Jun 28, 2017

The Next Big Thing in Broadband: Early Termination Penalties

Published Apr 10, 2007, 12:00pm



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The Next Big Thing in Broadband: Early Termination Penalties


Broadband Internet providers are increasingly imposing early termination fees to keep their customers from straying away for a better deal somewhere else.

Such fees have been a routine part wireless phone contracts for years, but only recently have they begun to show up in the broadband business. Typically, the fees are included in the fine print of long-term contracts of a year or more. Many of the low-priced promotional offers offered by the companies require customers to sign such long-term contracts.

AT&T (Including SBC and BellSouth)
* Charges a $99 early termination fee.
* The price of broadband service for month-to-month and annual contract customers is the same, but those who sign up for a one-year get one month of broadband service free.
* In many parts of the country customers can get a bundle of broadband, phone and television for $99 per month. The price goes up if any of the services are dropped within the term of the contract.
Cablevision
* No early termination fee.
* Customers can get a bundle of broadband, phone and television at a discount rate, but a contract is required. The price goes up if any of the services are dropped within the term of the contract.
Charter
* No early termination fee.
* Customers can get a bundle of broadband, phone and television at a discount rate, but a contract is required. The price goes up if any of the services are dropped within the term of the contract.
Comcast
* No early termination fee.
* In many parts of the country customers can get a bundle of broadband, phone and television for $99 per month. The price goes up if any of the services are dropped within the term of the contract.
Earthlink
* Charges a $149 early termination fee on a one-year contract for DSL service.
* Offers a bundle of high-speed DSL and phone service.
Qwest
* Charges a $200 early termination fee on a two-year contract for its high speed Internet service.
* Rates are the same for month-to-month and two year contracts, but customers who sign up for two-year contract will not be subject to future price increases for as long as keep broadband service with Qwest.
Time Warner Cable
* No early termination fee.
* Offers various bundles of broadband, phone and television services.
Verizon
* Charges early termination fee of $69 for its FiOS fiber optic broadband service and $79 for its DSL high-speed internet service. Service can be cancelled within first month without having to pay early termination fee.
* Rate for FiOS is about $5 less per month under annual contract. Rate for DSL is $2-$8 less per month under annual contract.
* Offers various bundles of broadband, phone and television services.


http://www.consumersunion.org/

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Comments

1 comment(s) on this page. Add your own comment below.

Andy
Feb 1, 2010 8:55am [ 1 ]

Regarding Time Warner Cable, they DO in fact impose an Early Termination Fee. With my cable/internet bundle, they charged me $250 ETF.

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