How much one will have to pay if one decides to cancel a phone contract or internet is one of the wisest questions to ask oneself before committing to a telecom provider. The answer is never quite simple and requires to do a bit of math, and to make things worse, these conditions are likely to change over time. Finally, regulatory environment has also been changing, affecting the possible cost when users want to cancel their phone contract.
The basic idea is that there often is a predefined contractual period binding the customer to the provider. To cancel the phone contract or internet contract after this period of time has ended is usually free, and before is almost always submitted to cancellation charges, or “early termination fees”.
Another general idea is that there are no termination fees if tariffs, terms and conditions are modified during the contractual period and the subscriber does not accept these changes.
When termination fees apply, the rule is that a fraction of the monthly service fees will be charged, for every outstanding month until the time when the contract was normally due to expire.
For instance, to cancel a phone contract with BT with an unlimited calls plan, users will have to pay £11,50 for every month until the end of the contract, so if there are six months left, the cost will be £69.
Things get more complicated with triple play or quadruple play offers, as the same calculations will likely have to be done for each service within the packaged offer, and charges will be cumulative.
An additional question: Respond to this Question
- How much does a business phone and internet contract cost?