An early termination fee (ETF) is applied when a service is cancelled within the minimum commitment period.
There are several options to set up an ETF:
- Variable: the fee exists of the remaining fees applicable till the commitment date, calculated as of the date of the deactivation of the SIM/cancellation of the service
- Variable With Limit: the ETF is the lesser of the total of the remaining fees or the maximum amount entered
- Fixed: the price plan dictates a fixed ETF regardless of the date of deactivation/cancellation of service
- Rule based
The ETF is determined in the price plan, see Iridium Certus Price Plan creation.
For rule based Early Termination fees, it is possible to have a different ETF based on how long the subscription has been active (applied to certain Certus subscriptions). In the example below, the ETF is calculated as x times the monthy recurring costs.
NEW 2021
A new option has been introduced to force pro-rating of ETFs to cater for scenarios where the subscription start IS pro-rated, but the subscription end is NOT. By default this causes the ETF to not be pro-rated. With the setting “inv_ForceProratingOnETF” this can be overridden (Admin users have access to implement this option. Please speak to your Admin users for more information)