[NANOG] Level3 not honoring Broadwing contracts?

Deepak Jain deepak at ai.net
Tue Apr 29 07:17:34 CDT 2008


Even if the provision Randy desribes isn't written in there, there is a 
fair amount of law that supports it.  IANAL, but basically you can't 
agree to something like a price change you have no idea of in advance, 
so you can't agree to a 3-year term on it, (or 18 months) in advance.

But as a practical matter, if they gave you 30 days to leave, you 
probably wouldn't sue them anyway... 3 years in litigation for damages 
you could easily (in most cases) avoid won't win you anything.

But if you are looking for Level 3 to make any sense, you are going to 
be waiting a long, long, long time with the rest of us.

They have never successfully "sold" much in their brief history. They 
have successfully acquired lots, and lots, and lots of revenue and then 
burned it off fabulously quickly. And there isn't even much value in 
short selling their shares.... alas.

My $0.02,

DJ

Randy Epstein wrote:
> James,
> 
> There should be a clause in the contract that allows you to cancel services
> if they change the terms and conditions of the agreement.
> 
> I know that doesn't help you much, but at least it gives you an out.
> 
> Randy
> 
> -----Original Message-----
> From: up at 3.am [mailto:up at 3.am] 
> Sent: Monday, April 28, 2008 7:37 PM
> To: nanog at nanog.org
> Subject: [NANOG] Level3 not honoring Broadwing contracts?
> 
> 
> In 2006, I signed a 3 year contract with Broadwing for a 1 cabinet 
> colocation with 6Mbs dedicated for under $1,000/mo.  A few weeks ago, 
> about halfway through this contract, I get a letter from Level 3's 
> "Director of Colocation" that they are going to raise my price by several 
> hundred dollars a month.
> 
> I spoke with my new Level 3 rep, and he just notified me that their legal 
> deparment confirms that all they have to do is give me 30 days notice to 
> increase their price.
> 
> This does not make sense to me.  I am bound to a 3 year contract, where I 
> have to pay them the rest of the term if I were to leave early, but they 
> can jack up the price by 40-50% during that time, arbitrarily?  I do not 
> see that provision in my contract, and would rather avoid legal expenses 
> if possible.  Has anyone else had to deal with this sort of thing from 
> Level 3?
> 
> TIA,
> 
> James Smallacombe		      PlantageNet, Inc. CEO and Janitor
> up at 3.am							    http://3.am
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