From time to time, customers may have disputes with telecommunications service providers about renewal and termination of service contracts, and sometimes the disputes are due to inconvenient or cumbersome procedures which need to be followed by customers for effecting renewal and termination.

Under the Industry Code of Practice for Telecommunications Service Contracts ("Industry Code"), renewing or terminating telecommunications service contracts will be simpler and more transparent to better protect the interest of consumers. In summary,

• Arrangement for confirmation of extension, renewal of terms or replacement of contract
  The written confirmation will be dispatched by post, or by the optional reasonable means offered by the service provider as agreed by the customer.
• Notification the expiry of fixed-term of contracts
  1. Telecommunications service providers must notify customers of the impending expiry of the term of the contracts, no more than 60 days and no less than 30 days in advance, or provide reasonable means for them to check the expiry dates; and
  2. No automatic renewal of contracts unless otherwise agreed by the customers.
• Arrangement upon the expiry of fixed-term contracts
  The contract must specify –
  1. whether the service will continue to be provided to the customer after the expiry date; and
  2. the charges payable by the customers if the service is to continue after the expiry of the term.
• Contract Termination
  If a customer would like to terminate a contract upon the expiry of the fixed term, –
  1. he/she must not be obliged to give the service provider more than one month’s prior notice of termination; and
  2. the arrangement for termination (e.g. notification to the service provider, return of customer premises equipment) must not cause inconvenience to customers or involve unreasonable delay. For example, the service provider is encouraged to, where appropriate, (1) make the service termination form available on website for download, (2) accept any written termination request, (3) acknowledge the receipt of any verbal, written or in person service termination request promptly, and (4) handle the termination request promptly without unreasonable delay. No additional service charges other than reasonable and proper incidental costs should be incurred in effecting the contract termination notice.
• Early contract termination
  Consumers may choose to terminate their contracts before the expiry of the fixed term. However, consumers are reminded that early termination of a term contract may be subject to the payment of an early termination charge. Under the Industry Code, service providers must specify in the contract the fact that a specific charge may apply in the event of early termination.

Back