RCN Increases Rates, Says You'll Have To Pay A Fee To Downgrade

from the now-that's-just-nasty dept

Wed, Apr 22nd 2009 6:48pm — Mike Masnick

We've seen all sorts of nasty fees and sneaky tricks by broadband companies to try to get you to pay more, but Broadband Reports highlights how RCN not only raised its rates, but then told customers it would cost them a "$5 downgrade fee" to switch their plan to a less costly option in response to the higher rates. And there are people out there who still wonder why so many subscribers hate their broadband providers?

Filed Under: broadband, downgrade, fees
Companies: rcn

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tim, 22 Apr 2009 @ 8:50pm

isnt there any kind of legal condition connected to these contracts, so that if the provider changes their rates/caps/whatever, it isnt the deal that the user signed up for, so they should have the choice to void the contract at that point?
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shawn, 22 Apr 2009 @ 11:36pm

Not if RCN put in a clause that said they reserve the right to change the terms of the contract without prior notice...

which most companies do.
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- Anonymous Coward, 23 Apr 2009 @ 5:47am
  
  Re:
  and that would be inconscionable
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  - Anonymous Coward, 23 Apr 2009 @ 6:20am
    
    Re: Re:
    ...and thus likely the case.
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- TheStuipdOne, 23 Apr 2009 @ 7:44am
  
  Re:
  Man I shuld do that ... make a contract look AWESOME to whoever signs it but include that clause.
  
  Then once they've signed change the terms so that their childrem becomes my slaves, I get to take all of their posessions, and the signee has to become a mime.
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Anonymous Coward, 23 Apr 2009 @ 7:54am

I know in Canada you cannot put clauses like that in any contract. If the contract is subject to change a notice must be sent, and if the user disagrees to the changes they can change/cancel their service with no fee incurred...But that is in Canada, not your country.
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Elliot Ross, 23 Apr 2009 @ 11:54am

contract
@anon -

At least it used to happen in CA -Rogers Communications got some bad press a few years ago - we called it "Negative Option Billing" throughout the press.....
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TechNoFear (profile), 23 Apr 2009 @ 9:29pm

Taking Lessons from Telstra
Looks like US telecoms have been taking lessons from Australia's Telstra.

Probably after talking to Sol Trujillo and his Amigos (now he has taken the Au$3 mill golden handshake to go away).

Make the user sign up for 12 to 24 months contracts and have to pay a huge fee to cancel.

On entry level plans put a 300Mb/month cap (up + down) and charge Au$150 / Gb extra.

Then exclude Telstra 'pay to use' content from the quota to encourage use of Telstra's expensive walled garden.

This catches out new to broadband users and leaves them with no way out.

Telstra also refused to fix faults on copper lines and installs 'pair gain' systems (on which only Telstra can supply access) to ensure it maintains a customer base.
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Ugh., 24 Apr 2009 @ 4:53pm

Sonera / TeliaSonera in Finland
Here in Finland our largest carrier charges 30 euros if a customer wants to downgrade his/her internet connection.

This pricelist has been in effect since May 01, 2008:

http://www.sonera.fi/Laajakaista/Hinnasto/Liittymien+ja+palveluiden+toimenpidemaksut

"Li ittymän nopeusluokan nosto" = Raising your speed = free
"Liittymän nopeusluokan lasku" = Lowering your speed = 29,90 euros.

And if you want to close your connection temporarily for 1 to 3 months, they will still charge 14,99 euros a month - for not using it at all!

Of course they also add 1 euro for each bill they send you via mail - even when quite many customers don't even have the ability to receive e-bills.
Many don't even want those but prefer the old dead trees version - and pay for it.
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Grog29, 19 Jun 2009 @ 3:05pm

Renegotiate
I plan on turning my modem into the local office on the last day of the current billing cycle. People have had it with corporate greed and increased rates for what they are calling "a new and exciting bill format"!
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