By: MarkJ - 10 February, 2012 (12:22 AM)
Direct Save Telecom UKDirect Save Telecom, a consumer orientated phone and broadband provider, has chosen to start moving away from long-term contracts because they make "consumers feel trapped". Instead the operator has decided to combat the problem by introducing rolling 28 day contracts for its fixed line and superfast broadband packages.

Direct Save Telecom's CEO, Stavros Tsolakis, said:

"With the state of the economy as it is, and the ever changing job market, people do not want to be tied into a long-term telecoms/broadband contract. They are being forced to be flexible in their working lives, so they need the same flexibility from their telecoms provider. We give this to them. No other provider offers this type of contract.

The large telecom companies offset high acquisition costs and failing growth with forced customer retention. They do this by tying customers in to multiple services with a longer contract. Customers feel tied down and stressed - as any changes to their lifestyle will not lead to changes in their telecom bill. No matter what, they are stuck with their supplier and their monthly bill.

This is not the case with Direct Save, because our customers are not locked in a long term contract we have to deliver good service and low prices every month to ensure they want to stay with us."

However the claim that "no other provider offers this type of contract" seems quite wide of the mark. Many smaller ISPs and a few bigger providers have been offering monthly style contract options for years and others have a 30 day notice period or similar for cancellations (i.e. basically the same thing).

Meanwhile a quick check of DST's website shows that anybody who cancels their service within the first 12 months will be charged a £50 disconnection fee, which is not exactly a rolling 28 day contract but they do at least state it clearly (Exposing Hidden and Confusing Broadband ISP Charges). Perhaps consumers will still feel trapped after all.
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Comments: 3

asa logoDeduction
Posted: 10 February, 2012 - 1:53 AM
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quote"Meanwhile a quick check of DST's website shows that anybody who cancels their service within the first 12 months will be charged a 50 disconnection fee"

Not a rolling 30 day contract then.
asa logoNat
Posted: 10 February, 2012 - 11:20 AM
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Direct Save have had a 28 day rolling contract on all their deals for years. The 50 disconnection fee for the first 12 months seems to be new though.
asa logoCarrot63
Posted: 11 February, 2012 - 5:02 AM
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@Nat,

They've evidently taken a leaf out of BT's "hide the price increase" strategy then; bury your bad news by spinning it to make it look as if you're doing the world a favour.

Anything as bullish sounding as their press release always has a hidden catch in the small print.



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