Long-term contracts and hefty termination fee is a concern for most internet users in the USA. It is a common phenomenon to sign long-term contracts for local services like an internet connection, cable TV, or home phone service. Most internet service providers require their customers to sign a long-term contract in return for a fixed monthly rate during the tenure of the contract.
Benefits of Long-term Service Contracts
Long-term service contracts are seen as a benefit by some users who argue that internet users save on their monthly bills due to lower monthly charges and locked-in rates. Once a user signs an internet service contract, the recurring monthly charges can not be increased by internet providers during the contract tenure. Additionally, the monthly internet charges are also lower as compared to a no-contract internet plan.
Internet service providers benefit from such contracts as they know that a customer who signs a contract will have to be their customer for a long period of time. Therefore, they try to influence their customers to sign long-term contracts for added benefits like discounts on monthly service charges and some free offerings. For instance, some internet service providers offer their internet devices for free or provide free installation once the customer agrees to sign a long-term contract.
Constraints of Long-term Service Contracts.
Service contracts offered by most internet service providers can have a duration of a year or even more in some instances. In case the internet user is not satisfied with their internet service provider and chooses to change providers then they need to pay a hefty early termination fee. The other scenario in which such contracts become a problem is when an internet user is relocating. They are obligated by the contract to pay the early termination fee to end the contract and then get a new internet connection at their new location.
These contractual obligations often bound the internet users to continue using an internet service even if they are not satisfied with the services offered by their internet provider. Although other local providers could be offering better plans and services in the area, the user bound by a contract needs to pay the early termination fee if he decides to switch providers.
No-Contract Internet Providers
Having these concerns in mind, some internet service providers are offering no-contract internet service. Such providers allow you to pay on a monthly basis without a long-term commitment or a binding contract. Additionally, you do not need to pay a termination fee if you decide to switch providers or transfer your internet plan to a new location. Here is a list of some of the leading no-contract internet providers:
- Spectrum Ultra Speed Internet
- Frontier Internet
- AT&T
- CenturyLink
No-contract internet providers are seen by most internet users as a great relief but there is always a downside. These providers are offering their services without a long-term contract but they are not offering their services at the best price. Since the internet provider is forgoing the long-term contract, they often charge a premium price for their monthly services.
This is why no-contract internet providers are also offering internet plans with contract requirements. Therefore, an internet user must weigh the pros and cons of a no-contract internet plan before actually contacting a service provider in their area. In case, the internet user is sure about their preferred internet service provider and truly believes that the provider will offer the best service then it is a better option to sign a contract to avail locked-in pricing and the cheapest monthly rates. On the contrary, if an internet user has plans of relocating in the future or is not sure about the internet offered by the chosen provider then it is a better option to opt for a no-contract internet plan.
