On 24 Sep 2004 in uk.telecom.broadband, "Tiscali Tim" wrote:
>Is there an activation charge? If not: 1) it's effectively cheaper
>than PlusNet which *does* have an activation charge
Apparently (from ADSLguide), which has an item about it:
"Activation costs £19.99 for people who do not already have ADSL. If
you do have ADSL then it appears that migration to Virgin is free. A
£9.99 Virgin.net Broadband starter kit is also available, which
includes a Speed Touch 330 USB ADSL modem and 2 micro-filters."
So it is much cheaper but not completely free.
>2) how do they recover the activation charge which *they* have to
>pay to BT if *you* cancel after one or two months?
This query over "free activation" seems to go round and round - Plus
passes the charge on, like several other ISPs. If you remember 2002
(I think) Pipex put 2 million quid on one side to cover activations,
for the first 40,000 customers. Clearly some ISPs just absorb these
fees and treat it as a way to get a customer. Virgin is exceptional
insofar as them not apparently charging an admin or cancellation fee
if someone closes their account. They make a big thing about having
no 12 month contract - see <http://makeashorterlink.com/?X22822E59>
and presumably they have the cash to push this (though clearly they
are not throwing 50 quid at each new customer, but around 35 as the
cost is not fully covered unless migrating to their service).
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