cancel
Showing results for 
Search instead for 
Did you mean: 

Annual contract versus monthly contract

N/A

Annual contract versus monthly contract

Can someone clarify for me the terms of an annual contract. I have looked through the forums and T&C and am still confused. I have just changed from ADSL home surf to Broadband home 1Mb and chose an annual contract rather than monthly as the regrade was cheaper. I assume I am now contracted for the next 12 months which is fine. But what happens after that - am I then on a monthly contract or do I start a new 12 month contract? Previous entries on the forum suggest that I should have moved to a monthly contract after the 12 months.

One of the reasons I am confused is that I had already completed more than 12 months on my ADSL homesurf contract so on the basis of the a previous post in the forum I should have gone on to a monthly contract. However when I trying options for the regrade and chose the monthly option it was going to charge me 24.99 whereas the pricing guide for regrading indicated that moving from a monthly contract to a monthly contract would only be £14.99. This suggests I was still on an annual contract.

:?
4 REPLIES
Community Veteran
Posts: 14,469
Registered: 30-07-2007

Annual contract versus monthly contract

The info about moving to a monthly contract when on an annual contract for 12 months is not correct and this has never been the case. You always remain on the same contract type, regardless of how long you have been on it, until you select to change it by changing products. The other myth is you changed to a different cheaper product once the 12 months were completed (e.g. easystart @ £24.99 -> ADSL home 512K @ £21.99 as some people have quoted). This is also untrue, you continue to pay £24.99 in that case unless you decide to change to a cheaper product.

It is a complex issue because an annual contract is different depending on what kind of product you signed up for. In essence if you decide to cancel before your first 12 months are up, you normally have to pay a cancellation fee (whose amount is dependant on the product you signed up for).

All I can say is for the first 12 months of an annual contract there will usually be be a cancellation fee if you cancel your account. After that time the annual contract (although still called an annual contract) has the same meaning as a monthly contract in that no cancellation fee is payable and you can give 30 days notice to cancel.

That is my understanding.
N/A

Annual contract versus monthly contract

talking of monthly/annual contracts....

if you decided to upgrade after the 12 months, in my case 20+ months, can't be bothered checking exactly how many Smiley to a faster annual contract.... am I right in saying that it is a new binding contract for 12 months? with the cancellation fee active again until 12 months of the new contract has passedHuh

or am I talking utter tosh?? Smiley

Chris
Community Veteran
Posts: 14,469
Registered: 30-07-2007

Annual contract versus monthly contract

That is one issue that has yet to be clarified fully by PlusNet - they are having internal discussions about it at the moment due to a lot of discussion on the subject both in here and on ADSLguide's plusnet forum. One thing I can say is the initial comments from PlusNet so far is if you elect to sign up for an annual contract when you change your speed or move from an old style product (ADSL home, homesurf or Easystart) to one of the new ones, you start a new 12 month contract.

However, an official statement is yet to be made on this so it could change.
N/A

Annual contract versus monthly contract

thats mighty strange, woulda thought it woulda been all sorted by now.

not that they are going to pry my *hopefully* new 2Mb line away from me that easily Cheesy

spose one can not argue which ever way they go, on a mobile phone contract, a new shiny phone means a new 12 month contract, so if they go that way, just be the norm, if they decide that you've done ur 1 yr, then great, it'll be a plus point, no pun intended, for existing customers.