Mobile phone & EU warranty directive

Hi,
I have a mobile phone (high function PDA type) which is 15 months old.
It was purchased from one of the major networks as an "upgrade". I
paid £150 by credit card direct to the network (not an agent) & agreed
to a further 12 months contract.
On this particular model the "joystick" has been problematic - not
infrequently failing. Mine did after 15 months. (no water/drops or
other evidence of physical damage)

On approaching the network they hide behind the manufacturer's
warranty & after agreeing to examine, are now asking for £££ to
repair stating the reason as being "outside maufacturers warranty".
They actually said

"As outlined in the terms and conditions of your contract, after the
initial 28 day retailer's warranty, the manufacturer is responsible for
the repair of faulty handsets."

which to me is absolutely incorrect. They retain liability as supplier.

Am I correct that
* it would be reasonable to expect such a device to last > 15 months
* my upgrade purchase is covered as a consumer purchase & covered
under the acts below
* The manufacturer's warranty is irrelevant/optional addition to my
statutory writes
* Sales/Goods act 1979 & sale/supply of goods act 1994 applies saying
the goods should meet the standard a reasonable person ... etc...
* EU directive 1994/44/EC applies giving a pretty blanket 2yr cover

I have notified the company to reply within 7 days & initial call today
is suggesting they're not interested. I intend to try calling HQ next
week, but assuming I get nowhere what should I do next

a) Approach CC company under the Consumer Credit Card act 1974 and
request repair or refund of £150 paid
b) Send a reminder to their executive/hq
c) As b) but commence legal action after 7 days

Thoughts? Am I being reasonable?

A side question - The handset "value" new is more like £300 (I got a
price around this when I wanted to know how much a new one was without
a new contract). I could have got it "free" if I'd gone for a more
heavyweight contract... so what is the value of what I should be
claiming? repair cost? replacement cost? what I paid? reasonable
expenses (postage, calls? time???). I expect the repair cost to be
quite high as I think the main system board has failed. Does the value
of the overall contract come in to it? Is the amount reduced as the
associated 12month "service" contract came to a conclusion?

Thanks..

.

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