Underutilization Charges definition

Underutilization Charges. If Customer’s Total Service Charges do not reach the TVC during the Initial Term, Customer shall pay (a) all accrued but unpaid charges incurred under this Agreement and (b) an “Underutilization Charge” equal to 50% of the difference between the TVC and Customer's Total Service Charges during the Initial Term.
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Underutilization Charges. If Total Services Charges in an AVC measurement in any contract year during the Initial Term, the Customer’s Total Service Charges do not meet or exceed the MVR, the Customer shall pay (a) all accrued but unpaid charges incurred under the Agreement and (b) an “Underutilization Charge” in an amount equal to the difference between the MVR and the Customer’s Total Service Charges during such contract year
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Underutilization Charges. For Customers with an AVC as set forth in Schedule A, if at the end on any Annual Period (as hereinafter defined), Customer's Usage Charges (as hereinafter defined) during such Annual Period fails to meet or exceed the AVC, Customer shall pay, in addition to all other charges under this Agreement, the difference between the AVC and Customer's Usage Charges during such Annual Period. For purposes of this Agreement, "Annual Period" means the consecutive twelve (12) month period commencing on the Effective Date and each consecutive twelve (12) month period thereafter during the Term or any renewal Term thereof. For purposes of this Agreement, "Usage Charges" means Customer's recurring usage charges for Private Line Services provided under this Agreement, calculated net of discounts. Usage Charges do not include the following: (i) taxes and tax related surcharges; (ii) charges for equipment and collocation; (iii) charges incurred where MCI WorldCom acts as agent for Customer in the acquisition of goods or services; (iv) standard non-recurring charges; and (v) certain other Tariffed charges, including, without limitation, Universal Service Fund charges. PENDING CHARGES COUNT TOWARD AVC IN CERTAIN EVENTS: Notwithstanding the foregoing paragraph, if MCI WorldCom causes a delay in installation of Private Line Service (up to the OC-3 level) of more than sixty (60) days after receipt of a service order, and such delay results in Customer's failure to meet the AVC for that Annual Period, then Customer will receive credit for all such pending orders (beginning with the sixty-first (61st) day and thereafter) for purposes of determining whether Customer has satisfied the AVC for that Annual Period. On a case by case basis, MCI Worldcom may inform Customer at the time of a service order request that the expected installation interval will be longer than sixty (60) days. If, following such notification, Customer agrees to such specified installation interval, then such interval shall be apply for that Service Order only. In such event, if MCI WorldCom causes a delay in installation of Private Line Service (up to the OC-3 level) of more than the specified installation interval, and such delay results in Customer's failure to meet the AVC for that Annual Period, then Customer will receive credit for all such pending orders (beginning with the first day following the specified installation interval and thereafter) for purposes of determining whether Customer has satisfied th...
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Examples of Underutilization Charges in a sentence

  • OC-12 SmartRing Monthly Underutilization Charges: If in any monthly period, Customer’s Total Service Charges for OC-12 SmartRing Service do not meet or exceed the OC-12 SmartRing Minimum MRC, then Customer musts pay: (i) all accrued but unpaid charges incurred under the Service Attachment; and (ii) an “Underutilization Charge” in an amount equal to 100% of the difference between Customer’s Total Service Charges for OC-12 SmartRing Service and the monthly recurring charge during such monthly period.

  • If Company terminates this Agreement before the end of the Term for reasons other than Cause, then Customer will pay, within thirty (30) days after such termination, all accrued but unpaid charges incurred through the date of such termination, but Customer will not be liable for Underutilization Charges in the year in which such termination occurs and AVC in the year in which such termination occurs and of subsequent Contract Years, if any.

  • Pursuant to the Business Downturn clause of the Agreement, Company will waive the Underutilization Charges which have accrued but are as of yet unpaid under the Agreement as of the 1St Amendment Effective Date.

  • During the Ramp Down Period, the terms and conditions of the Agreement will apply except that the TVC will not apply; provided, however that any charges paid by Customer during the Exit Phase shall be applied in satisfaction against any Underutilization Charges.

  • Underutilization Charges: If, during the Term, the Customer’s Total Service Charges do not meet or exceed the TVC, the Customer shall pay: (a) all accrued but unpaid charges incurred under the Agreement and (b) an “Underutilization Charge” in an amount equal to 25% of the difference between the TVC and the Customer’s Total Service Charges during such Term.

  • Upon the expiration of the Initial Term and during any Renewal Term, Customer shall not be liable for Underutilization Charges or Early Termination Charges (except to the extent a termination charge is expressly identified in a Service Attachment or SLA in the event of termination by Customer of a specific service.

  • Commencing on the 15th Amendment Effective Date, the Customer’s Underutilization Charges are as follows: If the Customer’s Total Service Charges do not meet the AVC in any given Contract Year, Company will calculate the qualified revenues from the VBS Agreement between Vanco and Company (“the Vanco Agreement”), at such time the Vanco Agreement is fully executed, and then add the Total Service Charges under the Agreement.

  • Underutilization Charges: Where applicable, if, in any Contract Year, Customer’s Eligible Usage Charges are less than the Annual Minimum, then Customer will pay: (1) all accrued but unpaid charges incurred by Customer; and (2) an underutilization charge equal to the difference between the Customer’s Eligible Usage Charges during such contract year and the Annual Minimum.

  • Classifications, Practices and Regulations: Underutilization Charges: If, in any Contract Year during the Initial Term, Customer’s Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an “Underutilization Charge” in an amount equal to 25% of the difference between the AVC and the Customer’s Total Service Charges during that Contact Year.

  • Underutilization Charges: If in any Contract Year during the Term, Customer's Total Service Charges do not meet or exceed the AVC, then Customer shall pay: (a) all accrued but unpaid charges incurred under this Agreement; and (b) an "Underutilization Charge" in an amount equal to the difference between the AVC and Customer's Total Service Charges during that Contract Year.