What is the definition of a disconnect? a re-rate?
A disconnect is when we stop providing a customer with a certain service. Examples:
- A customer goes out of business asks that we disconnect their DS3
- A customer upgrades service, and we disconnect their DS3 and install an OC12. In this case we count the MRR value of the DS3 as a disconnect and the MRR of the OC12 as an install
- A customer ports/moves their service to a new location. We disconnect their DS3, from Philly to Washington DC and install another DS3 from Philly to Newark. In this case we count the MRR value of the the DS3 from Philly to Washington DC as a disconnect and the MRR of the DS3 from Philly to Newark as an install
When is a change in circuit ID NOT counted as a disconnect? Any change in the back office, that does NOT constitute a change in the customers service. Examples:
- The customer requests a new account number
- We change the customer’s circuit ID when we migrate them to a new billing system
A re-rate is any change in the amount that a customer pays for the same service, at the same location. Examples:
- At the end of the term, the customer’s rate increases from $1000 per month to $1100 per month. We would count this as a $100 re-rate
- The customer negotiated different rates over the term of their agreement, any time the rate changes for the same service, the change in MRR is counted as a rate change
- A customer purchases additional services and a lower rate for an existing service. This is a negative rate change.
I hope this helps clear up the confusion.
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