When Network Edge devices are ordered, Customer places the order on either a month-to-month (MTM) basis or a “minimum service term” commitment. In exchange for placing an Order for a minimum service term, Equinix agrees to term commitment pricing. Equinix offers service terms as follows:
| Term |
|---|
| 12-month |
| 24-month |
| 36-month |
If a Customer cancels an order having a minimum service term, whether in whole or in part (for example, Customer deletes a Network Edge device) prior to the expiration of the applicable, then-current service term, Equinix may assess an early termination fee (ETF). ETFs are calculated by multiplying the then-current MRCs for the terminated services times the number of months remaining in the applicable service term the terminated Order or service. Prior to canceling, Customer will be asked to acknowledge within the Equinix Fabric Portal at the time that service cancellation (for example, device deletion) is initiated.
Example
If Customer orders a device ($1,000/MRC - Monthly Recurring Charge) with a 12-Month minimum service term and cancels the device effective after the end of month 5 of the term, the ETF amount would equal:
(12 months – 5 months) x Device MRCs ($1,000) = 7 x $1,000 = $7,000 ETF
Notes
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ETFs do not apply to month-to-month orders.
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When the Customer deploys a redundant device (a secondary device added to the existing primary device), the service term of the primary device will be extended in order to be coterminous with the service term length for the secondary device.
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If a device is cancelled while the provisioning state is “Pending Order,” then ETFs will not apply.
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ETFs will apply during any renewal term in the same way as above for the initial service term.
If you have any questions regarding the ETFs, please contact your Equinix sales representative.
