Question / Clarification on billing start

**VOIPoTim** · 12-08-2009 12:14 PM

Yes, since customers have access to the control panel immediately many setup call forwarding, voicemail etc and begin using their service right after signing up.

If we based it on another date, there would be substantial losses from unbilled time where users were using call forwarding, etc prior to receiving the ATA.

By basing it on the order date, we can give customers immediate access to their accounts while protecting ourselves from abuse. In order to maintain our low pricing, we must be strict with this. If we were absorbing losses from unbilled time, we would not be able to offer the same pricing.

The only alternative is to not activate the account at all until receipt, but the vast majority of our customers would get upset if we did that since they couldn't begin using their control panel features immediately. Some users would also debate the delivery date or the date they actually set the equipment up after delivery as well.

**larryc** · 12-08-2009 01:10 PM

Thanks Tim.
Fair enough, but I still believe the following:

1) I'm not sure I agree that "most customers" take immediate advantage of the control panel. I would bet that many (most?) do not start using the service until they have an ATA, especially if you are trying to market this as a replacement to copper POTS service.

2) Why not simply start billing on the date of the first call, or 10 days after shipment of the ATA, whichever is later? That seems fair to both parties and it would protect you from any debates. It would also allow people who wanted to take immediate advantage of the control panel to do so.

3) At a minimum, you should really disclose this policy up front when signing up for service as well as clarifying it in your T&C's web page. If you did this, there would be no argument.

Cheers,
Larry

**VOIPoTim** · 12-08-2009 01:34 PM

Originally Posted by larryc

2) Why not simply start billing on the date of the first call, or 10 days after shipment of the ATA, whichever is later? That seems fair to both parties and it would protect you from any debates. It would also allow people who wanted to take immediate advantage of the control panel to do so.

We actually begin incurring costs as soon as the phone number is activated with upstream carriers. If we don't activate it, we can't guarantee the number will still be available when the customer is ready to use it. So if we waited 10 days to activate the account, we'd be paying for the phone number and network capacity with upstream carriers for the account for 10 unbilled days.

Again, all approaches have pros and cons, but since we assign a number and give access immediately, this is the only way to cover our losses.

Statistically right now 84% of customers have either a call or have logged into the control panel within 72 hours of ordering.

**usa2k** · 12-08-2009 01:43 PM

The billing period happening on the sign-up date is typical of the other VoIP providers I have used. It seems reasonable.

I imagine that any alternative like you suggested would need more back office software changes, and the effort would not likely be recognized by most customers. As a suggestion - it is an interesting one.

**larryc** · 12-08-2009 02:12 PM

Originally Posted by usa2k

The billing period happening on the sign-up date is typical of the other VoIP providers I have used. It seems reasonable.

Perhaps, but I am sure John Q. Public wouldn't tolerate this from either the iLEC or local cable company. Imagine if you were billed for cable tv from order date, not installation date! Again, in J. Q. Public's mind, the live date for a Voip service is the day you receive your ATA, not the day you order it.

All in all, the simplest thing is to simply disclose this billing policy up front as well as in the terms of service.

**usa2k** · 12-08-2009 02:34 PM

I bet there is less fraud in residential cable service. The cable billing system is geared that way. Let me know who else does it differently in VoIP?

You can always vote with your wallet. I've never had as much value for service as VOIPo, and my vote is right here

**Brooke Lynn** · 02-08-2010 12:32 AM

I can understand the 84% statistic, as the first thing someone is going to do after signing up for a service is go access it online - even if they do not have the equipment or need to make a call. From what I've read, voipo was initially geared towards a more 'tech savvy' customer, but plans to push for more of the average customer. As one of the 'average' folk, finding out that my trial started when I accessed my account, as opposed to when I activated the device may leave a bad taste in my mouth (thank goodness I read this first!).
I suggest that maybe there should be a footnote added in the order confirmation/setup (?) email informing customers.