Mark Cranness wrote:

>This doc:
>http://www.telecom.co.nz/binarys/ubs_faq1.pdf
>... clarifies the churn fee, and I think it is now clear that the churn fee
>is NOT paid to the ISP that looses the customer.
>
>
>
When I interviewed Telecom about this they confirmed that the churn fee
would be paid to Telecom regardless of which ISP was doing the taking
and which ISP was doing the losing.

So if a UBS customer leaves Xtra for Orcon, Orcon pays Telecom a churn
fee. If a UBS customer leaves Ihug for Orcon, Orcon pays Telecom a churn
fee.

I've had it described to me as a book-keeping cost on a par with
establishing a new connection for a customer who moves or installing a
connection on a customer premises. While I can see the cost involved in
a technician coming out to put the kit in place, I fail to see how
Telecom needs to spend anywhere near $100 in letting an Ihug customer
move to Orcon or whatever.

Cheers,

Paul Brislen

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