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Contract length, how long would you commit for?

Spider
Grafter
Posts: 1,100
Registered: ‎05-04-2007

Contract length, how long would you commit for?

In light of the recent discussion on the new contract length I was wondering how far in to the future you would commit yourself knowing that if you cancel early you are liable for the outstanding payments. As more and more companies seem to want your longterm commitment, is it really in your best interests or theirs. Your thoughts are most welcome.
Note to mods: This poll does not breach the Forum Rules, please respect my curiosity.
79 REPLIES 79
HPsauce
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Re: Contract length, how long would you commit for?

I actually think (having voted) that it's more subtle than that.
You look at "value" e.g. what incentives there are, what flexibility there is, etc. i.e. the whole package
Wheel_nut
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Registered: ‎03-08-2007

Re: Contract length, how long would you commit for?

It's not as simple as that.
If I were getting "Free" Activation or Router or something else which was being amortised over a fixed contract term then I would be willing to consider a lock-in peiod BUT only with the ability to buy myself ourt by paying off the un-amortised balance.
If not accepting any freebies then a 30 Day notice period is the maximum that I would consider.
I thought I'd get that in before the Mods lock this thread.
pint
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Registered: ‎19-08-2007

Re: Contract length, how long would you commit for?

I would still only commit to the same contract length that i did when i joined plusnet  almost 5 years ago, 1 month.
Mav
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Registered: ‎06-04-2007

Re: Contract length, how long would you commit for?

I've often taken up various offers (free router, monthly discount, house move) that has tied me to a 12 month contract and have never given them a second thought as I have been happy with the service and never considered moving in 7 years.
An 18 month contract would not appeal to me but, then again, if the level of service continues as it has done I wouldn't have any complaints.
Not sure if it has been covered yet but what happens if a customer dies or just becomes incapacited in such a way that he/she no longer require access to broadband. Would they (or their estate in the case of death) be liable to upto 18 months subscription fees? Very unfair if that's the case.
It seems most mobile phone companies, too, are moving to 18 (& even 24) month contracts. This is, apparently, due to the subsidisation of the phones. As for PN, if no house move/modem/dicount is taken then I don't see any need for a 12month let alone 18 month contract.
Simply keep a high level of service and customers will want to stay - yes?

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Spider
Grafter
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Registered: ‎05-04-2007

Re: Contract length, how long would you commit for?

Quote from: Mav
....
Not sure if it has been covered yet but what happens if a customer dies or just becomes incapacited in such a way that he/she no longer require access to broadband. Would they (or their estate in the case of death) be liable to up to 18 months subscription fees? Very unfair if that's the case.
....

If memory serves me correctly  the contract liability on death falls to the deceased estate at the time of death unless there is an automatic termination clause built in to the contract. Depending on the type of contract a lot of companies will waive the outstanding fees, but it is at their discretion.
Unless a contract specifies 'get out clauses' then the customer is liable for the full fees contracted irrespective of their physical state as far as I am aware.
Mav
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Re: Contract length, how long would you commit for?

Hi Spider
I thought as much but, as in the case of a loan, hire purchase or anything else where the customer has received the goods 'up front', I can understand the need to recoup all monies being it repayents, deferred fees, etc at cancellation of the contract. But with a service such as BB (apart from the cost of supplied router, activation, cessation) I cannot see the need to force anyone to an 18 month contract and, on cancellation, force them to pay for a service they have not yet received.
Just my penny's...

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ChemicalBrother
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Registered: ‎05-04-2007

Re: Contract length, how long would you commit for?

Maybe this will help in the event of a untimely death...
Quote from: Mand

Quote from: puddy
Will my partner be chased by plusnet if I drop dead mid contract?

As a general policy we don't chase debt for deceased customers.
hadden
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Registered: ‎27-07-2007

Re: Contract length, how long would you commit for?

I have previously only committed to 12 month contracts where there was an incentive to do so. Other than that 30 days is long enough.
In OFCOMs "Review of the wholesale broadband access market", there are many references to notice periods, where a supplier plans to change its service (at the exchange). While not directly related to the contract period between PN and its customers, this document appears to give an indication of what OFCOM considers an appropriate contract length.
The period that is defined in the above document is always 12 months.
In the above document, where a term of 2 years was discussed for one situation: "Ofcom believes that a 2 year notice period would be disproportionate and would if fact be longer than many typical contract lengths. Ofcom, therefore, continues to believe that 12 months is appropriate for customers
who have existing contracts with BT to make any necessary alternative arrangements."
-------------------------
On the question of deceased customers during a 12 month contract, I know of one example of this situation (after 11 months). PN kindly waived the cancellation charges.
Strat
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Re: Contract length, how long would you commit for?

I clicked 12 months for two reasons:
1:  I have been with Plusnet for considerably longer and anticipate being with them for substantially longer.
2:  12 months seems to be a standard contractual period for most situations in life.
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Oleo
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Registered: ‎22-01-2009

Re: Contract length, how long would you commit for?

Unless it's a new provide SUBSIDISED by the ISP, then 12 months might be appropriate, in all other cases, ie migration, the bt provide fee paid for by the end user, no freebies etc. then one month is plenty. Some time ago when I was green as grass when it came to broadband, I stupidly signed up with tiscali. I wont repeat the story about that here, you can probably imagine. I feel 12 months is excessive, even 6 months. 18 months, well that one had me cracking ribs with laughter. We are going headlong into an economic depression, now is not the time to commit to long term commitments however small or manageable they may seem at the time. No one can forecast what will happen to jobs, or health.
Another thing crosses my mind. Why does plusnet feel that they have to 'lock' customers in, if the product is so good? Are they about to embark on something akin to what enta have just done which may cause customers to want to leave. Maybe I'm just cynical, but I have seen enough good ISP's go bad, that the first thing I look for when I'm shopping for a service provider is the EXIT. If I cannot get out of a contract, I don't enter into it in the first place.
jelv
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Re: Contract length, how long would you commit for?

It depends.
If I am certain that the service I am getting is appropriate to my needs I would contract for a year - I recently took up the £3 offer.
However now the influence of BT has appeared all over the latest product refresh I have grave concerns over the direction Plusnet is heading and I'm not sure that I would commit for a year at present.
jelv (a.k.a Spoon Whittler)
   Why I have left Plusnet (warning: long post!)   
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Mobile: iD mobile (£4/month)
Wheel_nut
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Registered: ‎03-08-2007

Re: Contract length, how long would you commit for?

Quote from: Oleo
Unless it's a new provide SUBSIDISED by the ISP, then 12 months might be appropriate, ...

Dont you mean "WHEN it's a new provide SUBSIDISED by the ISP, then 12 months might be appropriate, ..."
hadden
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Registered: ‎27-07-2007

Re: Contract length, how long would you commit for?

I think in the case of a new provide "subsidised" refers to initial fixed costs that incurred by the ISP. Setting a longer than standard contract period means that those costs can be spread over the period of the contract.
glloyd
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Re: Contract length, how long would you commit for?

18 months or even six or twelve months can be a hell of a long time if you are out of work with very little income coming in and no money to put food on the table or to buy shoes for the kids. The days of safe jobs have long gone so anyone, unless they are stinking rich, would be very foolish to commit themselve to long contacts even if it does save a few quid.