Optus will allow customers to trade in their old smartphone for credit towards a new plan in a new scheme called 'Trade In, Trade Up', provided they sign up to a new 24 month contract.
The Trade In, Trade Up offer is available from today and will offer customers credit towards their new phone bill, depending on the model, popularity and condition of the used handset.
The offer is available to both new and re-contracting postpaid mobile customers, and a valuation on the older handset can be provided at all Optus retail stores across Australia.
Optus' managing director of sales, Rohan Ganeson, said the Trade In, Trade Up offer is a first among telcos in Australia.
"Trade In, Trade Up is a first for Australian telcos, nothing like this has ever been done by an Australian telecommunications carrier."
"This offer puts our customers' front of mind by making it cheaper for them to upgrade and making it easier for them by saving time and hassle of selling their old phone themselves."
Optus says the trade in offer can be taken up to seven days from the day a customer signs a new contract, but the trade in value is only guaranteed on the same day.
Any eligible trade in credit will be applied to the second bill of any new 24 month contract.
Optus will only accept eligible smartphones that can power on, and the valuation will vary depending on the condition of the used device.
Optus says only certain smartphones are eligible for the Trade In, Trade Up offer. The list includes Apple's iPhone 3GS, 4, 4S and 5 handsets, the BlackBerry Q10 and Z10, the HTC One and One X, and the Samsung Galaxy Nexus, Galaxy S3, Galaxy S2, Galaxy Note 2 and original Galaxy Note.