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story category Qwest's 'DSL For Life' a Good Deal?
Two year contracts emerge to reduce customer 'churn'
(old news - 09:35AM Friday May 18 2007)
tags: dsl · prices · competition · business · cable
A local Minnesota paper explores whether Qwest's DSL for life deal is really a deal. The promotion, which we first mentioned last year, offers customers a fixed discount DSL rate for life, provided they sign a two-year contract. In the past, our readers have noted that users can usually renegotiate their rate at the end of a one-year contract, making it questionable whether a two-year contract is really necessary. Obviously, there's also a question of whether prices will drop while you're "locked in" to a price that someday won't seem like a bargain. The early termination fee for canceling the service is $200.

The promotion, aimed at keeping customers from migrating to Comcast or other options, has been a big hit according to Qwest. Our users note that Comcast has also been offering customers two-year contracts in limited areas. Users can get an introductory $99 triple play deal for the length of a two-year contract, with a $150 early termination fee.

The Consumer's Union isn't impressed by these new contracts. "Cancellation penalties are anti-competitive and deprive consumers of the benefits of competition in the markets where there is more than one broadband provider," says Jeannine Kenney, a senior policy analyst at Consumers Union. "Most companies like this just don't go down this road," says another rep. "This is a business where the rules are changing virtually day by day, so to offer a lifetime guarantee under those circumstances is doubly troubling."

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Forums » Qwest's 'DSL For Life' a Good Deal?
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openbox9

join:2004-01-26
Navarre, FL
·AT&T Southeast
·Mediacom

Contracts

If the service doesn't require installation or expensive equipment or include a SLA, contracts usually don't benefit the customer. Of course Qwest/Comcast are going to lock in consumers if they can...so would just about every other service-based business in existence.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: Contracts

The benefit for the consumer is that they get 1.5M for $27/month or the "up to" 7M for $37/month with no price increase after the end of the contract.

The benefit for Qwest is that they're likely to keep that customer (and their POTS service) for 2 years.

It boils down to this- if you think you might want to switch providers in under 2 years, don't take the deal.
gworkman7

join:2005-10-18
Vail, AZ
·magicjack.com
·Qwest.net
·Broadvox Direct

I signed on last year. I use DirecTV. If I wanted to use a similar service via Cox, I would pay $20.00/month more. I'm at 6/768 for $34.99. Through Cox, I'd pay $54.95/month for 7/512 and would have to live with their blocking of whatever ports they choose. The only event that would make me drop Qwest is if I move and couldn't get their service. That issue is covered under the contract. Service in my area has been outstanding. I had an issue when I first signed up. Tech was here within 4 hours, cleaned up the wiring mess outside and I haven't had a problem since.

Who knows what advances may happen, but 2 years is nothing. Some of my clients are still stuck at 1.5/384 which they've had since '99 because of the distance to the C/O.

MrMoody
Liberal Capitalist

join:2002-09-03
Smithfield, NC

Obsolescence

The rate you get now might be a real steal in 10 years - unless all your neighbors have 20x your bandwidth and you're still stuck in the Bronze Age unable to use any of the new services.

en102
Canadian, eh?

join:2001-01-26
Valencia, CA

Re: Obsolescence

I agree... this will make things similar to people using dial-up or analog cell phones... eventually the company won't want to support it, and will shove people off.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

said by MrMoody See Profile :

The rate you get now might be a real steal in 10 years - unless all your neighbors have 20x your bandwidth and you're still stuck in the Bronze Age unable to use any of the new services.
I don't think anyone really expects that they'll be using the same 1.5M service in 10 years. The point is that the promo rate doesn't go up at the end of the contract as is usual with competetors- particularly cable companies.

There are a LOT of people out there who just want to be able to surf the web and e-mail while not tying up a phone line. Getting a good price without having to worry about what it'll be at the end of the promo period or contract is pretty attractive to a lot of people- who wants to switch services every year or two after their contract expires?

ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA

How about BETTER SERVICE/VALUE

To reduce customer churn.

You see long term contracts where the service sucks so bad you have to enslave subs to keep them (eg cellular).

Mactron
el Camino Real
Premium
join:2001-12-16
CM94sv

Reduce Churn...

Want to reduce Churn ?

