A big concern with UFB connections to date has been the somewhat onerous early termination charges (ETCs) when families move or abandon their connections within the initial 12-month contract period. All fibre providers (local fibre companies) have the ability to charge ETCs under the terms of the Wholesale Services Agreement with Retail Services Providers (RSPs), SNAP in this case. Typically the ETC has been calculated at the full cost of the remaining months of service under the 12 month contract; this means that a family moving after 3 months would be required to pay the remaining 9 months in full.
SNAP has negotiated for this charged to be waived for Computers in Homes families, at least to start with. They can’t guarantee this won’t change in the future, but at least we have a good starting position.
This means we have a more favourable situation for UFB connections than we currently do with DSL connections, where we incur an ETC of $99 (incl GST) when families break their connections during the first 12 months.