UBS churn fee

[Mark Cranness]

This doc:
http://www.telecom.co.nz/binarys/ubs_faq1.pdf
... clarifies the churn fee, and I think it is now clear that the churn fee
is NOT paid to the ISP that looses the customer.

[paul]

Post by Mark Cranness
http://www.telecom.co.nz/binarys/ubs_faq1.pdf
... clarifies the churn fee, and I think it is now clear that the churn fee
is NOT paid to the ISP that looses the customer.

When I interviewed Telecom about this they confirmed that the churn fee
would be paid to Telecom regardless of which ISP was doing the taking
and which ISP was doing the losing.

So if a UBS customer leaves Xtra for Orcon, Orcon pays Telecom a churn
fee. If a UBS customer leaves Ihug for Orcon, Orcon pays Telecom a churn
fee.

I've had it described to me as a book-keeping cost on a par with
establishing a new connection for a customer who moves or installing a
connection on a customer premises. While I can see the cost involved in
a technician coming out to put the kit in place, I fail to see how
Telecom needs to spend anywhere near $100 in letting an Ihug customer
move to Orcon or whatever.

Cheers,

Paul Brislen

[Craig Humphrey]

I suspect part of the churn fee is to make sure that Telecom makes a buck,
regardless of who is stealing customers from who...

As for $100 a pop... Perhaps the Xtra/JetStream/Telecom (HelpDesk group of
the day) people aren't able to make this change, so it needs to go via a
"technician", which means you have a handling fee plus the X seconds of time
it takes for the tech to locate the user (by phone number I guess) and
select a different ISP to route their traffic to. (Please tell me it's that
simple... If not, perhaps it's time someone wrote an app to make it that
simple...)

Interesting to note that if an ISP converts it's existing JetStream
customers over to UBS, and runs out of "Churn credits", they then have to
start paying Telecom... For existing customers!

Just my 2c.
And expressly not the view of my employer.

-----Original Message-----
Sent: Wednesday, December 01, 2004 8:06 PM
To: Mark Cranness
Cc: ADSL List
Subject: Re: UBS churn fee

[snip snip]

When I interviewed Telecom about this they confirmed that the
churn fee
would be paid to Telecom regardless of which ISP was doing the taking
and which ISP was doing the losing.
So if a UBS customer leaves Xtra for Orcon, Orcon pays
Telecom a churn
fee. If a UBS customer leaves Ihug for Orcon, Orcon pays
Telecom a churn
fee.
I've had it described to me as a book-keeping cost on a par with
establishing a new connection for a customer who moves or
installing a
connection on a customer premises. While I can see the cost
involved in
a technician coming out to put the kit in place, I fail to see how
Telecom needs to spend anywhere near $100 in letting an Ihug customer
move to Orcon or whatever.
Cheers,
Paul Brislen