I thought that I should update the thread to how it turned out despite the months that have passed. I contacted the executive office and got a reply fairly quickly. They told me that if I took the handset to apple and paid for apple to replace it that they would reimburse me. This was really not much of an option to me as the nearest apple store is some distance away. So, after a lot of “we will see what we can do“ they replaced the iPhone with a brand new 5S. The executive office is much more helpful than the normal support but the normal support were extremely helpful just in my case the issue was not straight forward. Thanks to silverfox1961 and this great site.

Thanks for your reply. Both 3 and apple confirm that it is a handset problem and 3 accept it's their fault. They want to help but on the basis that I pay apple the £220 to repair/replace the handset. I tried mentioning the sales of goods act but they keep referring back to pay apple and we will reimburse you. I am awaiting a call back within 48 hours but I send an email to the boss, I only seem to go around in circles with their call centre.

Hi I purchased an iPhone 5 from three's clearance website. The phone started to drop calls randomly a few months in and would never achieve a good signal. I took it to apple who confirmed there was a hardware fault with the handset and called 3, they also confirm this. The handset is just past apples 1 year warranty but 6 months into 3's 12 month guarentee on the handset. When i called them i asked for the phone to be repaired or replaced, they inform me that the phone is no longer made by apple and that i would need to take it to apple to be fixed/replaced there at a cost of £220. I cannot afford this and asked them if they could exchange the phone for a newer model ( iPhone 5S ) or release me from the contract. After a lot of call backs from 3 they offer me the 5C as an exchange. I refused the offer saying that i would like to have my original one repaired as I dont want a plastic exterior and that asked to be released from the contract. Unsurprisingly they refused this. Im not trying to get a 5S because its the latest one, I simply want my phone fixed or a new one that is like for like as the iPhone 5 is no longer made. My question is: What can I do about this in regards to getting my iPhone repaired or 3 releasing me from the contract? Thanks