Provide as advertised On Time, Functional product(s)/service(s).

Of course that would put the burden on the CableCo, TelCo instead of the customer. Hmmmm...
--
If only the Verizon CSRs worked this well.

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast


edit:
May 18th, @10:06AM

I wouldn't sign one; but have no problem with the offer

No one is forced in to signing a deal like this. I myself wouldn't sign a deal that locks me in to a service, but I see no reason why they should be prohibited from being offered. "Buyer beware" is something that those who love nanny government should learn to embrace, instead of ever more calls for legislation to cure every ill.
--
--
Internet News
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idjk

@embarqhsd.net


from:
TK Junk Mail See Profile

Re: I wouldn't sign one; but have no problem with the offer

said by TK Junk Mail See Profile :

No one is forced in to signing a deal like this. I myself wouldn't sign a deal that locks me in to a service, but I see no reason why they should be prohibited from being offered. "Buyer beware" is something that those who love nanny government should learn to embrace, instead of ever more calls for legislation to cure every ill.
Ditto!
wstwrdho

join:2007-03-15
Riverton, UT
·Qwest.net

Contract commitment?

Maybe I'm wrong but I thought the contract locks Qwest into a cost and if the customer wants to change service levels it just negates the contract and a new rate is applied (maybe another price for life commitment). The customer commitment would be to remain a Qwest customer for the determined time frame.
But, someone who has done the price for life contract would know better.

Maxxxt
Peculiar Mental Twist
Premium
join:2001-06-12
Denver, CO
clubs:
·Qwest.net

It seems it might be worth it

I took the bait and signed up last year for the price for life 1.5/896. It was a two year contract for me, and lifetime for Qwest.

So if prices are higher for everyone else in 3 years it was a good deal, if they are higher in 5 years..10 years..it was a good deal.
If prices drop and service increases dramatically in 2 years..I can drop Qwest and go wherever I want.

Odds are in 3 years, service will be about the same price but much faster. So I'm willing to wait and find out.
Of course things like the company not even being here in 5 years that worry me..lol

needforspeed59
Cruise Ship Just Passing Through

join:2001-05-02
Glendale, AZ

Read the Fine Print

I looked into this deal. On surface, it seems great. But a $200 penalty? C'mon! They do not state it in the fine print. Qwest says "early termination fees apply." You have to call and pry it out of a sales rep. How many customers are getting locked into this deal without knowing the penalties. Buyer beware? How is that in the "spirit of service"? Also, if the customer changes something on their account like trying to drop their phone service for a competitor, guess what? Price for life disappears! Qwest is betting the customer will break a loop-hole rule during the 2 years and then Qwest can "Jack the Price" like they claim cable companies do.

Technology changes fast. WiMax, satellite, cable, etc. Customers should not be locking into something for 2 years.
--
Of all the people I know... you're one of them.
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: Read the Fine Print

said by needforspeed59 See Profile :

Qwest is betting the customer will break a loop-hole rule during the 2 years and then Qwest can "Jack the Price" like they claim cable companies do.
Does your tinfoil hat chafe much?

Most people don't move or change service providers every year.
Jonbo298

join:2004-01-12
Council Bluffs, IA

said by needforspeed59 See Profile :

I looked into this deal. On surface, it seems great. But a $200 penalty? C'mon! They do not state it in the fine print. Qwest says "early termination fees apply." You have to call and pry it out of a sales rep. How many customers are getting locked into this deal without knowing the penalties. Buyer beware? How is that in the "spirit of service"? Also, if the customer changes something on their account like trying to drop their phone service for a competitor, guess what? Price for life disappears! Qwest is betting the customer will break a loop-hole rule during the 2 years and then Qwest can "Jack the Price" like they claim cable companies do.

Technology changes fast. WiMax, satellite, cable, etc. Customers should not be locking into something for 2 years.
Please...as said above remove your tinfoil hat. I work in Sales/Billing and its required we tell people the ETF price. Granted, some may not. But if they are monitored and are caught not saying it, they fail their QA score.

Anyone that wants the offer or requests it, I explain the basics to them. The ETF. Length of agreement. The valid and non-valid reasons for breaking the contract.

Valid reasons are if you move and DSL is not available in your area, if your name is on the bill and you happen to die during the agreement.

