TELECOMS CONTRACT RENEWAL

What you don’t realise is that your agreement contains a notice period. By the time you begin exploring alternatives, the deadline has already passed, and your provider considers the contract renewed.

Many businesses only discover this when they start requesting quotations or planning a change.

What Does Ofcom Say?

Businesses with fewer than 10 employees benefit from additional protections under Ofcom rules, which are intended to prevent customers being automatically locked into new fixed-term agreements without their express agreement. Once the initial term ends, contracts will typically continue on a rolling basis.

Larger businesses do not benefit from the same level of protection, meaning notice periods and renewal clauses are more likely to be governed by the contract itself.

Ofcom also requires providers to issue end-of-contract notifications to consumers and microbusinesses. These notifications can be easy to overlook, especially if they are sent to a generic inbox or someone who no longer manages the account.

Customer Example

A multi-site retailer believed its telecoms contract was nearing expiry and planned to review the market once the agreement ended. However, a missed notice period meant the provider considered the agreement renewed before those discussions had taken place.

Enconvo Insight

Discovering that your contract has renewed doesn’t necessarily mean your plans have to wait another seven years.

Before long, the renewal date is only weeks away and you’re being asked to decide whether to renew, switch providers or commit to a new agreement, often with limited time to properly assess your options.

As a result, many businesses stay with their existing provider because it’s the quickest and easiest decision, not necessarily the best one.

What Does Ofcom Say?

Ofcom requires providers to issue end-of-contract notifications to consumers and microbusinesses, helping customers understand when their minimum term is coming to an end and providing information to support informed decisions.

Larger businesses do not benefit from the same level of protection, making it even more important to understand key contract dates, notice periods and renewal terms well before decisions need to be made.

Customer Example

A manufacturing business knew its contract was due to end but delayed reviewing its options while focusing on day-to-day operations. By the time it began exploring alternatives, the renewal date was only weeks away.

Enconvo Insight

Whether you have five employees or five hundred, starting early gives your business more control, more flexibility and more time to make the right decision.

Since then, your business may have grown significantly. You may have introduced hybrid working, opened additional sites, expanded your workforce or adopted new technologies.

The problem isn’t necessarily the contract itself. It’s that the communications solution sitting behind it no longer supports the way your business operates today.

What Does Ofcom Say?

Ofcom places importance on customers being able to make informed decisions about their communications services. Providers are expected to provide clear information about contract terms and services so customers can assess whether their existing arrangements continue to meet their needs.

Larger businesses do not benefit from the same level of protection, making it even more important to understand key contract dates, notice periods and renewal terms well before decisions need to be made.

Customer Example

A professional services firm had grown from a single office to three locations and adopted hybrid working. While its existing phone system still functioned, it lacked the flexibility and collaboration tools the business now required.

Enconvo Insight

The best time to review your telecoms contract isn’t when it ends. It’s before your business outgrows the solution behind it.