M1 Early Re-contract Fee: Understanding What It Is and How to Avoid It
M1, one of Singapore`s leading telecommunication providers, offers a range of mobile plans to meet the needs of different customers. However, if you`re an M1 subscriber, you might be wondering about early re-contract fees and what they entail.
What is an M1 Early Re-contract Fee?
An M1 early re-contract fee is a fee charged if you terminate your mobile plan before the end of your contract. If you sign up for a two-year contract and decide to terminate it earlier, you will be charged the early re-contract fee.
The amount of the fee depends on how much time is left on your contract. Generally, the earlier you terminate your contract, the higher the fee will be. For example, if you decide to terminate your contract after only six months, you may be charged up to $535.50, while terminating your contract after 12 or 18 months may result in a fee of $374.50 or $214.00 respectively.
Why Does M1 Charge an Early Re-contract Fee?
M1 charges an early re-contract fee to cover the cost of the phone subsidy they provided you when you signed up for your mobile plan. When you sign up for a two-year mobile plan, you`ll typically get a phone at a discounted price or even for free. M1 then recovers this cost over the course of your contract through your monthly bills.
If you terminate your contract early, M1 loses money on the phone subsidy they provided you, and this is where the early re-contract fee comes into play. The fee is designed to help M1 recoup some of the lost money by charging you a fee for terminating your contract early.
How to Avoid an M1 Early Re-contract Fee
If you`re an M1 subscriber and want to avoid an early re-contract fee, there are a few options available to you.
One option is to wait until your contract period is up before terminating your plan. This will ensure that you don`t have to pay the early re-contract fee.
Another option is to sign up for a SIM-only plan. This plan allows you to sign up for a mobile plan without getting a phone subsidy. This means that you won`t have to pay an early re-contract fee if you terminate your plan early.
In conclusion, an M1 early re-contract fee is a fee charged to subscribers who terminate their mobile plan before the end of their contract. The fee is charged to cover the cost of the phone subsidy provided at the start of the contract. To avoid the early re-contract fee, subscribers can wait until the end of their contract or sign up for a SIM-only plan. If you`re unsure about the early re-contract fee or have any questions about your mobile plan, it`s always best to contact M1 directly and seek clarification.