Minimum Contract Periods
Your Minimum Contract Period will be determined by the account type for which you signup. The rules that specify what your Minimum Contract Period are as follows:
1. Business customers enter into a 12 month contract.
2. Residential customers enter into a 1 month contract unless you:
- specifically choose to sign up to an annual contract account, or
- specifically choose to sign up to a 'No Install Fee', 'Deferred Hardware' or 'No Activation Fee' ADSL account options (see below), or
- choose to signup to a BT-install ADSL product, in which cases your Minimum Contract Period is 12 months.
At the end of your contract period, if you do not tell us that you wish to cancel we will automatically renew your contract. Your cancellation request must be given 30 days prior to your contract end date.
ADSL 'No Install Fee', 'Deferred Hardware' or 'No Activation Fee' options and the Cancellation Penalty
What must I pay if I leave within the first 12-months?
Should you decide to leave the service prior to fulfilling an initial 12-month term a cancellation charge would be levied. This is referred to in Section 19 of the Terms and Conditions as the Cancellation Penalty.
Should you leave the service within the first 12-months of your subscription this Cancellation Penalty would be calculated from the following values:
- Activation Fee. This is the full cost of the BT line activation fee that was in effect at time of subscribing to the service.
- Outstanding Fees. These being the cost of supplied Hardware if outstanding.
- Outstanding Period. The amount of whole months remaining to fulfil a 12-month initial term.
- Administrative Charge. An administrative fee, this being the sum of �11.75 inc VAT.
For customers with 'No Activation Fee' products, the Cancellation Penalty will be calculated as follows:
Activation Fee plus Outstanding Fees plus ten percent of the same, divided by twelve and multiplied by the Outstanding Period, plus the Administrative Charge.
For all other customers the Cancellation Penalty will be solely the Administrative Charge.
John signed up to 'ADSL Home Self Install' with USB modem Starter Pack, choosing to spread the cost of his Starter Pack over the first year with the 'no activation fee' option.
He has been a customer for 5 months, having signed up on 5th March. Whilst he has enjoyed his ADSL Home account he is moving house to an area that cannot get ADSL and gives his 30 days notice on 17th August. Because John's next subscription payment falls within the notice period, his account is due to be closed on 4th October. This leaves a further 5 months to run until his initial 12-month term is completed.
Instead of being held to a 12-month contract which would cost John 5 X £30.99* = £154.95, John's actual settlement figure is calculated as follows:
- The standard activation/install fee at the time of signing up was £58.75 inc VAT
- The Outstanding Fees (hardware) is £52.24
- The Outstanding Period is 5 (months).
- Admin Charge is £11.75
John's Cancellation Penalty then is calculated at:
- Activation/Install Fee (£58.75) + Outstanding Fee (£52.24) = £110.99
- + 10% (£11.10) = £122.09
- Divided by 12 = £10.17
- Multiplied by Outstanding period (5) = £50.85
- + Admin Charge (£11.75)
* product price shown is an example
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