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Activation Fee

wheelnut
Grafter
Posts: 102
Registered: 01-08-2007

Activation Fee

I must admit I am a bit confused over this 'activation fee' for broadband. My understanding 'was' that this is the cost incurred for having the twisted pair from your phone line in the exchange transferred from a conventional rack to a broadband/telephone mux rack. (nice work if you can get it!)

I have just signed up for Homeworker Pro and were charged £70.50 activation fee (which will not actually occur until August).

Why is the activation fee for the new 14.99 lite service £58.75? Do BT use cheaper wire (LOL) ?

Just curious

Mike
9 REPLIES
N/A

Activation Fee

IIRC the £70.50 is for monthly contract (i.e. you can cancel after a month) and £58.75 is for a yearly contract (you have to stay for a minimum of a year). This is separate from the type fo service you signed up for.
Plusnet Staff
Plusnet Staff
Posts: 12,169
Thanks: 18
Fixes: 1
Registered: 04-04-2007

Activation Fee

Hi,

With the exception of EasyStart the activation fee is the same on all of our broadband accounts at £58.75 on an annual account and £70.50 for monthly. This is what BT charge us so we just passing on this cost.
wheelnut
Grafter
Posts: 102
Registered: 01-08-2007

Activation Fee

OK, thanks for clearing that up!

So I assume the minimum contract for the ADSL home Lite is 12 months then?
Community Veteran
Posts: 6,111
Thanks: 1
Registered: 05-04-2007

Activation Fee

Nope, 1 month, as with the others... though, as Dave said, you'd have to pay a higher activation fee for that (£70.50).

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

Activation Fee

When you click the signup button for a product, you are taken to a screen where all the options are available for that product and their costs.
N/A

Activation Fee

Quote
... the activation fee is the same on all of our broadband accounts at £58.75 on an annual account and £70.50 for monthly. This is what BT charge us so we just passing on this cost.


So, how do BT know whether a Plusnet customer has signed for 1 month or 12 months?
:?
Community Veteran
Posts: 5,878
Registered: 04-04-2007

Activation Fee

They dont. The activation fee as far as BT are concerned is still 58.75, PlusNet charge the extra to cover the costs at thier end which on a 12 month subscription can be easily spread and absorbed for them.
Its basically to put you off going for a 1 month contract and to opt for the 12 month instead.

Chris
Plusnet Staff
Plusnet Staff
Posts: 12,169
Thanks: 18
Fixes: 1
Registered: 04-04-2007

Activation Fee

Hi,

This is built into how we pay BT I believe, it costs us more to pay for account monthly rather than yearly due to the way fees are calculated as well as the time it takes the accounts team to process the transactions.
Community Veteran
Posts: 5,878
Registered: 04-04-2007

Activation Fee

AFAIK all fees are actually paid to BT on a monthly basis, however it is mainly to reduce accounting overheads as you suggest but only from your end.

Chris