Non-Valid is if you just want ot cancel without a "Valid" reason for doing so, change responsibility on bill and its not death related, or if DSL is completely disconnected due to non-payment.

Sounds reasonable doesn't it?
fiberguy
My views are my own.
Premium
join:2005-05-20

Re: Read the Fine Print

... all of what you say is all good and dandy, but there is one thing that most people forget these days, or are simply just ignorant.

Terms don't kick in, typically, for 30 days of having the service in order to try it and cancel the service if it doesn't meet the needs.

During that time, people receive the terms and conditions in writing to the offer.. usually in writing and or in electronic form. People tend to think that advertising IS the contract which is far from the truth. So either people in this generation and day are just stupid idiots and were left behind in the education system, or just too lazy to care and want something bigger to take care of them, like the GIVERment..

So, barring the fact that people are supposed to tell the customer of the terms, which I agree you all should, it still remains that you, the consumer, MUST read the terms AND face the penalties and fee and all else that can come with it if they are not kept up.

I'm tired of hearing people say that they were "screwed" or "I didn't know, they never told me"... stuff like that is all pure bull waste. "Burried in paperwork"? Too bad... no one has any excuse for not reading what they are agreeing too.. and if they do, they deserve everything that happens when or if they do break the terms.
--
"Complaining is the least path of resistance for the self-reitchous and lazy..."

ispjournalist

@internet.com

deflation

Pricing per Mbps goes _down_ over time in this industry, which is why the telcos keep begging the govt to impose "mandatory price freezes" that allow the ILEC to avoid _dropping_ prices.

This is a similar strategy. Customers will be left in the dust -- if there's competition where they live.
fiberguy
My views are my own.
Premium
join:2005-05-20

Re: deflation

While that may be true that prices tend to go down, I'm guessing you haven't lived in Qwest terriroty or have had their services before.

Qwest may have dropped the proice SLIGHTLY, it hasn't gone down hardly as much as other telco providers.
--
"Complaining is the least path of resistance for the self-reitchous and lazy..."
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

Re: deflation

said by fiberguy See Profile :

While that may be true that prices tend to go down, I'm guessing you haven't lived in Qwest terriroty or have had their services before.

Qwest may have dropped the proice SLIGHTLY, it hasn't gone down hardly as much as other telco providers.
You call a price that goes from $40/mo to $27/mo dropping the price "slightly"? I realize you're just trolling (again), but you might want to try and at least pretend to be reasonable.
fiberguy
My views are my own.
Premium
join:2005-05-20

Re: deflation

I've avoided calling you a paid mouth piece, which you are, but yes... It's a fact! Tell me how your masters can avoid the fact that your prices do in fact suck!?

While all other providers were selling 1.5 DSL for $29.99 a month, Qwest was right up there at $54 for 256/256. Then, the great option of getting up to 640 came out.. whooopie!

Then, up to 1.5 came out and was supposed to save us money.. which it did until your masters forced us to purchase the dial up service which we don't need raising the bill again.

My up to 1.5 by 896 line costs me a nice $65.00 per month.

Troll? Yea... but I'd believe that would be you.

For your information, it was your own employees, DynoKnob, who introduced me to THAT slogan!

Say what you want, but the moment you call me a troll, it's on! Save your crap for someone else.

And for the record... the "drop" from $40 to $27.. shall I add all the traditional telephone small print? Shall I remind you that you get the "penalty" for not only bundling, but not having a "qualifying" phone product? It's bad enough that your masters require phone service for a discount, but a "QUALIFYING" phone service?

And you have the nerve to sit there in your chair and bitch about cable?

