It's not quite as you put it.
Basically, new customers will be charged, but if they decide to cancel or migrate out within the first 90 days we'll refund their subscription payments.
It's not an act of desperation, it's a statement of intent. We're saying that we're confident that we can provide an excellent level of service that customers will enjoy and not want to leave after the initial 90 days.
http://www.plus.net/switch/
As you say, we're also offering upto