Many consumers will enter into contracts with a fixed term with operators when subscribing to telecommunications services. To avoid unnecessary financial loss or misunderstanding, before the expiry of the contract term or switching to another operator, customers should examine in detail the arrangement under the existing or new contract in relation to the expiry of the fixed term, the terms and conditions as well as procedures that should be followed for terminating service.
Renew telecommunications services contract via telephone
When receiving calls from telemarketing representatives trying to persuade you to renew or change your telecommunications services, please be cautious. Here are some key points to keep in mind:
First, verbal contracts are legally binding. Any telephone agreement may be referenced in the event of any future discrepancies.
Secondly, protect your personal information. Do not give your personal information, such as name and credit card information or other sensitive information, until you fully understand the terms of the contract.
Thirdly, know your needs. Ask for a service plan that includes the services you actually need. If you currently subscribed to services you no longer need, ask your operator to deactivate them.
Lastly, do not rush into any contract renewals. If you are unsure about the terms being offered, take the time to discuss them with your family and trusted friends. If the new contract includes multiple services, review the specifics and updated contract terms for each service to ensure you make an informed decision.
Note the automatic contract extension or renewal terms
Some operators may state in their contracts that the customer may opt for automatic renewal of the contract after the expiry of the fixed term. Before signing the contract, you should check whether such arrangement is stated in your contract.
Understand the procedures and formalities required to terminate the contract
Some operators may state in their contracts that if a customer does not request service termination upon the expiry of the fixed term, the service will not be terminated automatically. Instead, service will continue to be provided to the customer on a month-to-month basis with relevant monthly fee applied. The advantage of such practice is that the existing service will not be terminated abruptly upon the expiry of the fixed term, thereby causing inconvenience to the customer who has not contacted the operator in advance. However, you should note that the monthly fee charged by the operator thereafter may not be the same as that within the contract term. For example, promotions that are normally applicable to the fixed-term plan may no longer be provided after the expiry of the fixed term. As such, if you want to continue using the service provided by the same operator after the expiry of the fixed term, you should consider renewing your contract or signing a new service contract with the operator concerned.
If you decide to terminate service, you should note that operators normally require one-month notification (or other notification periods as applicable) as specified in the contract. Charge may be imposed if customers fail to give the required notification. As such, you should notify the operators of service termination according to the required notification and allow sufficient lead time to complete the required procedures and formalities. Some operators may require their customers to return equipment by themselves. Please pay attention to whether the contract specifies relevant details. Regarding the residential broadband service termination arrangements, please refer to the Office of the Communications Authority (OFCA)’s website for details of the arrangements adopted by major residential broadband service providers to handle service termination requests from service users .
Charges between the expiry date of the fixed term and the last day of the final billing cycle
The expiry date of the fixed term and the last day of the final bill cycle may not be the same. You are advised to pay attention to how the service charge during this period is calculated (for more information, please refer to Be a Smart User). If you have signed a contract with a fixed term, early termination before the expiry of the fixed term may result in early termination charge.
With the implementation of the Industry Code of Practice for Telecommunications Service Contracts ("the Industry Code"), consumers can enjoy the following enhanced protection:
1. The contract must specify whether service will continue to be provided to the customer after the expiry date. If the service is to continue after the expiry of the term, the contract must specify the charges as well as whether the service provision will have any changes.
2. Unless otherwise agreed by the customers, the contracts should not be automatically renewed upon expiry.
3. Contracts must provide customers with a right of termination even if the customer has indicated his/her consent for automatic contract extension or renewal.
The Industry Code was revised in October 2014 and has been effective since 1 May 2015, with provisions (a) further improving the arrangements for service termination, including that the arrangements must not cause inconvenience to customers or involve unreasonable delay, and (b) encouraging operators to make the service termination form available on website, accept any written termination request by the customers, acknowledge the receipt of any verbal, written or in person service termination request promptly and handle the termination request without unreasonable delay.
Under the latest version of the Industry Code, consumers with a contract entered into, renewed, extended or replaced since 1 October 2023 may elect to give the operators a notice of termination as early as 60 days in advance of contract expiry, but must not be obliged to give the operators more than one month's prior notice of termination. Further, the operators are encouraged to (a) make the applicable service termination form available on website or mobile application for download, and (b) accept any verbal, written or in person termination request.
Please refer to the Industry Code for details.
