Policy and Code of Practice for Early Termination

Definitions

Application Form means the application form, service application form or order form relating to the provision of the Services provided by Interface Advantage Limited (IAL) from time to time and covered by IAL terms and conditions.

Billing Account means the account opened by IAL in the name of the Customer upon creation of the Contract and relating to the Services

Client or Customer means a person or company whose Application Form is accepted by IAL

Contract means the contract governed by the IAL terms and conditions, made between IAL and the Customer created upon acceptance by IAL of the Service Application Form.

Early Termination means cancellation by a Customer, (directly or by Indirect Cancellation) of a contract for Services subject to one or more of the following;

1. Within the Initial Term
2. Within any subsequent Renewable Term following the Initial Term
3. Without providing notice as may be specified in the Service Application
4. Where a Customer has failed to meet any Minimum Annual Commitment spend agreed as part of the contract and detailed in the Service Application.

IAL means Interface Advantage Limited which expression shall, where the context so requires, include its successors and assigns and any Associated Company thereof.

Indirect Cancellation means that Services will be deemed to have been cancelled if the Customer places an order with another supplier that results in the transfer of Service/s or a material part of a Service from IAL to another supplier.

Initial Term a minimum or initial term in respect of each Service and or piece of equipment commencing on the Service Commencement Date. Such period shall normally be detailed on the Service Application and will be deemed to be 12 months in the absence of any contrary provisions in the tariff schedule or Application Form.

Minimum Annual Commitment – means a minimum spend for each twelve month term from the Service Commencement Date, to which the Customer has committed and which is detailed in the service Application Form

Renewable Term means that upon expiry of the Initial Term (and each anniversary of the Initial Term) the Contract shall be automatically renewed, on the same terms, for a period equivalent to the original Initial Term, unless notice of termination has been provided by the Client. Such notice to be provided not later than 90 days before expiry of the Initial Term or anniversary of the Initial Term.

Service Commencement Date the date on which the service is ready for use or, if earlier, the date on which the Customer first uses the Service/s.

Service/s means the routing any or all of the Customer’s telecommunications, as detailed on the Application Form, by or through IAL under the terms of the Contract.

VOIP means Voice Over I/P services

 

Reasons for Early Termination Charges

Early Termination charges are for applied by IAL for the following reasons;

• To cover apportioned marketing and sales costs in acquiring new customers’ and orders.
• To cover the internal and external administration costs incurred in setting up a Billing Account, providing the Services, support and establishing billing and collections cycles.
• To cover any costs that IAL may incur, directly or indirectly, with our suppliers, (including billing, network, service & equipment providers) that result from early terminations by our Customers.
• To recover discounts enjoyed by Customers specifically because they have committed to an Initial Term and /or Renewable term and/or Minimum Annual commitment.

Early termination charges are NOT designed to prevent Customers from changing Services or suppliers and we would always prefer to work with our customers wherever possible to avoid Early Termination and any associated charges

Early Termination charges

Unless otherwise stated in the Service Application, the Early Termination charge applicable will be as detailed below and mainly dependent upon on whether the Services are charged for on a usage or rental basis as follows;

Usage based Charges: – The Early Termination charge shall be the equivalent to an average of 90 days of usage charges. Where 12 months of billing is available the average will be calculated from the previous 12 months of billing. Where less than 12 months billing is available, the previous 90 days will normally be used to determine the average spend. Note: the first month of billing (usually a partial month) or any period following the transfer of routing to an alternative provider may be excluded by IAL when calculating the average spend.

Rental & Recurring charges:– For line rentals, Licence rentals, managed & hosted services, managed VOIP services, Ethernet lines, broadband (and other services with recurring charges) the Early Termination charge shall be equal to the outstanding charges payable until the expiry of the Initial Term (or appropriate anniversary of the Initial Term where a Renewable Term applies).

In all cases, any discounted or deferred one off, installation, project or configuration charges will become payable in full (at their undiscounted rate) upon termination prior to the expiry of the Initial Term.

Other Charges

Other charges as specifically detailed in the Service Application may apply in addition to the above.

Termination prior the Service Commencement Date.

IAL reserve the right to apply an Early Termination charge in the event that   Service Application/s and orders placed by a Customer are cancelled prior to the Service Commencement Date. Such charges will comprise a £50.00 administration charge plus a charge dependent upon elapsed time between order and cancellation, as detailed in Table 1

Table 1

In addition to the charges in Table 1, IAL reserves the right to pass on to the Customer any third party supplier costs incurred for post order cancellation including, but not limited to, minimum terms, site surveys, initial network planning, engineering work and cabling.

Minimum Annual Commitments

IAL additionally reserves the right to levy charges in the event that the Customer’s spend levels fall below any Minimum Annual Commitment threshold that has been agreed (and specified in the Service Application) as at the anniversary of the Service Commencement Date. The maximum level of this charge will be equivalent to the Minimum Annual Commitment minus any charges incurred by the Customer up to the anniversary.