The new charge by BT Wholesale for ceasing an ADSL line at £33.75 (excl. VAT) has so far not proved to be popular. Entanet who have no direct retail market presence but sell broadband through a number of resellers has announced to its channel partners that it will absorb this new £33.75 charge.
In response to news that BT Wholesale is introducing a £33.75 (excl VAT) cease charge on broadband end users from 1 May 2007, leading voice and data connectivity provider Entanet has announced that it will be absorbing the cost to protect its channel Partners' interests.
BT Wholesale announced several changes to its pricing model for ISPs that use the Capacity Based Charging model (as Entanet does) and Usage Based Charging model, including a small reduction in activation fees. However, Entanet believes the introduction of such a charge for ceases could adversely affect its Partners, who would likely have no option but to pass on the cost to their customers. Entanet sees this as a negative differentiator for virtual ISPs who are already facing stiff competition from alternative service providers.Extract from Entanet press release
This new cease charge is only levied if you cease an ADSL service on your line, so, as long as people migrate between service providers, they should not ever see this charge. The times when it will be levied are when ceasing the ADSL service prior to moving out of a property, or in situations where you fall behind with payments to a broadband provider and they cease your broadband.
The new cease fee will probably only be raised for one in ten broadband lines, so it is possible for a service provider to absorb the costs by not matching the full reduction in activation fee by the service provider. One thing to watch out for as a consumer is providers adding an admin fee to the cease charge, which has happened in the past with things like the activation fee. Therefore, it is wise to check any new contract so that you are aware of the costs of moving home as well as migrating between providers.