Is everyone getting their Orange early termination discounts?

6 April 2010

Avid Bitterwallet reader Guy has been in touch about a document he stumbled upon while searching for information on early termination costs. It's a bulletin sent to Orange retailers at the end of last year, and details potentially significant discounts that are mandatory for all dealers, including third party resellers, to offer any customer cancelling their contract.

Here's an extract from the document, which is marked up as confidential but easily found with a Google search for "early termination info for Orange":

The following information must be drawn to the customer’s attention at point of sale/upgrade i.e. any time the customer is signing up to a new minimum term contract. This must be confirmed in writing (e.g. via a completed Orange CIF form).

  • If a customer terminates their contract early, they will be required to pay the remaining monthly line rental charges to cover the minimum contract period.
  • A customer will be eligible for a discount if Orange will be saving costs when the customer terminates. This will happen where the costs Orange expects to save by the customer no longer using Orange’s network to make/send off net calls/texts are greater than any payments we anticipated receiving from other operators for calls made and texts sent to our customer.
  • The document explains that these discounts are due because Orange will save money when you leave their network. The discounts are as follow, and the document provides an example of how they're applied to monthly tariffs:
    Bitterwallet - early termination discounts from Orange
    You can read the full document for yourself here (it's a PDF file, just so you know). In summary then, if you cancel your pay-monthly Orange contract early, you are entitled to discount depending on how many days remain on your contract, and you must be informed of this entitlement whenever you agree to a new or renewed contract.

    Now this isn't particularly new information - in fact it's nearly six months old. We've been in touch with Orange and the details are still current, so we'd just like to hear from you whether it's happening or not. In particular, are third parties and resellers informing you of your right to these discounts? Let us know.

    5 comments

    • Andy B.
      WTF IS DIS REAL?
    • dvdj
      Hardly a decent saving though. And why would you try and buy your contract out anyway? 1 or 2 months maybe but anything more is just dumb. You know the terms in the first place.
    • lee
      Is this really new? I know Vodafone used to or still do operate a discount of 25% for the total bill or for every month if canceling early, this is how it worked out cheaper to cancel my contract with them 2 months early as i had just bagged myself a great deal on a HD2. With redemption from dial aphone it meant i gained money :D.
    • Pizza_D_Action
      "And why would you try and buy your contract out anyway? 1 or 2 months maybe but anything more is just dumb." Because in a lot of cases it is cheaper to get an 18 or 24 month contract and keep it for 12 months before paying it off. You save money but still only keep your phone for 12 months.
    • Klingelton
      get phones4u to buy you out of contracts like 6 months in advance - for some reason they do this. "what are you paying at the moment? oh £25 a month - if we offered you 9 million, would you leave your current contract?" they're mad. it puzzles me how they make money!

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