Reviewing a business telecoms contract

A business telecoms contract ties phone numbers, lines, mobiles or a hosted system to a provider for a minimum term, on terms that decide whether the numbers belong to the business, what a call outside the bundle costs, and how much it costs to leave. The provider's terms operate under conditions Ofcom sets, which give small businesses protections that apply alongside the provider's document. I review the contract from the customer's side and return it marked up with a written explanation of what it commits the business to and the terms worth challenging, for a fixed fee of £495 in three working days.

Who this is for

Businesses in England and Wales signing or renewing a contract for business phone lines, SIP or hosted telephony, business mobiles or a unified communications service, whether with a network operator or a reseller, and want to know what the term, the charges and the exit provisions commit them to. The customer is a business; the Ofcom conditions give additional protection to businesses with ten or fewer employees.

What to look for in a business telecoms contract

The Ofcom conditions and the small business protections

Communications providers must comply with the general conditions Ofcom sets under section 45 of the Communications Act 2003, which regulate contract terms, contract information, renewal and switching, and give customers with ten or fewer employees protections close to those of consumers: a summary of the contract before signature, a ban on contracts that roll over into a new minimum term without the customer's express agreement, notice before the end of the minimum term, and a right to leave without penalty where the provider changes the terms to the customer's material detriment. The review confirms whether the customer is within those protections and reads the provider's terms against them.

The minimum term, the notice period and the renewal

The contract will set a minimum term, a notice period for termination and what happens after the term ends. The review checks that the provider cannot re-start a minimum term on a change or an upgrade, that notice can be given at any time before expiry, that the post-term arrangement is rolling with a short notice period, and that the provider must tell the customer when the term is ending, which the general conditions require of it.

Your numbers: ownership, porting and the risk of losing them

The business's telephone numbers are its customer-facing identity, and the general conditions require providers to allow number portability and to port numbers within set timescales when the customer moves provider. The review checks that the contract does not treat the numbers as the provider's property, that porting is not conditional on settling disputed charges, that the provider will not cease a number without notice, and that where the service is hosted the numbers are held with the underlying carrier in the customer's name.

Call charges, bundles and the out-of-bundle rates

The headline rental buys a bundle of minutes or a fair use allowance, and the out-of-bundle rates for international, premium and non-geographic calls, and for mobile roaming, are where the bills grow. The review checks the tariff, the provider's right to change rates on notice and the customer's right to leave when it does, the fair use policy, the treatment of lines and users added during the term, and the billing period and dispute procedure.

Service levels, faults and the hosted system

The contract should state the fault reporting process, repair times, compensation for loss of service and, for a hosted system, the availability commitment and the provider's own dependence on the customer's broadband. The review checks the service levels against what the business needs, the exclusions, the provider's liability for loss of service, which its terms will limit to a credit and which is tested for reasonableness under section 3 of the Unfair Contract Terms Act 1977 where the terms are the provider's standard form, and the ownership of handsets and equipment at the end.

Early termination charges and what the salesperson said

Early termination charges in telecoms contracts are the remaining rentals for the term, sometimes at the full rate, and Ofcom's conditions require them to be no more than the provider's loss. The review checks the charge against that and against the rule in Cavendish Square Holding BV v Makdessi [2015] UKSC 67, which strikes down a sum out of all proportion to the provider's legitimate interest. It also checks the contract against what the salesperson said about savings, the term and the cost of leaving, since a false statement that induced the contract is actionable under section 2 of the Misrepresentation Act 1967 and misleading marketing to businesses is prohibited by the Business Protection from Misleading Marketing Regulations 2008. The Late Payment of Commercial Debts (Interest) Act 1998 applies to sums the provider owes the customer.

What it costs

Standard review, £495. Marked-up document and a written explanation of the changes. Three working days.

Buying online forms the engagement on payment. The scope is what the contract review page describes, you accept the Terms of Service at checkout, and I email you within four working hours to get started. If you would rather ask something first, email me.

What you get

• Your own contract returned with my amendments as tracked changes, plus a clean version with every change accepted, ready to send to the other side
• Comments in the document where a point needs explaining
• A written explanation of what I have changed and why, by email or as an attachment if it is lengthy, marking the points I would hold firm on and the ones that are negotiable
• A view on what is normal market practice and what is the other side pushing their luck
• One round of follow-up questions by email, included

What is not included

• Negotiating directly with the other side, which I quote separately once I know who is on the other side. Where the other side is willing to share a live document, I can work in that document directly
• Drafting a replacement contract from scratch
• Advice on the law of any jurisdiction other than England and Wales
• Tax, accounting or regulatory advice
• Disputes about a contract that is already signed

Questions I am often asked

Our contract renewed for another three years without anyone agreeing to it. Is that allowed?

Not for a business with ten or fewer employees: Ofcom's general conditions prohibit a roll-over into a new minimum term without the customer's express agreement. The review checks whether you are within the protection and what the provider did at the end of the term.

Can we take our phone numbers if we leave?

You can, and the general conditions require the provider to port them within set timescales. The review checks that the contract does not treat the numbers as the provider's, that porting is not conditional on paying disputed charges, and that the numbers are held in your name.

The early termination charge is the whole of the remaining contract. Is that enforceable?

Only if it reflects the provider's loss, which Ofcom's conditions and the rule against penalties both require. The review calculates what the charge produces, compares it with the provider's real loss after the cost of providing the service is deducted, and sets out the challenge.

Related guidance and services

• Contract review, £495, the service this page describes
• Terms and conditions drafting, £995
• Reviewing a business broadband and IT contract
• Reviewing a business energy contract

This page is general guidance for businesses in England and Wales, not advice on your own circumstances. Last reviewed: September 2026. Email geoffrey@caesar.co.uk.