Thanks for your reply. I'm happy to keep paying using my old phone, my issue is with paying VAT on top of the contract amount (I was under the impression that the "total monthly cost" included VAT) and the fact that I'm not getting phone service at all at my workplace in zone 1 central London. If I was getting a service that I could use then I wouldn't have a problem with continuing the contract, but I'm not getting what I'm paying for. The stolen phone (aside from having to pay for the calls) isn't an issue so much because it was my fault, but more a problem that if I was to cancel the contract citing the setvice problems as per Three's T&CsI don't have the phone to give back. If the phone is considered a gift as you say, does that mean I don't have to return it?

I have had ongoing problems with Three mobile since I started my contract in November. I signed up to a £30 a month One Plan with the iPhone 4s. When I signed up the contract plan was advertised at total £30-31 a month (I forget the exact figure). My bill is always £5-10 more anyway because of international calls not included in the plan anyway, but every month then I have been charged 20% VAT on top of the entire amount, which is adding up to an extra £10 a month. In January my phone was stolen and I stupidly didn't have insurance. It was also used to make calls to Algeria between it being stolen and me realising and contacting Three. They made £30 of calls which I have had to pay for because they were made between the phone being stolen and me realising and phoning Three to report it stolen (it was because of them I found out it was stolen and not just lost somewhere in my house). At the time I was told that I wouldn't have to pay for those calls and that they were going to put a note on my account. But when my bill came I was charged for them and they're refusing to drop the charges, claiming they never told me I wouldn't have to pay it. Is there any way I can make them go back over the phone conversation recording? Also, at the time I started my contract I had full mobile coverage at home and at work but now I have changed jobs and no longer have phone service at my new work. I never get internet connection and phone service is patchy and never more than 1 bar. I got full service at my last job out in the countryside but now I'm around Liverpool Street in central London it's terrible. What are my options? I understand Three has a rarely publicised clause allowing customers out of their contract if "at any time they get poor coverage" but if this means terminating my contract I don't have the phone to return to them. I have been using my old iPhone 4 on the contract since my 4s was stolen. Can I terminate the contract without paying a termination fee and not returning the phone? I paid around £100-120 for the phone when I signed the contract but realise that's not the full outright fee. I don't have the money to pay to get out of the contract either. What can I do? It's really stressing me out and Three customer service aren't helpful at all!