Here’s How Australian Businesses Can Break Free

STOP RENTING EQUIPMENT YOU DON’T OWN

If you’re a small business locked into a Nexgen or similar telecom contract — and frustrated by rising bills, equipment rental traps, and contracts that never seem to end, this guide is for you.

The Nexgen contract trap: what’s really happening to your business

Thousands of Australian small business owners sign up for Nexgen phone and internet services believing they’re getting a good deal. What many don’t realise until it’s too late is that they’ve entered two separate agreements: one for the telecom services (calls, internet, lines) and a second for the equipment itself, often financed through a third-party lease provider like Grenke.

That equipment lease is the real pain point. You’re paying monthly for phones and hardware that you’ll never actually own. If you try to leave, you may owe the full remaining balance of the lease — sometimes thousands of dollars.

⚠  WATCH OUTNexgen’s own FAQ confirms that early termination of a rental or lease agreement requires paying “the fixed monthly rental payment multiplied by the remaining term, plus any fees, charges and arrears.” For a 48-month agreement with 2 years left, that can mean a very large payout.

Common pain points businesses stuck with Nexgen report

• Escalating costs — businesses report paying $300–$500+ per month for services they didn’t fully understand when they signed
• Hidden fees — subsequent installation fees, cloud service charges, and late payment penalties appearing with little warning
• Long lease terms — equipment agreements of 36–60 months mean businesses are locked in long after technology has moved on
• Billing after selling — some business owners continue being billed by Nexgen and Grenke even after selling their business
• Poor support — review after review cites difficulty getting timely responses when billing disputes arise
• Two separate contracts — many businesses don’t realise the equipment and the service are billed separately with different exit terms

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

Exiting a business telecom contract in Australia requires a structured approach. Here’s exactly what to do.

Step 1: Read both contracts carefully

Locate your original service agreement AND your equipment rental or lease agreement. These are separate documents. Check the start date, term length, and early termination clause in each one. Your lease agreement serves as your monthly tax invoice — email billing@nexgen.com.au to request a copy if needed.

Step 2: Calculate your exact exit cost

Contact Nexgen’s billing team (billing@nexgen.com.au or 1300 02 04 02) to get an accurate payout figure in writing. For the service contract, expect 30 days’ written notice. For equipment leases, the exit cost equals remaining monthly payments × months left, plus arrears and residual value.

Step 3: Check if Nexgen has breached their obligations

Australian Consumer Law and the Telecommunications Consumer Protections (TCP) Code protect small businesses. If Nexgen failed to deliver promised service quality, misrepresented the agreement at point of sale, or charged fees not disclosed in the contract, you may have grounds to exit without full penalty.

Step 4: Escalate to the Telecommunications Industry Ombudsman (TIO)

If Nexgen won’t negotiate a fair exit, the TIO is a free, independent dispute resolution service for small businesses. Call 1800 062 058. The TIO has authority to investigate billing disputes, misleading sales practices, and service failures. File a complaint before paying any exit fees.

Step 5: Contact the ACCC if you were misled

If you believe the sales process involved misleading conduct — such as false pricing claims or contracts signed under pressure — the ACCC can investigate under Australian Consumer Law. Lodge a report at accc.gov.au.

Step 6: Port your numbers before you cancel

Before cancelling any service, arrange for your business phone numbers to be ported to your new provider. Your new provider handles this on your behalf. Nexgen will continue billing until all services have ported away plus 30 days’ notice — so act early.

Step 7: Negotiate, novate, or pay out the lease

For equipment leases financed through Grenke, you have three options at end of term: return the equipment, purchase it at market value, or continue leasing. If you’re selling your business, Nexgen can assist with novating the equipment contract to the new owner. Always get any payout figure in writing before committing.

✔  PRO TIPAlways get your exit payout figure in writing before stopping any direct debits. Cancelling payments without formal written notice can result in debt collection action and damage to your business credit file.

What to look for in your next business telecom provider

Once you’re free from your existing contract, it’s critical to choose a provider whose model is transparent and works in your favour — not against it.

• No equipment lease traps — you own or cloud-host your phone system from day one
• Month-to-month flexibility or short-term contracts, not 36–60 month lock-ins
• All-inclusive pricing with no surprise installation or subsequent fees
• 100% Australian-based support — not offshore call centres
• Hosted VoIP or Cloud PBX so your system scales as your business does
• Number portability included — keep your existing phone numbers

Why businesses across Australia switch to Broadconnect

At Broadconnect, we’ve helped dozens of businesses transition away from restrictive telecom contracts. Our approach is the opposite of the equipment rental trap:

• Our Hosted Phone System runs in the cloud — there’s no hardware to rent, no lease to sign
• We’re a proudly NSW Government-listed supplier, so our standards are independently verified
• Our support team is 100% Australian-based, available whenever you need us
• We offer SIP Trunking, Microsoft Teams integration, and 4G/5G backup internet — all on flexible terms
• We manage the porting of your numbers from your existing provider

Frequently asked questions

Can I cancel my Nexgen contract early?

Yes, but you will typically owe an early termination fee based on your remaining contract months. Contact billing@nexgen.com.au or 1300 02 04 02 to get an accurate payout figure before making any decisions.

What happens to my equipment if I leave Nexgen?

If your equipment is on a rental or lease agreement (often financed through Grenke), you must pay out the remaining term or negotiate a settlement. At end of term, you can return the equipment, buy it at market value, or novate the agreement to a new business owner.

What is the TIO and can it help me?

The Telecommunications Industry Ombudsman (TIO) is a free, independent dispute resolution service for small businesses in Australia. If Nexgen hasn’t resolved your complaint within a reasonable timeframe, the TIO can step in. Call 1800 062 058 to lodge a complaint.

Will switching providers affect my phone number?

No — Australian businesses can port (transfer) their existing phone numbers to a new provider. Your new provider manages this process. Broadconnect handles number porting as part of our onboarding at no extra charge.

What is a hosted phone system and why is it better?

A hosted or cloud PBX phone system runs entirely in the cloud. There’s no physical hardware to purchase, rent, or maintain. You pay a simple monthly subscription per user, can scale up or down anytime, and your system is managed by your provider — not locked to rented equipment on your desk.

I sold my business but Nexgen is still billing me. What do I do?

Contact Nexgen’s billing team immediately and request written confirmation that services have been transferred or cancelled. If the issue persists, escalate to the TIO. Ensure the new owner completes any required digital signature or novation paperwork.

This article is for informational purposes only and does not constitute legal advice. For disputes involving your telecom contract, consult a qualified legal professional or contact the Telecommunications Industry Ombudsman at tio.com.au. Broadconnect is an Australia-wide business phone and internet provider — call 1300 880 330 or visit broadconnect.com.au.

Contact Us

Talk to our Sydney-based team today to find out how BroadConnect can transform your business communications.
📞 Book a Consultation or email us at hello@broadconnect.com.au to get started.

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Visit us: Level 26, 1 Bligh Street, Sydney NSW 2000 
Call: 1300 880 330
Email: hello@broadconnect.com.au

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