Hello, my broadband and phone contract is ending early next month. The new contract has a steep price increase and is almost forcing me to move to another ISP. Due to the Covid pandemic and its associated consequences, I doubt I can arrange a new ISP before my new contract begins.
When and how do early termination fees apply after a new contract has started?
Any advice on this matter would be appreciated. Many thanks.
So long as you don't change anything about your package and don't seek a discount, then when a fixed term contract ends, you just flop onto VM's expensive 30 day rolling contract. So the price goes up, but you've no worries about giving them 30 days notice. I always recommend you get the new ISP installed and working BEFORE issuing VM notice, since this costs you an extra month's fees, but protects you against delays or faults on the new connection. And if the new connection's performance is unacceptable, you can cancel that in the cooling off period, owe nothing, and stick with VM.
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Not hard to answer. If you initially take out or renew a contract with any promotional period in it you will pay an ETF if you terminate that contract before the end of the promotional period. The earlier in the promotional period period you terminate the more the ETF you pay up to a maximum of £240. Not hard to see why. VM give you a discount on the basis that you will stay with them beyond the promotional period. They will make their profit when you start to pay the full contract price. Effectively they frontload the discount and recoup it later.