The Internet Code - Contracts & Billing - Fees

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TRANSCRIPT: Contracts & Billing - Fees Hello, and welcome back to the Internet Code video series. These videos were developed to provide an overview of Internet services. They are intended for customers that are Deaf, Deaf-Blind or Hard of Hearing. All videos have captions and voiceovers. This set of videos covers terminology commonly used by Internet Service Providers, or ISPs, in Canada. The definitions in these videos are intended as simple explanations of how Internet service works. They do not replace definitions used in CRTC decisions, or ISP contracts or written policies, as may be amended from time to time. Video 2 will cover Contracts & Billing - Fees. Customers are responsible for paying Applicable Fees and Charges based on their specific agreement or obligation. Appropriate fees that may be relevant include: Pre-service Fees Activation Fee / Installation Fee / Service Connection Charges Activation Fees or Installation Fees are one-time fees that may be applicable at the time of activation of services. The fee may be charged to the customer’s invoice at time of activation or upgrade. These may also be known as Service Connection Charges. Fees Associated with Identified Services Pay-per-use Charge A Pay-per-use Charge is billed to a customer when they use optional services that are not included in their plan. Pay-per-use charges are applied in addition to the usual plan charges. Overage Charge An Overage Charge is billed to a customer when they exceed the established limit for the use of Internet data in their monthly plan. The customer is charged an overage fee for the extra usage based on a rate identified by their service provider. Monthly Usage When a customer signs a contract with an Internet Service Provider, or ISP, their chosen plan will indicate the Monthly Usage included in the cost of their plan each month. This will typically indicate how much data they can use during a billing period before data overage fees apply. It is typically expressed in Gigabytes (GB). There are plans that offer unlimited data, in which case there are no monthly usage limits, as long as the customer complies with the service provider's Acceptable Use Policy or Fair Use Policy. Plans that do not have a usage limit can be referred to as "unlimited", "endless" or "infinite". Monthly Service Fees Monthly Service Fees Monthly Service Fees are charges that a customer will see on their monthly bill. Each service provider will identify all relevant fees on the bill. Minimum Monthly Charge The Minimum Monthly Charge refers to the amount that customers will have to pay for Internet service each month, even if they do not use optional services or incur any additional fees or overage charges. This charge may be subject to taxes as set out in the agreement. For example, this is the amount that a customer has agreed to for their basic service, before any additional use. This amount will be clearly identified in the service agreement. Monthly Recurring Charge, Non-recurring Charge Monthly Recurring Charges are charges a customer will see on their bill every month, while Non-recurring Charges or One-time charges are only one-time expenses. Monthly Device Charge / Equipment Financing / Device Balance A Monthly Device Charge is the amount of money that a customer pays each month for the purchase of their subsidized device. This fee may be in addition to the minimum monthly charge fee a customer pays for service. Monthly Device Charge is not applicable to all internet service providers. This charge should not be confused with a monthly rental charge. This may also be known as Equipment Financing or Device Balance. Monthly Rental Charge A Monthly Rental Charge is the amount of money that a customer pays each month toward rental of any equipment such as a modem. This fee may be in addition to the fee a customer pays for service. Monthly Rental Charge is not applicable to all internet service providers or plans and if a rental charge is applicable it will be disclosed in the contract. Monthly Savings / Promotion / Discounts Promotions, discounts, incentives, and other time-limited credits/offers are various incentives that service providers use to make their offers more appealing to subscribers, financially or otherwise. These incentives may be offered only for a specific period of time and/or may have conditions associated with them. These incentives will be set out in the customer’s contract. End of Service Fees Early Cancellation Fee / Early Cancellation Charge An Early Cancellation Fee is the amount that may be charged when a customer’s service is cancelled before the end of the commitment period. The amount will depend on several factors including the type of contract a customer has, how much of the commitment period is remaining, and whether a device was subsidized at activation. The cancellation fee will be set out in the customer's contract. If a customer cancels service during the trial period, and complies with the trial period rules, the early cancellation fee is not applicable. Equipment Loss Charge / Non Return Fee / Non Return Charge An Equipment Loss Charge may be imposed when a customer either does not return Equipment which is owned by the Internet Service Provider, or returns equipment that has been damaged. This is also referred to as Non Return Fee or a Non Return Charge. Payment Late Payment Charge Late Payment Charges are billed to the customer when the balance from the previous billing cycle is not paid in full by the due date listed on the bill. Interest is charged on the portion of the bill that is outstanding, and added to the next bill as a late payment charge. Administrative and collection charges Administrative and Collection Charges are amounts owed to a service provider as a result of late, returned or rejected payments. Outstanding (Overdue) Balance Outstanding or Overdue Balance refers to the portion of a customer’s balance from the previous billing cycle that was not paid by the due date listed on the bill. Suspension / Disconnection Suspension Suspension refers to a temporary halt in service that can result from a lack of payment or reaching a pre-determined spending or usage limit. The customer’s account and contract remain in force during service suspension, and regular monthly charges may continue to be applied. Disconnection Disconnection refers to the termination of Internet services. Seasonal Disconnect / Seasonal Suspend Seasonal Suspend refers to a customer-initiated hold on service that is intended to be in effect for a specified period of time, such as when the customer travels. A smaller monthly fee may apply and there may be a reconnection charge; it varies by service provider. Service Reconnection Fee A Service Reconnection Fee refers to a fee that may be charged for the reconnection of services after being suspended for any reason.

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