While it might sound like something you would encounter in December in most parts of the world, it is an automatic renewal clause that some telecommunications carriers leave in their contracts to catch the unsuspecting and the careless company asleep at the switch. Good companies know that about three to six months before the end of a telecom contract, the rates and services should be shopped around- not only for the current provider but for several others. You should go to your current carrier’s rep and ask what they can do to keep your business. Your question to the others should be similar: what can you do for me to get my business? Their answer will be a variation on a theme: better service, upgraded equipment, better rates, etc.  Always go for the carrier that can provide the best, most reliable service and can give you the most competitive rates around.

The evergreen clause as it is sometimes referred to, allows the carrier to renew your current agreement just before it expires. You typically have around 30 days to end this agreement, after which the terms will start applying again. This type of clause is one of the major reasons that you absolutely must read a full contract and all addendums before signing. The automatic renewal clause does not allow you to shop around for the best rate and service plan, which is exactly why it exists in the first place. The telecom carriers do not want you to compare rates at all because they know that they will not always be able to win. Force the flow of competition by always reading your contracts and knowing when you are about to have a term renew- so that you can do your research and comparison beforehand. If your current carrier has the best price then renew; if not then use the other prices as a negotiation tool. If they will not match the better offer, cut your losses and move on.

 You can remove the clause if you both know about it and ask beforehand. Ask about automatic renewal policies when negotiating your telecommunications service. You should clearly state that you do not want to have this in effect and explain why in no uncertain terms. The carrier should be told right up front that you do not hesitate to switch when it comes to the best terms and service plans. After all, what company can afford to not pay the best price around?

If you do have to switch providers, make sure that you know how long the switchover will take; in established companies it should not be that long at all. However, if the company has to upgrade or the other company’s wiring was sub-par, you might have to wait for a longer period of time. This should also be factored in to your comparison research at the end of your contract.