Home Internet Exit Charges – why you should not fear signing 24 months contracts for home services in the UAE and when is the 1 month contract better for you?

Ever felt like this after reading all terms of your contract? A bit dizzy? As if something bad is about to happen whenever circumstances force you to cancel your long-term commitment with your operator?

That’s not surprising – every telco that has contract dedicates at least half A4 page to explain what is going to happen should you decide to break the commitment.

They typically don’t look like this:

Instead, they look like this:

Basic exit charge + (device retail price + installation charge*/agreement term in months) x (agreement term in months – (1 + number of months already completed in the agreement)

where,

Basic exit charge equivalent to 1 month’s package charge applies up to a maximum of AED 1,000 (basic exit charge)

And sometimes are spiced up with additional detail for completeness:

  • The device charge is dependent on the retail price of the device which can be any or all of the following:
  • 4K TV box (Recorder AED 720/Regular AED 480)
  • Router (AED 240/AED 540/AED 960)
  • Home phone (AED 120)

… or like this:

If I need to cancel my contract early, which fees will I incur?

For 24 months contract: In case you decide to terminate your contract before the end of your contract duration, you will be charged:

  • A one-month MRC (a maximum of AED 1,000)
  • Devices cost: Device cost/contract period * (contract period – (1+number of months the customer spent in the contract))

For no contract option: All the plans come with a 1-month contract.

  • You can cancel your contract anytime and will only have to pay 1 month MRC in full if cancel within the bill cycle.
  • Devices cost: Device cost/contract period * (contract period – (1+number of months the customer spent in the contract))

So, what does all that mean for someone who is not mathematician, statistician or rocket scientist?

You can cancel your 24 months contract anytime, by paying 1 month extra and paying in full for all equipment that they ‘gave’ you at the time of installation of service.

Etisalat adds to this explicitly – if you used your own router for our service we will NOT charge you for our router when you cancel the service. This means you only pay for equipment you take.

Now is it better to take a 24-month contract vs. no contract option?

Maths for this is simple – only you are very likely to stay in one place for at least 18 months  you may be better off with a contract option. Both operators charge extra AED 20 / month on top of their 24 months prices and with subscription prices around 350 AED you will save enough for 1 month cancellation fee after 18 months, but if your plan is closer to 600 then cancellation fee at any point in time will outweigh no contract option.

Is it worth for me to cancel my contract to get a better / cheaper / more value deal?

The current, customer friendly, rules have been imposed by the TRA on 20th March 2020, so all contracts signed since then will follow new regulation. This means that if you manage to find anything 20 – 25% cheaper than what you pay now or something materially faster than what you get – you definitely should look for opportunities to change.

If you have older contract you will need to check what your terms say and do the maths.

If you have not changed anything over the past 2 years – it’s big time to get a better deal now.

As of this weekend you are able to go through all Etisalat’s and du’s plans in Aladdin’s Bazaar

Leave a Comment

Your email address will not be published. Required fields are marked *