Telkom refuse to repair 6 week old phone

I purchased a contract with Telkom Mobile and received a brand new (or so they said) Samsung Z2 smartphone on the 5th of Nov 2014.<br> <br> I used the phone under normal conditions. About 6 weeks after I received the phone, the phone started showing problems, that got worse and worse over a 3 week period. Around Christmas, the touch screen had 2 different parts that did not work at all, and on the screen, it looked like the screen filament was pealing away from the screen, on the inside of the phone.<br> <br> I took the phone in in the first week of January, as soon as the shops opened after the holidays. Over the next 4 weeks I received 2 sms's from Telkom, saying that the phone has been checked in and then that it will be sent to their repair center. Then 2 days ago, after not hearing a word from telkom for a month, I went to the shop, and was informed that the phone will not be repaired since it is not a software problem, but that I have to continue paying the contract, and ON TOP OF ALL I have to PAY Telkom R181.10 as an admin fee, or they will not give me back my phone!<br> <br> I find it completely distasteful that the refuse to fix a brand new phone, and expect me to pay them to get my phone back.