, and the exact steps to take if you want out.

$50M
Aussie Broadband paid to acquire Nexgen in February 2026		6,000
Australian SME customers inherited in the Nexgen acquisition		4–5 yr
saverage Nexgen contract length inherited by Aussie Broadband		2x–3x
typical equipment rental total cost vs outright purchase price over lease term

What you actually signed — and why it matters

Most Nexgen customers signed two separate agreements, not one. Understanding the difference is the first step to getting out.

Agreement 1: The telecom services contract

This covers your internet connection, phone lines, call plans, and any hosted services. It typically runs for 24–48 months and includes an early termination clause requiring 30 days’ written notice plus any remaining contracted monthly fees. This is the agreement most people think of when they think of their ‘Nexgen contract.’

Agreement 2: The equipment rental or lease agreement

This is the agreement most people don’t fully register until they try to leave. It covers the physical hardware: desk phones, handsets, routers, and any on-site equipment. This agreement is typically financed through a third-party leasing company, historically Grenke, and runs independently of the services contract.

The exit terms are punishing: early termination requires paying the fixed monthly rental multiplied by every remaining month in the term, plus any outstanding fees and arrears. For a 48-month agreement with two years remaining, that can mean a payout of $5,000–$15,000 depending on the monthly rental rate — for equipment that was never yours to begin with.

💡 THE KEY INSIGHTCancelling your Nexgen services contract does NOT automatically cancel your equipment lease. These are two separate legal agreements with two separate exit processes. Businesses that cancel the service and assume they’re done often continue receiving bills from the equipment financier for years afterward.

The pain points we hear from businesses stuck in Nexgen contracts

💸  Paying for equipment that was never yours
The monthly rental fee for phones and hardware adds up to two or three times the outright purchase price over a 48-month term. At the end of the lease, you hand the equipment back — and have nothing to show for years of payments. Or you can buy it at ‘market value,’ which is often set at an inflated residual.
🚩  Red flag: You’re paying $150–$400/month for hardware worth $1,500–$3,000 outright
🔄  Auto-renewal locking you in again
Nexgen’s service contracts include auto-renewal clauses. If you don’t actively notify them before the renewal window, your contract rolls over for another term at the same (or higher) rate. Many customers discover they’ve been auto-renewed only when they try to leave.
🚩  Red flag: You can’t remember when your contract started or when the renewal window opened
💳  Billing after switching providers
A common complaint: businesses switch to a new provider, assume they’re done with Nexgen, and continue receiving invoices for months. This happens because porting phone numbers doesn’t automatically cancel the services contract, and the equipment lease runs independently regardless.
🚩  Red flag: You switched providers months ago but are still being billed by Nexgen or Grenke
🤷  Sold the business, still getting billed
When a business is sold, Nexgen contracts don’t automatically transfer to the new owner. Without a formal novation agreement — signed by Nexgen, the equipment financier, the old owner, and the new owner — the original signatory remains liable. Former owners have been pursued for payments long after selling.
🚩  Red flag: You sold your business but are still receiving invoices in your name
🔇  The acquisition uncertainty
Aussie Broadband’s acquisition of Nexgen in February 2026 has left many customers uncertain about who they’re actually contracted with, who to contact for support, and whether the acquisition changes their rights. The acquisition announcement confirmed Nexgen will ‘continue to operate as a standalone entity’ — which means your existing contract obligations remain unchanged.
🚩  Red flag: You’re not sure if your contract is now with Nexgen or Aussie Broadband or both

How to get out of your Nexgen contract: step by step

Exiting a Nexgen contract requires working through both agreements separately and in the right order. Here’s exactly what to do:

Step 1:  Get your documents

Request copies of both agreements in writing: your services contract and your equipment rental or lease agreement. Email billing@nexgen.com.au or call 1300 02 04 02. Note the start date, term length, auto-renewal clause, and early termination terms in each document. If you can’t locate your equipment agreement, it may be directly with Grenke — check your bank statements for the debit source.

