Cancellation fees - how they differ between providers

Internet service providers offer a range of contract lengths, which usually vary between 1-month, 6-month, 12-month, and 18-month and 24-month contracts. Broadband companies will often throw in a reward for signing up to a longer plan, which is usually either a lower setup fee, a discounted modem or sometimes they’ll throw in a standard modem for free.

Just as with mobile phone plans, there will be a disconnection or cancellation fee should you cancel your contract. Before you consider paying out your contract, remember it is also worth asking your provider if they offer a relocation fee instead to relocate your current plan to a new address. If you are changing plans because you are finding that the download quota doesn’t suit your usage, you will not generally need to start a new plan, but just move up or down in usage. You can organise this by contacting your internet service provider.

If you are cancelling your service because you wish to sign up with another internet service provider, you may want to consider the fast transfer service (churning) instead of cancelling your contract.

Below we have provided a comparison of the cancellation fees which are quoted by each of the major internet service providers. The prices are current as of August 2010, but you should confirm any fees with your internet service provider before signing up to a new contract.

Exetel

Exetel offers a very cheap $100 cancellation fee for all of their broadband plans, regardless of how far into your contract you are. If you’re already out of contract, there is no cancellation fee, however because you pay your monthly account in advance, this payment will not be refunded back to you. If you are churning to a new provider, it is best to plan the churn to occur on the second last day of your monthly billing cycle.

TPG

The cancellation fee for all TPG ADSL plans is the same. You will need to pay out the remaining cost of your plan up to $350. So if you are on a plan that is $49.99 a month and you have two months remaining of your contract, you will need to pay $99.98.

Netspace

Netspace charges customers who are still within contract a cancellation fee of 50% of any remaining monthly fees, plus a network termination fee of $65.

iPrimus


All broadband customers will need to pay out the remaining cost of their broadband service, including all service, equipment and set-up costs. If you still have a substantial period remaining on your contract, you may want to reconsider cancelling your iPrimus service!

Dodo


If you are with Dodo for your broadband service, you will need to pay out the remainder of your contract up to $400.

iiNet


iiNet offers their customers a very cheap early termination fee of $69, plus any discount the customer received on their modem.