If you’re a residential or small business customer (10 employees or fewer) and thinking of signing up to a new phone or broadband deal, there are a few things you might want to consider first. There is advice specific to business customers on this Contracts page.
- Some contracts are offered on a rolling basis where you can cancel month to month, whereas others might tie you in for 12, 18 or 24 months. Always check and think about how long you want to be tied in for?
- Providers must offer a contract option that is no longer than 12 months for each of the services that they provide. As a residential or small business consumer, the contract for your service should be no longer than 24 months. Some contracts for mobile handsets may be longer, but if this is the case, the contract for the handset should be separate to the contract for the airtime which cannot be longer than 24 months.
- If you are signing up to a 12-, 18- or 24-month contract there will usually be a charge if you leave the contract early. These charges – called ‘early termination charges’ shouldn't be more than the payments left on the contract (and in some cases could be a lot less).
The price that you pay each month is likely to be one of the most important factors in your choice of contract. It may be:
- a single fixed monthly price for the full term of the contract e.g. £20 a month for 24 months: or
- a monthly price which starts at one price and then increases on a specified date, e.g. £10 a month until 31 March 2027 and then £15 a month from 1 April 2027.
No matter what type of contract, the amount you will pay each month should be provided clearly to you. If you're unclear as to what you are agreeing to, or are uncomfortable with the type of contract being offered, don't sign up.
If your provider increases the prices that you pay beyond what you agreed when you signed up, it must give you at least one month’s notice and a right to exit the contract without penalty.
Some providers have contracts which set out that the monthly prices you pay will increase at certain times during the contract. This should be made clear to you at the point of sale. Providers must clearly set out what you will pay after the price rise, in pounds and pence, and be clear about when those price rises will take place.
This is covered in our guidance on contract requirements (PDF, 383.1 KB). If this was made clear at the point you entered the contract, you won’t have the right to exit without penalty when the increase takes place.
- Exactly what do you get for your money? Does the contract include a usage allowance and what are the charges if you exceed this?
- Are there any extra costs - e.g. for paper bills, for caller ID, for retrieving voicemails, or if you make payment by means other than direct debit?
- What happens if there is a fault or service problem? Are there guaranteed timescales for repair? Is compensation and/or other redress available? Are there any charges for engineer visits? When and how much? See if your provider is signed up to the automatic compensation scheme.
A good way to find out what deals are available is to check the price comparison sites accredited by Ofcom.
We’ve gathered together some useful information on the main questions that you might have to help you choose provider. This includes information on customer complaints to providers and overall satisfaction rates.
Your provider must give you key information about the contract before you sign up.
Before you can give your consent to enter into a contract, you should receive a one-page (or three-page for bundled services) contract summary in writing, that includes key information, such as charges, the length of the contract and the process for cancelling. Before you are bound by the contract, the provider must also give you a more detailed set of contract information in writing.
When you buy a broadband service, you should receive accurate information on how fast your broadband will be. For fixed broadband, your provider should provide you with a clear explanation of the minimum, normally available and maximum and advertised download and upload speed. For mobile broadband, your provider should provide you with a clear explanation of the estimated maximum and advertised download and upload speed.
If you believe that a provider hasn’t properly notified you of a change to your contract or that you have been mis-sold a contract you should contact its customer services department and make a formal complaint. Always ask for a reference number when you make a complaint.
If you haven't reached a resolution with the provider after six weeks (or earlier if stalemate ("deadlock") is reached), you may have the right to take your case to an Alternative Dispute Resolution (ADR) scheme.
The provider must tell you which scheme it is a member of, or you can use our ADR checker.
You can also contact Ofcom. Complaints data helps us to target our enforcement action against companies that may not be compliant with our rules.