The Life and Times of Seattle's Small Business Systems Consultant. Articles and advice on small business phone systems, phone and internet services, VoIP, and all things technology related.

Selkowitz Technology | Seattle's small business network and telecom consultant

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When businesses sign up for phone and internet service most assume its a straightforward service – but contracts can hide some nasty details which are important to check up front.

Contract Term and Renewal

Most carriers do require a contract term for service, what varies is what happens at the end of the contract term – some go month to month, some renew for a year, and some renew for the original term duration. Yes, you read that right – you can sign up for a 3 year term and at the end of that term be automatically renewed for another 3 years!

Pricing

Believe it or not, having a contract doesn’t guarantee pricing! In 2010 both Qwest and XO raised prices on customers in contract. XO fortunately gives people a 30 day window to leave, but also places the only notification on the 2nd page of the bill where few are likely to notice.

Unlimited Isn’t Always Unlimited

While the word unlimited may have the definition of “not limited, unrestricted, without qualification or exception…” many carriers use their own dictionary. Qwest for example defines unlimited long distance as 3000 minutes. Many “unlimited” long distance packages have restrictions on type of businesses that can use unlimited service, maximum minutes used, etc. If you violate the policy carriers may cut off service, change your plan, or even retroactively bill you on a per-minute plan.

For internet service many carriers are instituting bandwidth caps and charging overage or slowing service after a (sometimes undefined) bandwidth utilization. Nearly every carrier has a fair usage policy, some are more restrictive than others.

Uptime and Repair Time

Every business wants their phone and internet service to work, but services fall into two categories: SLA’d services and “best effort.” With an SLA the carrier promises uptime, performance, and repair time. Best effort services just says the carrier will try to make things work. Needless to say its important to know what kind of service you’re getting and make sure it matches your expectations.

Surcharges

Surcharges may not be on the quote or the contract, but ask about them anyway. Surcharges are different from taxes as they’re not state or federally required but rather additional charges the carrier has levied. Surcharges can easily add 10-20% to a bill – leading to unpleasant surprises one the first bill arrives.

Bottom line: make sure you’re picking a good carrier, know the terms, and don’t be afraid to request an addendum to the contract if you like the carrier but not a specific contract item.

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