I'd bet this is a spot where the connection to the Massinger tower would become difficult and the phone connected to Ballina.
From the Coroner's findings:
"did connect to the Ballina tower during three of the abseilers (green, blue and red) descents but not the fourth (purple) descent; "
I've added a screenshot of the abseiling experiment on top of google maps and marked the spot in the image above:
It's a spot that is within 300 feet of houses to allow for a wifi handshake.
It's also a spot to sit down, use your phone and send some text messages.
From the Coroner's findings:
"at 12.55am, Theo sent a brief message on WhatsApp to Emma. The message was in French (“merci”) and continued a discussion thread from earlier that evening; (e) at 12.56am, Theo sent a message on WhatsApp to Loic Speiss a German backpacker Theo had met in January 2019 in Melbourne and travelled with for about a month. The message was in French and responded to a message from Loic sent earlier that night, at about 10.30pm, asking Theo
if Byron Bay was a “surfers paradise”. In his response Theo used a slang expression meaning something along the lines of “yes, totally!”"
Right after that spot, the footpath continues downhill and is quite steep:
To me, this looks like a spot where one could tripp and maybe fall or lose balance and drop a phone. In the dark, it wouldn't be easy to find it even with a flashlight.
If the phone dropped it could explain why it stopped transmitting data.
From the Coroner's findings:
"At 1.02am, Theo’s phone stopped transmitting data. It reconnected to the network at 6.17am but there was no further user activity."
That spot is a great place to view the sunrise and I've read it was one of the popular activities among tourists in Byron Bay.
Sunrise for June 1 2019 was at 06:30.
People going to see the sunrise would be walking that path at 6:17AM, right before.
Someone picked it up, it reconnected to the network and it remained in the area. If the phone dropped it would have likely had a broken or scratched screen, nobody would be interested in keeping a broken phone.
As for Theo's phone not connecting to one or two very nearby towers, from what I've read there can be many reasons why, the obvious one is you're already connected to a tower, and also being too close when there's a better connection to a tower further away. Claiming Theo couldn't have gotten to the headland simply because his phone didn't connect to a specific tower is false IMO. When the signal from the Massinger tower was weaker Theo's phone connected to Ballina and the route as outlined above is clearly in sight of the Ballina Reservoir tower.
So Theo could have walked out of there but without his phone. IMO.