Don't even make me go down the history of Qwest and US West and all their problems. BBR would have to add more storage space.
--
"Complaining is the least path of resistance for the self-reitchous and lazy..."
dynodb
Premium,VIP
join:2004-04-21
Minneapolis, MN

said by ispjournalist :

Pricing per Mbps goes _down_ over time in this industry, which is why the telcos keep begging the govt to impose "mandatory price freezes" that allow the ILEC to avoid _dropping_ prices.
Cite please? I've never heard of such a thing.

wifi4milez
In Need Of Garbage Pail Kids 1st Series

join:2004-08-07
New York, NY
·Sprint Mobile Broa..
·RoadRunner Cable
·BroadVoice

Anyone else catch what they said??

said by Consumers Union :
The Consumer's Union isn't impressed by these new contracts. "Cancellation penalties are anti-competitive and deprive consumers of the benefits of competition

Ummm lets see, that why they are called CONTRACTS! If there is no enforceable clause in the language then its not by definition a contract. A contract is a document that legally binds two parties. Without some language to that effect its just an agreement. I have said it before and I will most likely say it (many, many, many times) again; "consumer advocate" groups are almost always a bunch of muck racking idiots who exists solely to stir up trouble and get press for themselves. The Qwest customers described in this article do not have to sign this contract, nor do they have to chose the "for life" plan. How the hell is that anti-competitive??? Wow, those "groups" are sure good for a mid day laugh if nothing else.
--
я люблю Денди!
damox
Premium
join:2002-01-07
Olympia, WA
·Comcast Formerly ..

Re: Anyone else catch what they said??

Well another way of looking at it is that if Qwest's "DSL for Life" were such a good deal, they would be willing to give it to customers without a contract! In other words, they would refrain from price increases. However, as it is, they know that people will bolt when something better comes along . . . and undoubtedly something will! "DSL for life is simply a marketing ploy; just something to make people think they're getting a good deal.
--
DAMOX Proud to be a member of Team Discovery
fiberguy
My views are my own.
Premium
join:2005-05-20

Great! "Consumer Unions" as usual, missed the mark...

"The Consumer's Union isn't impressed by these new contracts. "Cancellation penalties are anti-competitive and deprive consumers of the benefits of competition in the markets where there is more than one broadband provider,"

Being that Qwest has, for the longest time, NOT held people into a contract, unlike American Thieves & Thugs and Hurl-izon DSL has, I'd say that the consumer union should spend more time doing their work vs. finding ways to stuff their pockets with money.

Qwest is allowing an option to guarantee a price for life if you are willing to guarantee them 2 years of business. It's a choice, but not required. In Qwest land, you can get DSL, keep it for a few months and drop it. The price is reasonable and requires no term. Further, you get the discount for having a "Qualifying" phone package, or as they call it here in BBR-Land, you're paying a penalty up front for not bundling.

Either way - what makes this a "deal" is that they won't touch your price.. and since Qwest is known for the least amount of broadband at the highest cost, I'd say it's a situation for some people that are going to keep the service anyway and don't want to see their bill change.

Even while being in a term, you can still negotiate a better price should one come available. Qwest also gives ALL customers, as part of the "Spirit of Service guarantee" the right to have the best price available to all customers.

As much as I am not a fan of Qwest and some of their tactics, this is nothing more than an optional term which gives you the best price available that will not RAISE... but can go down.
--
"Complaining is the least path of resistance for the self-reitchous and lazy..."
BigMac777

join:2001-07-21
Green Valley, AZ
·Qwest.net

Re: Great! "Consumer Unions" as usual, missed the mark...

Its not a bad deal if they tell you the truth on what speeds you actually will get. They advertised 3-7 Mbpls and only deliver 2.6 in some areas. And they claim it is not the lines fault. Simply that is all your line qualifies for. So in my opinion they do like to tell stories or as I say lie to get you on board. I guess its back to COX for me when contract runs out.
fiberguy
My views are my own.
Premium
join:2005-05-20

Re: Great! "Consumer Unions" as usual, missed the mark...

Although I agree with you, this is more of a consumer education issue.

The 3 meg speed IS what you are getting.. what actually reaches you after all the over head is what's left. In order to get you your 3 meg service, they'd really have to give you 3.6, or abouts, in order to compensate for the overhead. So, if they sold it as 3.6 and you got your 3.0, people would still be confused. They do, however, disclaim that it is "up to" and that certain conditions will impact the performance of the service" et all.

Cable/Cox, on the other hand, over compensates for the over head to get you closer to your speeds.. however, cable, unlike DSL, can do this. DSL will qualify for various reasons distance being one of them. If they provision you for more than your line can handle, you're going to have problems. Cable, on the other hand CAN over speed you because there is room on the node, in many cases, to give that over head back to you.
--
"Complaining is the least path of resistance for the self-reitchous and lazy..."

