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Section 124U: Rights of end-users in relation to contract termination

Communications Act 2003 · 2003 c. 21View on legislation.gov.uk

Part 2: Networks, services and the radio spectrum — Chapter 1: Electronic communications networks and services

Where an end-user has (whether under an enactment or at common law) the right to terminate a contract for a public electronic communications service before the end of the agreed contract period—

no compensation is to be due by the end-user, except compensation for any retained terminal equipment;
if the end-user chooses to retain terminal equipment to which the contract relates—
the compensation payable for the equipment is not to exceed the amount determined under subsection (2); and
on payment of the compensation, the provider must lift any conditions restricting the use of the terminal equipment on an electronic communications network of another communications provider.

The maximum amount of compensation is whichever is the lesser of the following—

the remaining part of any fee for the service until the end of the agreed contract period; or
a proportion of the value of the terminal equipment, as agreed at the time of the conclusion of the contract, corresponding to the proportion of the agreed contract period that remains unexpired.

Where the public electronic communications service is a transmission service involving an automated transfer of data and information between devices or software-based applications with limited or no human interaction, subsection (1) does not apply unless the end-user is a qualifying end-user, as defined by section 51(9).

Where the contract referred to in subsection (1) is, or is included in, a bundled contract, subsection (1) applies to all the elements of the bundled contract, unless the end-user—

falls within paragraph (b) or (c) of the definition of "qualifying end-user" in section 51(9); and
has waived the rights conferred by this subsection.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.