ETF fees and extension when moving?

Forums › 2degrees (including Slingshot, Orcon, Flip, Stuff Fibre, MyRepublic, 2talk and Vocus) › ETF fees and extension when moving?

Romn

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#191339 1-Feb-2016 15:52

Hi,

I am currently with an unlimited VDSL contract with Slingshot, the term of my contract is in a couple of month and I am not really willing to continue with them (as I had some issues recently and they were terrible to fix them).

I am moving in a couple of weeks to a new home where only regular ADSL is available (already sad in itself).

Slingshot told me that I have the choice of:

- pay $199 of termination fees

- switch my contract to an ADSL one, meaning making a new contract and extending the term for at least one more year

I find it a bit gross, it is their fault, they can't fulfil their part of the contract (provide VDSL to me) and I will be the one who have to pay fees? I this legal?

I came from overseas and I am living in NZ only for two years, so I don't really now if it is something normal here, but in my home country this is call "compulsory sale" and is punished by law.

Do you have any advise or comment on this?

Thank you.

sbiddle

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#1482941 1-Feb-2016 16:03

It's not Slingshot's fault they can't provide VDSL2 at your new address - if having VDSL2 was important you should have looked at options for property before you moved. It's available to somewhere 50% of the population.

Likewise you signed a contract so this is binding. There are plenty of providers out there that do offer no term contracts so it may be better to simply pay the ETF and sign up with one of these.

Term contracts are perfectly legal in NZ and there are plenty of providers who don't offer term contacts - that's something you really need to look at when entering into one.

richms

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#1482954 1-Feb-2016 16:33

If you were moving within the contract term, why did you agree to it in exchange for the free stuff you get with a contract?

Richard rich.ms

DarkShadow

1647 posts

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#1482955 1-Feb-2016 16:36

Actually, you are the one breaking the contract by moving house. It's not Slingshot's fault you're moving somewhere without VDSL.

There are many providers who provide a no contract service if you prefer it this way.

Romn

23 posts

Geek

#1482956 1-Feb-2016 16:39

Just because things happen you don't necessary plan one year in advance may happen. We were aiming to stay in our current house for the longer possible, but we can't figure out the house quality will be so poor before actually living in it.

But anyway, I agree it is my fault and I should have read the contract more in detail, usually in Europe moving somewhere they can't provide the service you pay for is a terminaison term, I was too confident here.

I saw Bigpipe and Flip with no term, I will have a thought if it is worth to pay Slingshot's ETF fees and change or not (I hope this time we will stay more than one year in our new house).

shortcircuit

86 posts

Master Geek

#1482968 1-Feb-2016 17:06

Romn:

Hi,

I am currently with an unlimited VDSL contract with Slingshot, the term of my contract is in a couple of month and I am not really willing to continue with them (as I had some issues recently and they were terrible to fix them).

I am moving in a couple of weeks to a new home where only regular ADSL is available (already sad in itself).

Slingshot told me that I have the choice of:

- pay $199 of termination fees

- switch my contract to an ADSL one, meaning making a new contract and extending the term for at least one more year

I find it a bit gross, it is their fault, they can't fulfil their part of the contract (provide VDSL to me) and I will be the one who have to pay fees? I this legal?

I came from overseas and I am living in NZ only for two years, so I don't really now if it is something normal here, but in my home country this is call "compulsory sale" and is punished by law.

Do you have any advise or comment on this?

Thank you.

Hi Romn,

I think what the guy at Slingshot told you was wrong.

It sounds like you only have a few months left on your contract with them. As long as you transfer to your new house and keep Slingshot as your provider you should not suffer any penalty. Their terms I copied below say that 'as long as you remain a slingshot customer for 12 consecutive months there will be no termination fee'.

If you keep with Slingshot at the new house (and survive will ordinary ADSL broadband) for the few months until your contract ends you should only pay the normal moving/reconnection fees. They can't force you to sign up for another 12 months. The Commerce Commission in New Zealand would think this is not fair on you.

So- I think change over to ordinary broadband for the rest of your contract and save your self the termination fee (which is $149, not $199), then change from Slingshot to someone else without a term contract

These are the contract terms on Slingshot web site:

"When you signed up you will have been asked to commit to a contract. This means that you have agreed to remain a Slingshot broadband customer for a minimum of 12 consecutive months. The contract begins the day you are billed for your first month of broadband access.

You can change broadband plans at any time without any effect on your contract.
If you cancel your broadband account prior to the conclusion of the term, you will be charged a $149 early termination fee.

When moving house or your phone line, you will not be charged a termination fee for the contract but reconnection fees will apply."

richms

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#1482969 1-Feb-2016 17:08

When moving house or your phone line, you will not be charged a termination fee for the contract but reconnection fees will apply."

which from memory is the same price as the contract break fee anyway.

Richard rich.ms

shortcircuit

86 posts

Master Geek

#1482990 1-Feb-2016 17:22

richms:

When moving house or your phone line, you will not be charged a termination fee for the contract but reconnection fees will apply."

which from memory is the same price as the contract break fee anyway.

I wouldn't put it past a provider to try that.

The Commerce Comission would also not be impressed if a provider tried to charge moving/re connection fees that were higher than termination fees ie $199 quoted by the guy at Slingshot as opposed to the $149 termination fee on the web site.

Not surprisingly, the 'move fees' link on the contract page goes to a page that doesn't state any fees. It does say:

"Please note that if you're moving from a fibre area to a non fibre area there may be additional charges if you are still in a contract at your previous address."

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Slingshot

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Slingshot

#1483573 2-Feb-2016 14:14

Romn:

Hi,

I am currently with an unlimited VDSL contract with Slingshot, the term of my contract is in a couple of month and I am not really willing to continue with them (as I had some issues recently and they were terrible to fix them).

I am moving in a couple of weeks to a new home where only regular ADSL is available (already sad in itself).

Slingshot told me that I have the choice of:

- pay $199 of termination fees

- switch my contract to an ADSL one, meaning making a new contract and extending the term for at least one more year

I find it a bit gross, it is their fault, they can't fulfil their part of the contract (provide VDSL to me) and I will be the one who have to pay fees? I this legal?

I came from overseas and I am living in NZ only for two years, so I don't really now if it is something normal here, but in my home country this is call "compulsory sale" and is punished by law.

Do you have any advise or comment on this?

Thank you.

Hello,

Unfortunately we can't control what services are available at the address you move to so in this case we wouldn't be able to remove the contract term. Though we wouldn't apply a new contract should we only be able to offer ADSL. You would just be moved to a comparable ADSL plan for the remainder of the term you initially signed up to. Move fees are only applied in a scenario in which there has been no recent service at the address and install work is required. This would result in a $50 cost as long a the physical line work in intact. Generally no charge would apply.

Cheers

www.slingshot.co.nz

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Romn

23 posts

Geek

#1483576 2-Feb-2016 14:21

Hi,

Thank you for you answer.

I know you don't control the service available at one address (Chorus does it, but it is your supplier and it is transparent from my point of vue).

To let me move and switch my plan to an ADSL one without extending my contract is totally fair and what I expected. Thanks for that.

Regards,