Qwest's 'DSL For Life' a Good Deal? - Two year contracts emerge to reduce customer 'churn'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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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