Step 2:  Calculate your exit cost

Contact Nexgen’s billing team and request a written payout figure for both agreements. For the services contract: remaining months x monthly fee, plus any applicable fees. For the equipment lease: remaining months x rental amount, plus residual value and any arrears. Get both figures in writing before making any decisions or stopping any payments.

Step 3:  Check if Nexgen or Aussie Broadband has changed your terms

Under Australian Consumer Law, a change of ownership does not allow a provider to unilaterally alter contract terms to your detriment without notice and consent. If you’ve received communications from Nexgen or Aussie Broadband notifying you of changes to your service, pricing, or terms since the acquisition, these changes may give you the right to exit without penalty. Review any post-acquisition communications carefully.

Step 4:  Check for service failures and misrepresentation

Under the Telecommunications Consumer Protections (TCP) Code and Australian Consumer Law, you have grounds to exit without full penalty if: Nexgen failed to deliver the service quality promised at point of sale; you were misled about the nature of the equipment agreement at sign-up; fees were charged that were not disclosed in your contract; or the service has materially degraded since you signed. Document any service failures in writing.

Step 5:  Escalate to the TIO if Nexgen won’t negotiate

The Telecommunications Industry Ombudsman is a free, independent dispute resolution service for small businesses. If Nexgen or Aussie Broadband won’t negotiate a fair exit, file a complaint before paying any exit fees. Call 1800 062 058 or lodge at tio.com.au. The TIO has authority to investigate billing disputes, misleading sales conduct, and service failures — and its involvement often motivates providers to negotiate more reasonably.

Step 6:  Contact the ACCC if you were misled

If the original sales process involved misrepresentation — verbal promises that weren’t reflected in the contract, pressure tactics, or failure to disclose the equipment lease as a separate agreement — you can lodge a report with the ACCC at accc.gov.au. The ACCC has authority under the Australian Consumer Law to investigate misleading and deceptive conduct by telecommunications providers.

Step 7:  Port your numbers before you cancel

Your existing Australian phone numbers — local, 1300, 1800 — can be ported to a new provider before you formally cancel Nexgen services. Your new provider manages this process. Nexgen will continue billing until all numbers have ported and 30 days’ notice has been served — so act early and get your new provider to initiate porting as soon as possible.

Step 8:  Handle the equipment lease separately

Do not assume cancelling your services contract cancels your equipment lease. Contact the equipment financier directly (Grenke or the entity debiting your account) and request your options: payout figure, novation to a new business owner, or lease extension/termination at end of term. Get everything in writing. If you’re selling your business, Nexgen can assist with novating the equipment contract to the new owner — but this requires signatures from all parties.

⚠  CRITICAL WARNINGNever stop direct debit payments without first obtaining written confirmation of your exit from both Nexgen and the equipment financier. Unauthorised cancellation of payments can result in default notices, debt collection action, and damage to your business credit file — even if you believe you have grounds to exit.

What the Aussie Broadband acquisition means for Nexgen customers

On 23 February 2026, Aussie Broadband completed the acquisition of Nexgen for $50 million. Here’s what the acquisition does and doesn’t change for existing customers:

  • Your contract obligations remain — the acquisition does not release you from your existing service or equipment agreements
  • Nexgen continues to operate as a standalone entity — Aussie Broadband confirmed ‘limited’ integration, meaning Nexgen’s systems, brand, and operations continue separately
  • Support contacts remain the same — billing@nexgen.com.au and 1300 02 04 02 remain the active contact points
  • The acquisition may create a review window — if Nexgen or Aussie Broadband notifies you of any changes to your terms, pricing, or service following the acquisition, review those changes carefully with a legal adviser as they may trigger exit rights under the TCP Code
  • New customers should be aware — Nexgen’s customer contracts are now an Aussie Broadband portfolio asset; the same equipment lease model applies to new sign-ups

What to look for in your next business telecom provider

Once you’re free, make sure you don’t walk into the same trap with a different name on the invoice. The right provider should offer:

