2 ms·
Will they raise rates, or just stop offering the discounts for contract? Right now the way it typically works is they have some monthly rate for service withou
by tzs 3y ago
Will they raise rates, or just stop offering the discounts for contract?
Right now the way it typically works is they have some monthly rate for service without a contract, say $100/month, and a discount monthly rate if you are on a contract, say $80/month but with a termination fee if you cancel service before the end of the contact (unless you are moving to somewhere where their service is not available).
Wouldn't their response to this be to simply stop offering the $80/month with a contract option so everyone has to go for the $100/month month to month service?
Speaking of contracts, I've realized from other comments that there are actually at least two kinds of contracts ISPs are using.
Apparently at some ISPs your contract is for N years of a specific plan. If you want to change to a different plan at that ISP you have to break the contract and can get hit with the early termination fee.
At others, such as Comcast, the contract is that you will maintain Comcast service for N years, and that if you keep the specific plan you are on they will not raise your price for N years. Changing Comcast plans does not break the contract. You just lose your price guarantee on your original plan, so if you later change back to it you will pay whatever the current price is.
For example, I canceled my Comcast "triple play" internet/voice/TV plan and replaced it with an internet-only plan a year into a two year contract with no problem and no termination fee.
I'm curious which of these approaches is more common.