Telstra is giving away 12,000 phones ahead of 3G shutdown

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Telstra has announced it will be giving away 12,000 free mobile phones to vulnerable customers in a bid to help them transition to the 4G network.

The 3G network is set to shut down on August 31.

The closure of the 20-year-old network was delayed in May by two months over fears some customers would be left without the capacity to make emergency calls.

From today, Telstra will be providing complimentary mobile handsets to thousands of customers who are either facing challenges, live in rural areas or are elderly.

"These customers are in difficult situations, and facing things such as financial hardship, or recovering from a natural disaster," Telstra Consumer Segment Executive Marty McGrath said.

"Some of these customers also depend on a working phone because they are living with a life-threatening medical condition.

"Many of these customers are also over 80 years old and living in regional areas, which can make visiting our stores challenging."

Telstra will be informing customers in the next few weeks if they will receive a new handset.

The Salvation Army's Major Brendan Nottle praised the move from Telstra.

"This initiative will benefit the most vulnerable members of our community. Connection is one of the most important things to maintain in our society, whether it is with friends and family or with housing and support services," Nottle said.

"Ensuring that every Australian, from any background or level of income, can take part in our modern digital society is crucial. A phone can be a gateway to social inclusion, community connection and support."

There are currently around 156,000 customers who are still using 3G-only phones which will no longer work after the shutdown, or who have phones with 4G coverage limitations. Of particular concern are those with 4G phones that are hardwired to use 3G for emergency calls.

Customers who will be affected by the shutdown should now be hearing a pre-recorded message when making an outgoing call on their mobile phone.

Telstra is urging customers who hear the message not ignore it and to act now.

Anyone who is unsure if their phone will be affected can also send a SMS 3 to 3498 (3GXT) to check.