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Section 35:CellStream


Part 8:Contract Options

Subpart 1:Spread of Connection Charges

For contracts of 3, 4 or 5 years duration, the Connection Charge may be spread over the term of the Contract. An interest charge is included in the spread charges. The period over which instalments are made for the Connection Charge shall not exceed the remaining term of the Contract. For example, it is not possible to spread the Connection Charge over a period of 5 years if only 4 years remain on the Contract. The annual instalment for each year of the spread period is:



Spread Period

Annual Instalment

3 years

Connection Charge x 0.388

4 years

Connection Charge x 0.302

5 years

Connection Charge x 0.258

It is not possible to spread Connection Charges in conjunction with an Advanced Payment Discount Scheme Contract (previously known as the Advanced Payment Discount Scheme).

Subpart 2:Discount Schemes

CellStream customers may take advantage of one of the following discount schemes:

  • 1.The Unified Discount Scheme.
  • 2.Advance Payment Discount Scheme (not available to new Customers).
  • 3.NetStream 2000.

Shifts are allowed at any time during the Contract Term at the rates in Section 35 Part 5

the Unified Discount Scheme

The Unified Discount Scheme, as detailed in Section 47 Part 3 applies to all CellStream Customers (other than those Customers on the Advance Payment Discount Scheme or on NetStream 2000). Previous CellStream combined spend and term Discount Schemes (sometimes referred to as CellStream Term and Expenditure Discount Schemes) were terminated on 30th October 2001, with all Customers automatically migrated to the Unified Discount Scheme.

Customers may opt to enter into a 1, 3, 4 or 5 year contract. The level of discount, under the Unified Discount Scheme, depends on both the Contract term as well as the level of annual expenditure contracted for (`the Committed Spend').

The expenditure eligible for discount includes Access rental and PVC bandwidth rental charges, but excludes Connection Charges. Expenditure at different Sites can be aggregated for the purpose of calculating the discount level. Prevailing prices are used for calculating the discount.

Customers may not change the terms of the Contract during the first 12 months of service. At the end of the first 12 months, Customers may take out a new Contract with an increased term, level of expenditure, or both. Existing contracted expenditure and term commitment levels may not be reduced.

Where Contract changes occur, the expenditure levels for part periods will be compared to the contractually committed expenditure levels calculated on a pro rata basis and the appropriate discount applied at the end of the year.

Advance Payment Discount Scheme

The Advance Payment Discount Scheme is withdrawn from new supply.

The Advance Payment Discount Scheme allowed Customers to make a single payment (`the Advance Payment'), equal to the full Contract value, at the start of the Contract term.

The Advance Payment covers the Connection Charge, Access rentals and PVC bandwidth charges, though the discount only applies to the Access rentals and PVC bandwidth charges. The level of discount depends on the length of the Contract term.

It is not possible to spread the Connection Charge over the term of the Contract under this Scheme.

Eligibility

The Advance Payment Discount Scheme option is only available to CellStream customers who applied for the Advance Payment Discount Scheme prior to 22 August 2002. The Scheme is not available to new customers.

Pricing Information

1) Discount Rates

The following discount applies to the Access rental and PVC bandwidth charges only.



Term of Contract (Years)

3 Year

4 Year

5 Year

%

%

%

Discount

10%

14%

17%

2) Service Credits

The Advance Payment will generate a service credit, against which the ongoing service charge will be debited. This service charge will be discounted at a rate calculated using the table below, where the expenditure per annum is calculated as an effective expenditure, using the rental elements of the Advance Payment and the term of the Contract. The service charge will be debited on a quarterly basis, using the prevailing prices.



Discount Tier

(expenditure per annum exc VAT)

Discount

1 Year

3 Year

4 Year

5 Year

%

%

%

%

> £0.05m - £0.5m

0%

4%

7%

10%

> £0.5m - £1.0m

1%

6%

10%

13%

> £1.0m - £2.0m

9%

14%

16%

19%

> £2.0m

20%

25%

27%

30%

If the overall service credit is exhausted at any time during the Contract term, the service charge will be discounted as per the table above for the remainder of the term. The discount rate will be calculated using the term of the Advance Payment Discount Scheme option and the average yearly rental spend calculated using the total rental value of the Advance Payment.

Any increase in prevailing prices will not incur an additional charge to the Customer over and above the original Contract value, unless the Customer requests a service change. The associated charge will be debited from the credit at the new prevailing rate, discounted as per the above table.

