| Generally, broadband providers require a
contract agreement, usually for a period of 12 months. This is a means for
the broadband supplier, of
off-setting the costs involved in setting up a broadband account, including the
activation fee and the cost of the modem.
Regardless of which broadband supplier is chosen, the supplier themselves
must pay a one-off connection fee (activation fee) of £50.00 in order to
connect a broadband account to the network. Modem costs are variable but
generally begin at around £35.
While a no contract broadband agreement does indeed mean that the
agreement may be terminated, typically with 28 days notice; it also means
that the broadband supplier has no way of recouping set-up costs and may
then choose to pass these costs directly to the consumer.
Sometimes, what this means in practice, is that the connection fee of £50.00 and the
cost of a modem (around £30 min) can become part of the initial start-up cost
of entering into a no contract agreement.
Virgin broadband is a notable exception to this 'rule'.
Sometimes, though not always, it may also be the case that the broadband supplier charges a slightly
higher monthly rate, or does not offer the discounts available with a
fixed-term agreement. |