Rob A
Jets AFC East Champs
Premium
join:2005-01-17
Pompton Plains, NJ

Great idea

Love what qwest is doing, the idea of signing contracts for lower prices is great and is a good way to get more customers. Any customer would gladly sign a contract for a lower price.
BigMac777

join:2001-07-21
Green Valley, AZ
·Qwest.net

Re: Great idea

The problem is not the line. I called them and asked. They said we are only configuring your area for 3.0 at this time. They say check back in about 6 months to see if they are ready to up the speed in the area. There words not mine. To me this was false advertising when I signed up.Saying 3 - 7 Mbps. If I had known they were lying I would have stayed with COX Cable High Speed. I know a lot of you will say "but they said 3-7" and you are getting 3.
To me this is a bait and switch tactic. This is my opinion and I am sticking by it if any neighbors or family ask. I will state to stay as far away from QWEST as you can possibly get. DO NOT SIGN UP FOR QWEST HIGH SPEED INTERNET EVER. If I can keep one person from signing up for Qwest it will be a good day for me.
damox
Premium
join:2002-01-07
Olympia, WA
·Comcast Formerly ..

Is it really such a great idea for the consumer?

What happens in say five years when 3 - 7 megabits are at the very low end of the spectrum? Say Qwest, along with other companies are offering 30, 40, and 50 megabits. Will Qwest give me increased bandwidth without making me pay more or is their price for life offer limited to my current bandwidth? If not, then what's so good about it? Since I don't have it, I don't know but my guess is customers will have to pay for significant bandwidth increases especially when inflation will significantly cut into Qwest's profits.

The Qwest commercials make it seem like Comcast is always raising their prices for broadband, but since I've had cable with Comcast and it's predecessor ATTBI, the only price increase that I've experienced, is the increase which occurred after the six month introductory rate of $19.95. At that time it increased to $42.00 a month but that was no surprise, and the price has stayed constant ever since! In that same period of time, however, I've seen my bandwidth increase from 1.5/256 to 6/384. So Comcast has increased the bandwidth but not the price. Back when I had Qwest, before they dumped their users into MSN, I had a six month introductory rate with them as well. Am I to infer from Qwest's commercials that they do not offer an introductory rate any longer? I see it as just a marketing ploy, and nothing more. So much of it has to do with customer perception.
--
DAMOX Proud to be a member of Team Discovery

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

if only

They would do 'price for life' on VIDEO! that would rock.
FANKRAH7

join:2004-01-24
Sun City, AZ
·Cox HSI

QWEST? - BUYER PLEASE BEWARE!!!

I got Qwest Choice OnLine Premier 3m/$54.99 FOR LIFE service but didn't realize that I had ordered that service. In fact I don't remember picking that particular service. All I wanted was at least 1.5m. (I had been informed by a neighbor that Qwest was the only provider in the subdivision and took his word for it). I found out later that COX had service in this new subdivision. I ordered their 8m/512 for $45/month. (1st 3 months is $19.95). It also came with free basic cable. Anyway, when I tried to cancel my Qwest service they told me they had to charge $200 early termination fee. I argued and argued but to no avail. I have previously had bad experiences with Qwest and will NEVER do business with them again if I can. I don't blame Qwest, they have to make their money somehow, but there are better services out there. Just do your research and pay attention to what you're signing up of. I'll pay the $200. Buyer, please beware and read the fine print!!!
Big Dawg 23

join:2002-03-27
Northfield, MN
·Charter Pipeline

Re: QWEST? - BUYER PLEASE BEWARE!!!

Why would you want 1.5MB as this point in time. I have Charter 10MB for 12MO @ $54.99. When it is done I may go back to 5MB for 42.99. Qwest only has the 1.5 in my area. My parents have it and it sucks. I can watch the grass grow. The more amazing thing is that Qwest is running ads in Minnesota that states 72% of customer think it is as fast if not faster than Comcast. Are you kidding me 1.5 V 6Mb no comparison. I know even if you live a overloaded Node it doest go that bad. As for the Price goes down over increase MB. I think they are talking about how most see the same price from 1.5-6mb for the most part on Cable. I paid 39.99 for speeds of 1.5, 3 & 5. You could draw the conclusion it is dropping in price per Kilo.
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