Do not let your current carrier hold you hostage due to shady contract terms!
We frequently meet with businesses that have missed their opportunity to renegotiate more competitive rates & improve their Telecom Service because they’ve failed to manage their existing service contracts properly.
Most people are unaware, but almost every telecom provider has auto renewal clauses incorporated into their agreements. Carrier contracts will typically auto renew unless the customer provides written notification to the carrier of their intent to cancel service within a specified period of time prior to the end of the contract. (Typically 30 to 60 days written notice) Regularly customers will lose track of when their contracts are set to expire and will miss their window of opportunity for canceling services before the contract automatically renews. Depending on the Carrier, Contracts can auto renew for the original term or for subsequent one-year intervals.
Businesses have to be proactively aware of their contract status and give proper notice to their existing carrier or they will face severe termination penalties for early cancelation. Termination penalties typically range from 50% to 100% of the remaining monthly recurring revenue through the end of the new term.
Tips to Avoid Auto-Renewal:
1. Know your contract end date! Some contracts become effective on the date of signature, some become effective at the date of installation. Read your contract to verify when the contract is actually effective in order to determine the end date. The only way to be sure of the exact terms and conditions associated with your telecom contract is to review the actual contract that you signed. Most contracts have specific language around early termination and auto renewals outlined in the term section of the agreement and there is additional language in the termination section. Some carriers make mention of additional terms and reference their website; often times the terms that are presented to the customer at the time of signing an agreement are only a fraction of the terms that govern the agreement. Also keep in mind, Carriers frequently change their terms and conditions so do not assume the original agreement you signed is the current auto-renewal & termination policy.
2. Don’t just Call, GET WRITTEN PROOF! You might think calling your carrier would be the first & easiest step toward finding out your contract end date. However, we’ve seen plenty of customers miss their opportunity because they took the Carrier Customer Care Reps word for it over the phone. Make sure to get written confirmation of your contract end date. We recommend sending a certified letter well in advance of the expected contract expiration requesting written confirmation of your contract end dates. If you’re unsure or need help with this step, feel free to call NetFarm and we can help you work through the various steps to identify your contract end date and when your contract is likely to auto renew.
NetFarm provides all of our clients with comprehensive on-going management & support for all of their telecom services. This includes help with Contract Management as well. Helping customers understand & track their service contract is one of the most important things we do. Our goal is to empower businesses by providing the necessary information so they can make the best decision possible. If you have questions with your current contract, please feel free to give us a call at 847-512-4949.