Churn fee vs. Contracts

[Jared Yates]

Howdy,

Is there a reason why they have decided to go with this "Churn Fee" as
opposed to letting ISPs enrol users on a minimum term contract?

While I've been here in Australia (4 months going on 14 ;) I've
investigated getting broadband connected where I am staying. The real
stumbling block, apart from not knowing if I am still going to be based
here in 2 months time, has been the fact that most ISPs (usually)
require you to sign up for 6-12 months or pay some massive early
disconnection fee.

The ones that don't have contracts, have a setup fee of like $180 which
makes the 'monthly'[1] fee a bit steep if you're only in it for 3 or 4
months.

I guess the 'churn fee' is a bit like a setup fee you pay when you
leave, except for the fact that we are also likely to be paying setup
fees at the beginning as well :P


Cheers,
Jared


[1] ie. Actual monthly fee of around $40 + setup fee/no. of months
connected