There are a couple reasons.

You order service from me.  It costs me $X to build out that service.  I balance that against the value of your contract.  If you cancel early then my numbers may not work or I may lose money on the deal, or.... if I had to borrow money to do your build, then my bank is going to be angry when the value I told them I was getting for the build doesn't come through.


Smaller providers may end up factoring your contract.  If that contract doesn't pay what they said it would they're liable for the balance of the factoring deal.



On 3/7/2018 10:55 AM, Mel Beckman wrote:
NRC? Do you mean ETC (early termination charge)?

This is a sore point with me in all telco contracts. They want a one- or 
two-year term, or even three, and in exchange give you a discount on the 
installation and a tiny MRC reduction. But if you cancel early, they demand 
full payment for all the remaining months! I realize that the contract is 
written this way, but why? It doesn’t seem fair at all, and as a service 
provider myself, I know this is actually a huge unearned windfall for the 
provider.

To make things worse, many providers subtly plant an “auto-renew” clause in 
their contracts. You miss canceling but the end of the contract date, and BOOM, 
you’re on the hook for another two years!

  I’ve been burned by this more than once.

  -mel

On Mar 7, 2018, at 8:41 AM, Romeo Czumbil <romeo.czum...@tierpoint.com> wrote:

Wait till you ask for a disconnect. Then you get hit again for a hefty NRC





-----Original Message-----
From: NANOG [mailto:nanog-boun...@nanog.org] On Behalf Of James Laszko
Sent: Wednesday, March 7, 2018 10:11 AM
To: nanog <nanog@nanog.org>
Subject: Zayo zColo Xcon Pricing

One of our colo’s in San Diego was purchased by Zayo recently and I requested a 
new copper Ethernet xcon to be placed.  After a few days I received a quote 
from my new rep quoting a MRC 3x what I’m currently paying for existing xcon’s 
as well as a hefty NRC as well.  Anyone have any experience with this kind of 
thing?  Anyone care to share what an average copper xcon, single floor, 
meet-me-room to cage, Ethernet from carrier circuit costs?  (This xcon is 
approx 30 feet..)

Thanks!

James

Sent from my iPad

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