We can all agree that business telecommunications contracts are a headache to deal with and each telecom provider plays by different rules.  If you have trouble understanding the fine print, here are some things to look for and a guide to canceling your contract. 

 

The 90-day Rule & Automatic Renewal

Typically, large telecommunications providers demand that they receive correspondence stating the ‘intent to cancel’ within 90 days of the contract term end date.  If you cancel 90-days before the contract end date then you will receive an early termination fee—possibly on each number, or on the account as a whole.  If you do not state your ‘intent to cancel’ 90 days before the contract end date then the contract will auto-renew for at least a year maybe more.

So what do you do?

1.  Obtain a copy of your contract & review the termination section and required actions.  You may get different answers from each customer service representative you speak with, so it is important to read the contract terms yourself. 
2. Find out the exact date services began.  The date on the signed agreement doesn’t necessary mean the start date of the contract, so it is important to find out the day the services actually began and use that date as your start date.
3. Add reminder to your calendar to call and write your carrier 120 days before the contract term date expressing your desire that you do not wish to auto-renew the contract.  You should also mention that you would like to go on a month-to-month agreement basis and when/if you choose to cancel or port out your numbers there will be no penalty.
4. Obtain confirmation that they’ve received your correspondence and that it has been notated on your account.  This is important because any rep you speak to will be able to see the notes and honor those requests.

How to combate confusing contract terms:

 

I’ve seen telecom contracts that say the customer’s letter of intent must include a) the specific services to be disconnected and b) requested effective date of the disconnection.   

 

This verbatim is confusing because if you are porting out your phone numbers, carriers only allow a 30-day window for port requests—meaning, you must submit your port request within 30 days of the port out date.  Therefore, if you are porting out your phone numbers with the intent to cancel services, then there is no way you can provide a specific “effective date of disconnection” 90 days prior. 

 

The good news is due to FCC regulation, it is illegal for telecom companies to hold customers’ numbers by denying them the ability to port out, and since the account must be active to port numbers, the telecom carrier cannot force you to provide a specific disconnection date.

 

Your sample ‘intent to cancel’ letter: 

 

Dear Telecom Company,

 

This notice is to inform you of [company name], [Account #] intent to disconnect services at [location] on or shortly after our contract end date of _________.   Our contractual agreement shall not be auto-renewed at that time and shall be placed on a month-to-month service basis until further notice.  We cannot provide a specific termination date, as we plan on porting our numbers to a different carrier and that date is to-be-determined.  As such, our account must stay active, and free of any pending orders, which include future account closure/disconnection orders.   Any numbers ported-out or services cancelled after our contract end date shall not result in any penalty or disconnection fees.

The intended disconnection of services include:

--{be specific here—your list should all services in question and include each 10-digit phone number}

Kindly confirm receipt of this letter and that my requests will be honored.

 

Need further assistance?

 

If you need further assistance with reviewing contractual telecommunications agreements, contact ACC Telecom- we’re happy to help!

 

If you need assistance with reviewing your telecom agreement and/or would like to transfer to a new carrier, reach out to ACC Telecom headquartered in Columbia, MD for help. Since 1979, they have been providing a wide variety of bulk telecommunication solutions, including VoIP phone service & phone systems to commercial clients nationwide. With their 24/7 emergency service and 90-day customer satisfaction guarantee, you can rest assured they have your best interests in mind. To learn more about their offerings, visit the website or call (410) 995-0101 today.