No Contract Required
February 2, 2014 1 Comment
FACT: Direct Communications in Eagle Mountain does not require a contract or term commitment .
Any new customer may sign up for Directcom Broadband service without a contract. If you prefer the freedom of no contract, or month-to-month service, all that is required is a simple $75 broadband installation fee. However, new customers who commit to an easy 6-month contract term with their service, can enjoy free installation, a 30-day no risk guarantee, and the peace of mind of knowing that they can cancel service anytime, with just a $25 early termination fee. What we find is almost 99% of customers in Eagle Mountain prefer service with a contract and $0 upfront, so we continue to offer that option.
Contrary to some claims by our competitors, we actually have never required a contact for internet customers. New customers could always choose to forgo a contract term. However, very few people ever chose to sign up without a contract because we have always offered free installation with a term commitment. We do this because a term commitment lowers our risk, or cost, of installing our premium service. Our installation is very customer-friendly, thorough, customized, and hands-on: we do all the work for you and no technical knowledge on your part is needed to activate your service. We send a local tech to your house, who mounts the fiber electronics on your home, runs Ethernet cable inside to your network hub, router, or a location of your choice, then activates your home router, sets up your home wireless router with security if you desire, and he will not leave until you are satisfied that your new fiber internet connection, and the connection to all the devices in your home, is working to your satisfaction. We follow up with a satisfaction survey. In the old days we required a $185 broadband installation fee if new customers did not want to sign a 1-year commitment up front. This was largely dictated by FCC requirements for telecommunications and broadband companies like us. Recently, these regulations have changed to give us more leeway in deciding how to set contract and installation terms.
Since early 2013, our policy for new internet customer installs has been that no contract is required, and we only require a $75 broadband installation fee if a new customer wants to be free of any commitment.
For customers who know they will be in their homes for a while, and are willing to sign a 6-month commitment, we will continue to offer FREE installation. Plus, we of course will also give you the first month free if you are using our refer-a-friend program, or in other words, if you were referred by a friend.
One qualifier, which will probably never change since it is set by the State of Utah Government, is that regulated telecoms like us must charge a $25 phone activation fee for new accounts. This has always existed as part of the Utah State Public Utilities regulation. This is separate from broadband installation fees.
Why are we doing away with contracts?
Over the past couple of years, some of our non-customers in annual focus groups have told us that they didn’t like contracts. Many people did not want to sign long-term commitments various reasons—some did not feel secure in their employment, and feared they might not be able to pay for service in a few months; many said they were looking to move out of Eagle Mountain sometime in the coming year; others said they just don’t like contracts as a matter of principle. We agree—people should stay with us because we offer the best, most reliable service in Eagle Mountain, and not because we have them locked into a contract. However, until recently, our hands were essentially tied because of NECA and FCC regulation.
In June of 2012, we tested this feedback from non-customers, and during Pony Express Days, instead of offering a sweet electronic toy like an Xbox as a promotion, which would also require long term commitments, we simply offered free installation with no contract and no obligation, and a couple of months of free service so they could demo our superior internet product risk free. While the number of new customers taking advantage of this promo was not quite as high as the years we offered a free Xbox or Wii, the results were still good, and, even more encouraging, as we tracked these customers over the next following months, we found they were just as likely to stay with us than people who had signed a contract. They stayed because they liked the service and found it to be better than any competitors service in Eagle Mountain. This is what we want.
So, we decided to make this no-contract offer our general policy, with a few adjustments. We want to make it easy for people to switch to us. We want to be easy to do business with. We hope that a $75 install charge, with no contract required, would be low enough for most homeowners in Eagle Mountain to afford without requiring anyone to go without shoes for the month. $75 does not nearly cover our cost for an install—we have to pay for the tech, the truck roll, and most expensive, the new fiber electronics to be installed on the home. Together these amount to several hundred dollars. However, we feel confident that once a customer has experienced our faster streaming fiber optic broadband, they will never go back to a wireless internet service provider. Our customers tell us: You simply can’t go back from fiber.
In the past, in order to make it financially viable to give away free electronics as a promotion, like an Xbox, Wii, AppleTV or Kindle Fire, we have with special promotions asked new customers to sign 2-year contracts to get a fantastic free promo item. Many people who previously said they disliked contracts suddenly didn’t mind them as much. They get a free Xbox, and we get a new customer while lowering our risk–it’s a win-win. In the past couple of years, as the general public has become more tech savvy and educated, the very idea of fiber has become more powerful than any promotion or toy we could offer, so we have limited our promotions and relied simply on our premium value proposition. So, contacts associated with promos are a thing of the past too.
Of course, we expect most people will still choose the no upfront cost, free install, with one month free, that comes with a 6-month commitment. This is not a promo—this is our everyday pricing. But, for Eagle Mountain residents who don’t like contracts, this $75 upfront option is built for you, and we hope to see you soon. Haven’t you ever wanted to know what your internet experience could be over fiber optic cable? Try it—you will like it.