  • No equipment lease or rental trap — a cloud-hosted phone system means there’s no hardware to rent
  • Transparent all-inclusive pricing — one monthly bill, no surprise line items or subsequent installation fees
  • Short-term or month-to-month flexibility — not 36–60 month lock-ins
  • Number portability included — your existing phone numbers transfer at no extra charge
  • Australian-based support — a local team who picks up the phone when you call
  • No auto-renewal without explicit notice — you should always know when your contract is due for renewal and have the option to renegotiate

Why Australian businesses switch to Broadconnect

Broadconnect is the opposite of the equipment rental model. Our Hosted Cloud Phone System runs entirely in the cloud — there’s no hardware to rent, no lease to sign, and no third-party financier sending you invoices for equipment you’ll never own.

  • Cloud-hosted phone system — everything runs in the cloud, nothing to lease or rent
  • All Australian phone numbers supported — local, 1300, 1800, mobile
  • Number porting managed end-to-end — we handle every interaction with your old provider
  • Microsoft Teams Phone integration — certified Direct Routing, genuine integration
  • 4G/5G backup internet — your phones stay live even if your primary connection drops
  • NSW Government-listed supplier — independently verified service standards
  • 100% Australian-based support — real people, not a ticketing system
Ready to stop renting and start owning your telecom?Talk to our team today. We’ll review your Nexgen contract, explain your exit options, and give you a transparent quote for what a proper cloud phone system actually costs.Call 1300 880 330  |  broadconnect.com.au

Frequently asked questions

Does the Aussie Broadband acquisition of Nexgen change my contract?

No. Your existing service and equipment agreements remain in force under Aussie Broadband’s ownership. Your obligations — and your rights — are unchanged. However, if Nexgen or Aussie Broadband notifies you of any changes to your terms, pricing, or services following the acquisition, those changes may trigger exit rights under the TCP Code. Review any post-acquisition communications carefully.

Can I cancel my Nexgen contract early?

Yes, but early termination fees apply. For the services contract, expect 30 days’ written notice plus any remaining contracted monthly fees. For the equipment lease, the exit cost equals remaining monthly payments multiplied by months remaining, plus residual value and arrears. Get written payout figures for both agreements before making any decisions.

What is Grenke and why is it billing me?

Grenke is a third-party equipment finance company that funds Nexgen’s equipment rental agreements. When you signed up for Nexgen’s phone system, the equipment was financed through Grenke, not Nexgen. This is why you may receive invoices from both Nexgen (for services) and Grenke (for equipment) — they are separate agreements with separate exit processes.

Can I take my phone numbers with me when I leave Nexgen?

Yes. Australian phone numbers — local, 1300, and 1800 — can be ported to a new provider. Your new provider manages the porting process on your behalf. Nexgen will continue billing until all numbers have ported and 30 days’ notice has been formally served. Broadconnect manages number porting end-to-end at no extra charge.

What is the TIO and how can it help me with Nexgen?

The Telecommunications Industry Ombudsman (TIO) is a free, independent dispute resolution service for residential and small business telecom customers in Australia. If Nexgen or Aussie Broadband won’t resolve a billing dispute or negotiate a fair exit, the TIO can investigate and mediate. Call 1800 062 058 or lodge at tio.com.au. File a complaint before paying any exit fees.

I sold my business but am still being billed by Nexgen. What do I do?

This is a known issue. Contact Nexgen’s billing team immediately (billing@nexgen.com.au or 1300 02 04 02) and request written confirmation of what’s required to formally transfer or terminate the contract. If the issue isn’t resolved, escalate to the TIO. Ensure any business sale agreement addressed the novation of telecom contracts — if it didn’t, seek legal advice on your obligations and options.

What’s the difference between ending the services contract and ending the equipment lease?

These are two completely separate agreements with separate exit processes. Ending the services contract (internet, phone lines, call plans) requires written notice to Nexgen and payment of applicable termination fees. Ending the equipment lease requires a separate process with the equipment financier (often Grenke), including payment of remaining lease installments or a negotiated settlement. Never assume one cancels the other.