A carrier quote is a short document that hides most of its cost in three places: the one-time charges, the length of the term and the promotion that ends before the term does. Reading one properly takes a few minutes and saves the argument later about why the bill does not match the quote.
The four numbers on every quote
- MRC, the monthly recurring charge. The price you pay each month for the service itself, before taxes, fees and surcharges.
- NRC, the non-recurring charge. One-time costs: installation, construction, equipment, activation. Often waived in exchange for a longer term.
- Term. The number of months you are committed for, usually 12, 24, 36 or 60. A longer term lowers the MRC and raises the early termination fee.
- Promotional period. A lower MRC for the first few months, after which the standard rate applies. The standard rate is the one to compare.
Compare total cost over the term, not the monthly price
Multiply the standard MRC by the number of months in the term, add the NRC, and subtract any promotional savings. That is what the service costs you. A quote with a lower MRC and a higher install charge can cost more over 36 months than the one that looked expensive on the first page, and a 60-month term that saves twenty dollars a month commits you to two extra years of a price the market will leave behind.
Put every quote on the same term before comparing them. If one carrier quoted 36 months and another 60, ask the second for a 36-month price. Carriers will usually provide it, and the difference tells you what the longer commitment is really worth to them.
What the quote leaves out
Taxes, regulatory fees and surcharges are rarely on the quote and can add fifteen to thirty percent to the monthly amount for voice services. Ask for an estimated all-in monthly total before signing. Also check whether the quoted bandwidth is dedicated or shared, whether the price includes the router or only the circuit, and whether the carrier owns the last mile or is reselling another carrier's line, which affects who you call when it is down.
Before you sign
Make sure the signed order carries the same MRC, NRC and term as the quote, and that the renewal clause and the notice window are written where you can find them. The order form, not the quote, is the contract. Keep both together with the first bill, which should match the order to the dollar.
DemarcLabs shows quotes side by side with the total cost over the term calculated for each, and checks the first bill against the signed order before the service is accepted into the inventory.