Now I know it works that way, and I don't like it a little bit! A simple device so you can watch DirecTV in another room has lots of reasons to be not needed for a period of time. A child going to college or summer camp to name just a couple. It is a design flaw that they can't just turn that device off for whatever period of time. And making you forfeit your entire up front payment is not good service, no matter what the service contract is.. It's simply: "We are going to screw you because we can!"
I started with a ten rating of would I recommend DirecTV to others. It went down a point when the phone menu got long and longer with useless questions and options until you could finally speak with a person. It went down two more when they kept calling me for surveys or to try and upgrade me on something, and now three more for this. So now I am at a four instead of a ten.
It's a shame a customer has to put up with this nonsense when the company has such a great product!