Because we offer an ultra-low cost Basic Calling Plans, we must aggressively ensure that our plans are not abused (abuse hurts anyone that is trying to save money). Please note, this is not an unlimited call plan (i.e. it's called Basic Call Plan in the CONNECT portal, not an Unlimited Call Plan) and is not marketed as such. It is marketed as a basic, ultra-low cost service. Here is how the revenue from your call plan is generally allocated:

For example - assuming a US customer paying netTALK $39.95 ($49.95 in CA) per year:

Single line gross monthly revenue:                $3.32 per month
Max Single line monthly telecom costs:        
$3.00 per month
General & Administrative monthly costs:      
$0.30 per month
Profit per line:                                                  
$0.02 per month*

*(assuming customers reached the highest monthly usage)

As you can see, we need a laser focus in keep costs at an absolute minimum so our entire customer base can reap the benefit of ultra-low cost calling. 

Government related fees $9.99/year: these are fees collected and retained by netTALK to help recover certain costs we have already incurred and continue to incur associated with regular government and 3rd party compliance assessments. More on that here

Processing transaction fee: $1.75/year: these are fees associated with credit card and banking transaction fees. 

Now, 97% of our entire customer base, never exceeds any limitations. That said, netTALK calculates the 1,500 limit based on an average cost of 1 cent per minute. If the actual cost of termination exceeds this cost, the total of outbound calling talk time minutes allowed per month may be reduced. netTALK used to cover this added expense, but in an effort to keep prices low for everyone, individuals who need more TALK credit can add them in increments as low as $5. If you don't wish to add TALK credit, you account will reset the 1st of the next month. The limitation only applies to outgoing calls and does not apply to incoming calls, on-net calls (netTALK to netTALK calls), toll free calling, 411 and e911.

Note, we are significantly cheaper than our competitors while providing greater value-added features. The dirty little secret in telecom is the word: "unlimited" - there is no such thing as 'unlimited' in the telecom world. If you are in need of 'unlimited' you do have options for higher usage plans, at a significantly higher cost, from other telecom companies (i.e. Vonage and Ooma). 

Now here is the fine print for your review:

Our calling plans are solely geared for residential use and are subject to netTALK’s sole evaluation of use consistent with our residential service offering. netTALK may use any of a number of combined indicators when determining non-residential like usage. These include but are not limited to: excessive minute usage, excessive numbers called, excessive call time, excessive countries called, traffic pumping numbers called. netTALK will always strive to bring the best service at the lowest cost to its residential customers. People who need an international business telephone service would be best served on netTALK’s per minute international plan, which is among the lowest priced, highest quality in the industry.

Normal reasonable use - netTALK assesses customer usage as compared to similarly situated customers (residential use in residential service plans. Each of the following is considered unusual or personal residential, use and is an unacceptable use of our residential plan:

  • The use by or for others who do not live with you, or, with respect to extensions netTALK™ plans, other extensions that are not registered users of netTALK™
  • Operation of a business, even if the residence is operated.
  • Operation of any enterprise, including nonprofit
  • Operation of a call center
  • Resale to other
  • Automatic dialing or fax / voice of explosions
  • Telemarketing
  • The use without direct dialogue, including use as a monitor, intercom or for transcription purposes
  • Excessive Unique numbers called
  • Excessive Length of calls
  • Excessive Call forward / transfer
  • Excessive Conference Calls
  • Excessive short calls

Based on this combination, may determine that netTALK abnormal use, unreasonable or impermissible is happening and can take appropriate steps described below to enforce this policy and the Terms of Service (the “Rights of netTALK”).

Source: www.nettalk.com/reasonableusepolicy

Usage Terms

c. Prohibited Uses of Service or Inconsistent with Normal Use

You are expressly prohibited from reselling or transferring the Service or netTALK.com Equipment to any other person for any purpose, without express written permission from netTALK.com in advance. In addition, you are expressly prohibited from using the Service for auto-dialing, continuous or extensive call forwarding, telemarketing, fax broadcasting or fax blasting, or for uses that result in excessive usage inconsistent with normal residential or home office usage patterns. 

If netTALK.com determines, in its sole discretion, that you are reselling or transferring the Service or that your Service is being used for any of the aforementioned activities, netTALK.com reserves the right, without advance notice, to immediately terminate or modify the Service, or to change your calling plan to a different offer on a prospective basis, and in addition, to assess additional charges for each month in which excessive usage occurred. If you subscribe to a calling plan, which may or may not include unlimited calling of any type, and unless otherwise specified by your specific plan in marketing materials associated therewith, may be subject to restrictions: Calls to (a) Alaska & Hawaii (and outside the Continental U.S.) (b) the Yukon and Northwest Territories of Canada, (c) all non-Canadian international calls, (d) non-8YY accessed calling card, platform, conference or chat lines, or (e) certain other high cost calls, or any call wherein we incur a cost from another carrier, are subject to additional charges. Additionally, netTALK calculates the 1,500 limit based on an average cost of 1 cent per minute. If the actual cost of termination exceeds this cost, the total of outbound calling talktime minutes allowed per month may be reduced.

Other uses inconsistent with normal use as described in paragraph 2 below, taking into account all types of calling in your plan, shall be presumed to be not consistent with these restrictions and shall be subject to the conditions described within this section c.

If you use the service, any feature or the device in a way that is inconsistent with the normal use for your service, feature or plan, you will be required, at netTALK .com’s sole discretion, to pay the rates for the service, feature or plan that would apply to the way you used the service, feature or device, or terminate the plan. For example, if you subscribe to our residential service plan, and your usage is inconsistent with normal residential use, you may thereafter be required to pay our applicable, metered rates that netTALK.com applies for commercial service for all future use of our service for the device that was inconsistent with normal residential use. Unlimited voice services are provided primarily for continuous live dialog between two individuals. Lack of continuous dialog activity, unusual call patterns, excessive conferencing or call forwarding,excessive calling to inflated tariff areas, excessive numbers and/or consistent excessive usage will be considered indicators that use may be inconsistent with normal use, or that impermissible use may be occurring and may trigger an account review or further action by us. We may determine inconsistent use based on material deviations from the usage patterns and levels of most of our customers using the same and/or similar service plans, features or devices. Failure to contact netTALK.com in response to its notifications and/or failure to promptly correct usage activity to conform to normal use will result, in netTALK.com’s sole discretion, in immediate mandatory transfer to another appropriate plan(which may be higher in cost), suspension or termination of service. You acknowledge that if your service is terminated under this provision, you are subject to all applicable disconnection and recovery charges. Additional information as to what is considered reasonable use can be found in 

Source: http://www.nettalk.com/terms-of-service/

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