At the end of the Contract term, any unused credit will be null and void, unless a new Advance Payment is made, which is equal to or greater than the original Contract value or term. In that event, any unused credit will be transferred to the new Contract.

Conditions

1) Conditions for Private Services apply, amended as per Part 1 of this Section.

2) Purchase of new CellStream Accesses.

Any new CellStream Access purchased during the Contract term will be contracted for the remaining term of the Contract term, unless purchased in the final year of the Contract term, in which case the Access will be subject to a minimum 12 month term. Rentals for new CellStream services will be debited from the service credit at prevailing rates, discounted as per the table under Service Credits above. Connection Charges will be charged at a non-discounted rate.

Migration to the Advance Payment Discount Scheme

As the Advance Payment Discount Scheme is not available for new orders, migration to the Advance Payment Discount Scheme is not possible.

Termination of An Advance Payment Discount Scheme Contract

If a Customer terminates the Contract before the Contract term expires, BT shall pay the Customer a percentage of the value of the rentals applicable to the remainder of the Contract period.



For Termination

Within the first 12 months of service

After the first 12 months of

service

Payment

No rental will be repaid in respect of any unused part of the initial 12 month period, but 80% of the rentals applicable to the remainder of the Contract term after the initial 12 month period will be repaid.

80% of the rentals applicable to the

remainder of the Contract term will be

repaid.

CellStream Re-Sign Discount Scheme

In addition to the discounts available under the Unified Discount Scheme (UDS), Customers can also qualify for an additional discount when they commit to a Re-sign term which is specific to CellStream and/or FrameStream. This additional discount will be known as the Re-sign Discount.

This additional discount will apply to Access and PVC rentals. All CellStream and FrameStream Access and PVC (including CellFrame) options are eligible for the Re-sign Discount. The discount will be applied to CellStream's and FrameStream's headline prices.

The length of the Re-sign term must be at least 12 months, however the level of Re-sign Discount available will be the same regardless of how long the Customer is re-signing for.

The Re-sign term must be greater or equal to the term outstanding on the existing contract. The date of the Re-sign can not be backdated.

Eligibility

Customers who have had CellStream and/or FrameStream service for a minimum of 12 months will be eligible for the Re-sign Discount.

Customers on existing 3 year contracts may be re-signed no earlier than 6 months before the end of the current term.

Customers on existing 5 year contracts may be re-signed no earlier than 9 months before the end of the current term.

The Re-sign term must be greater or equal to the term outstanding on the existing contract.

Discount Available

The following table shows the Re-sign Discount available:



Length of Relationship with CellStream and/orFrameStream

Additional Discount

%

12 months or longer

10%

Re-Sign Incentives

Customers that Re-sign for CellStream can qualify for the following benefits.

IP Clear Migration

Every CellStream circuit that a Customer has retained up to the end of the Re-sign term will qualify the Customer for a reduction in IP Clear Connection Charges. This will be applicable on a one for one basis where every CellStream circuit equates to a discount on one IP Clear Connection Charge.

The discount rate varies depending on the length of the Re-sign term.



Re-sign Term

IP Clear Connection Charge Discount

%

1 year

0%

2 years

10%

3 years

25%

4 years

35%

5 years

50%

IP Enabled CellStream

Customers with a Re-sign contract will qualify for free IP Enabled PVCs for a period of 6 continuous months starting from the date of re-sign. This offer is subject to a maximum of 5Mbit/s of IP Enabled bandwidth per customer. Orders for IP Enabled PVCs must be made at the same time as the contract re-sign.

Early Termination of a Re-Sign Contract

Should a Customer cease any circuits during the term of the Re-sign contract BT will seek to recover an amount equal to the value of the additional discount received during the Re-sign term.

In addition, those circuits ceased during the Re-sign term will not be eligible for the IP Clear migration terms.

NetStream 2000

See the subpart titled `NetStream 2000' within Section 12 Inland Private Circuits, Part 7 NetStream, for details of NetStream 2000.

Migration from the Unified Discount Scheme or the Advance Payment Discount Scheme to NetStream 2000 is permitted without payment of early termination charges, provided that:

*the term of the NetStream 2000 contract is equal to or greater than the outstanding term of the existing CellStream Contract.

*any outstanding CellStream Connection Charges are paid in full before migration.

*the NetStream 2000 contract is entered into on or before the termination of the CellStream Contract.

*the total value of the Connection Charges, Rentals and other charges for the new NetStream 2000 contract exceed the charges which would have been payable for the outstanding term of the CellStream Contract.