UFB, contracts and prohibitive early termination fees

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steve98

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#112961 29-Dec-2012 19:19

Does anybody know of any service providers offering UFB without signing into a minimum term contract or at least not having grossly unfair early termination fees?

To give you an example, Snap have 12 or 24 months contracts. If you choose the 12 month option then they supply no equipment but to terminate early means you have to pay out the entire value of the contract. So if you choose the $75 plan and cancel after two months, you are stung with $750 even though they have no equipment costs to recover and the installation was paid for by the government.

The reason I ask is that we are moving into a new house on a UFB-only subdivision in Feb, meaning to get phone and Internet I will need to pick from one of the existing service providers for service, but I am fairly certain that I will want to switch to Telecom once they launch UFB products (I heard April?).

Interested to know what others think of these early termination fees?

Cheers

Steve

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#738397 29-Dec-2012 19:29

As has been said many many times on lots of other threads the LSP's are in a 12-month contract with Chorus when they connect a property to UFB so because of this it is very highly unlikely that any provider will have no-contract terms.

sbiddle

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#738400 29-Dec-2012 19:48

This has been discussed already in a number of threads. Basically there is no other option. Quite simply if you want Telecom wait until they launch a retail UFB product.

With a current cost for each house passed of just over $3000 and many installs so far costing in excess of $2000 both Chorus and LFC's impose term contacts on the ISP, who in turn pass these into the end consumer. It's nothing to do with cost recovery for the ISP, it's all about cost recovery for the infrastructure provider.

You may also want to check if you're also moving into a UFB only subdivision or an existing BoF greenfields subdivision. There are very few UFB only subdivisions, but plenty of BoF areas.

steve98

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#738407 29-Dec-2012 20:48

OK must have missed those other threads, thanks for the info. Yes, it's definitely UFB and not BOF. The original parts of the subdivision are on BoF but the later stages (including mine) are going straight to UFB.

Zeon

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#738412 29-Dec-2012 20:49

I'm getting a first connection with Orcon and they are being extremely open ended about it. I haven't had to sign a contract or anything. I have also explicitly stated we may move within 12 months and they have emailed me saying that isn't a problem.....

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steve98

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#738413 29-Dec-2012 20:53

Zeon: I'm getting a first connection with Orcon and they are being extremely open ended about it. I haven't had to sign a contract or anything. I have also explicitly stated we may move within 12 months and they have emailed me saying that isn't a problem.....

Ah... that sounds promising, might have to talk to them. Cheers for that.

steve98

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#738414 29-Dec-2012 20:56

Hmm. On second thoughts, their website is pretty explicit:

CONTRACT OPTIONS

12 month fixed term
Fibre installation fee may apply
Early termination requires you to pay the total cost of the service for the remainder of the contract period

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sbiddle

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#738666 30-Dec-2012 18:58

I is worth notig that there is provision in the Chorus / LCF contract for ETC's to be avoided if the connection is transferred to another service provider with the same minimum monthy fee. You can view these contacts online, so it might be worth checking with your ISP.

steve98

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#738702 30-Dec-2012 20:46

Ah nice. Thanks for that, will take a look - might be good ammunition for negotiating my way out of any termination fee if what I'm doing isn't going to cost the ISP anything.

raytaylor

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#739278 2-Jan-2013 00:48

Thats a good point - get it in writing though.

Get them to state that if the new homeowner or occupant takes over the fibre tail, and "we as the isp" are not charged the early termination fee from chorus, then you will not be liable for the outstanding balance on the contract.

You dont want to get a "yes" over the phone now, and end up dealing with some low level accounts monkey when the time comes to move who is sticking to the guidelines.

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dolsen

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#739289 2-Jan-2013 07:45

Set a a 2 talk account, have call recording on and record the phone call with them where they say that you do not have to pay. Save the recording and then, if they want you to pay, send them the recording where they say that you don't have to.

LWJCarroll

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#739550 3-Jan-2013 00:35

sbiddle: This has been discussed already in a number of threads. Basically there is no other option. Quite simply if you want Telecom wait until they launch a retail UFB product.

With a current cost for each house passed of just over $3000 and many installs so far costing in excess of $2000 both Chorus and LFC's impose term contacts on the ISP, who in turn pass these into the end consumer. It's nothing to do with cost recovery for the ISP, it's all about cost recovery for the infrastructure provider.

You may also want to check if you're also moving into a UFB only subdivision or an existing BoF greenfields subdivision. There are very few UFB only subdivisions, but plenty of BoF areas.

Hi...dumb question I guess but what does BoF mean?...I live in a new subdivision and we dont have any fibre in it...( I Googled the term but didnt find it)

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LennonNZ

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#739551 3-Jan-2013 00:50

BoF = Broadband over fibre.. The Pre-UFB system that was offered to ISPs a number of years ago. Xnet was the only ISP who took it up and was the Only ISP in certain areas that would supply service.

I believe this is going to change this year and BoF areas will be converted into UFB Areas and then any UFB ISP will be able to offer services in those areas.

steve98

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#740937 7-Jan-2013 11:19

Anyone know anything about Kiwilink? Their website is pretty uninspiring but their UFB page does specifically state 'no contracts'.

http://kiwilink.co.nz/Fibre-residential.php

Beccara

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#740969 7-Jan-2013 11:58

I would be wary of anyone offering no contract's, It's exposing the ISP to $450-660 worth of fees from the LFC if the client disconnects.

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steve98

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#740988 7-Jan-2013 12:17

Yup, that's exactly why I'm asking if anybody knows anything about them

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