Description

Fixed Duration Contract Options have been withdrawn from new supply.

Customers can choose a Fixed Duration Contract, which offers a structure of payment instalments based on a Full Contract Price (as defined below) & dependent on the Contract Period.

Contract periods of 3, 5 and 9 years are available

Rentals

Rental prices will be based on prevailing standard rental prices for the service.

Discounts

Rentals will be reduced by two discounts as indicated below, dependent on the Contract Period chosen:

These discounts are applied multiplicatively to rentals, which means that each discount is applied sequentially to the rental price, after the previous discount has been deducted.

Note that circuits on Fixed Duration Contracts are not eligible for, nor can they contribute towards the volume or spend commitments on the following discounts:

• Digital Discount Options
• Pool Contracts
• NetStream 2000
• NetStream Corporate
• NetStream Enterprise

Connection Charges

Connection Charges for Low Speed and High Speed KiloStream circuits will be 20% of the Full Contract Price.

Connection charges are payable up front as a single non-recurring charge & not as part of the Fixed Duration Contract instalment payments.

Full Contract Price

On application for a Fixed Duration Contract, customers will be given a quotation of the Full Contract Price for the duration of the contract and a breakdown of this price into annual payments and connection charge.

Full Contract Price is determined in the following way:

• Determine annual gross prevailing rental for this service via the Electronic Price List.
• Apply volume and term discounts as specified above multiplicatively.
• Apply the annual price reduction factor (see table below) to the annual discounted rental, year on year. For example, if the Contract Period is 5 years, then Year 1 rental would be the discounted Year 1 rental, Year 2 rental would be that figure less 3.5%, Year 3 would be the Year 2 rental less 3.5% and so on. Overall net rental for the total Contract Period would be the sum of the diminishing rentals over Years 1 to 5.
• Identify the current standard connection charge for this service (See earlier in this part for details) & add this to the overall discounted rental for the total Contract Period. This gives the Full Contract Price.
• The Connection Charge as cited under Connection Charges in this entry is then deducted from the Full Contract Price, as connection is billed up front. This provides a split of the Full Contract Price between connection and rental.

Annual Reduction Factor

This is the percentage by which the annual rental is diminished year on year, as outlined above. The applicable figure is dependent on Contract Period, as indicated below:

• 3 years: 3.0%
• 5 years: 3.5%
• 9 years: 4.5%

Annual Rental Payments

The annual rental payment for which the customer is liable is determined by the term of the contract, based on which a percentage is applied to the rental part of the Full Contract Price. These percentages are as indicated below & the figures equate to the proportion of the rental as identified in the Full Contract Price that the customer must pay each year of their Contract Period.

Termination Charges

There are no termination charges applicable in relation to this contract type.

Minimum Period of Service

There will be no minimum period of service for circuits on Fixed Duration Contracts, the contract can be ceased at any time with 90 days notice to BT.

Billing

Rental can be billed quarterly in advance or monthly in arrears at the customers request.

Migrations

Existing circuits can migrate to Fixed Duration Contracts subject to them having completed their one year minimum term. There will be a one off migration charge of 50% of the applicable connection charge, as indicated above.

Circuits on Fixed Duration Contracts cannot be migrated onto other Private Circuits discount contracts or to other BT services, unless the Fixed Duration Contract is terminated.