Broadband Cease Fee - Why?

[#1]

This does appear to be a thoroughly illogical situation in today's Telecomms market. 

The government in the latest Queen's speech implies that Broadband access should be seen as a Universal Service with provision at 10 Mbps (min), though it is not yet enshrined in law.  An attempt to ensure the UK does lag behind other developing countries.

BT Openreach on the other hand still sees the service much as it was in earlier years when an engineer had to physically change wiring on the MDF.  Long gone.  (Well for most exchanges anyhow!)

Just imagine taking this position with Water, Gas, Banking.  Untenable thinking these days.

I appreciate that this is a BT cessation charge and that Plusnet can do little but apply it when required by their service agreement.  But it's just not logical, most homes NEED broadband these days.

Some 'pushback' to BT needed from OFCOM.

M

[#2]

According to the WBC price list spreadsheets, there's no BTWholesale broadband cease fee in Market A (the not low-cost areas).

[#3]

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@ejs wrote:

in Market A (the not low-cost areas).

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This particular case is in a low cost area.

[#4]

I have now cancelled my contract, after 16 years, because Plusnet have tried to blackmail me into taking a 24 month contract if I transfer. If I don't want a 24 month contract, they'll charge me over £100 to transfer to a new address ... I told them where to go and signed up with BT at the new address. A 12 month contract and no charges ...

Interestingly, as soon as I started querying the £30 Cease Fee, I was told if I didn't pay, it would be passed to a debt recovery agency which could impact on my credit rating.

I rather think they get a lot of people objecting to this "Cease Fee" which, as you rightly point out is at the very least illogical although I rather see it as a nice little earner for BT and which certainly doesn't tie in with the idea that broadband should be a universal service. Especially as turning the broadband off is actually going to take somebody 2 minutes at a computer - if they actually do turn it off

[#5]

I am sorry to hear that you have decided to leave our service. To clarify why we give the option of a 24 or 18 month contract to transfer your service to a new address is because we will cover the costs of your transfer. If you choose to stay on your existing contract then we would charge for the move.

The reason behind this is because we have to cease the line at your current address and then activate the new asset at your new property. Now to do this an engineer will have to go to the exchanges and physically do this which our suppliers charge us for. Also if there is no active line at the new premises then an engineer booking will need to be made to install the line which costs £49.99.

The option of the new contract is not forced but given to you and as it's an option it's your choice to decide if you want to take it or not. The main benefit of the new contract is that we discount the package cost for broadband over the span of the new contract which is more cost effective in the majority of cases.

[#6]

Interestingly, as soon as I started querying the £30 Cease Fee, I was told if I didn't pay, it would be passed to a debt recovery agency which could impact on my credit rating.

Blatant misrepresentation, your credit rating would only be affected if this went to court, and they won, and only then if you didn't pay within a certain time.

[#7]

If the amount outstanding was sent to a debt recovery agency it could have an effect if it was left long enough and additional charges could be applied by the 3rd party company but hopefully it wouldn't get that far. The cease fee can be disputed with our billing team after the closure of the account.

[#8]

If the amount outstanding was sent to a debt recovery agency it could have an effect if it was left long enough

Do you have an authoritative source for that assertion?   A debt recovery agent is just someone asking for payment, it gives the alleged debt no additional legal standing, in particular because such agencies can be assigned (alleged) debts without any proof of validity.

Which specific credit searches and ratings in particular have you found to be affected as a result of you engaging a recovery agent?