What are business mobile upgrades?
Business mobile upgrades are the point where you swap handsets on a business contract, usually by agreeing a new minimum term. It sounds routine. It is also where a lot of firms quietly agree to another long commitment without reading the terms.
Most owners do not think about business mobile upgrades until a phone breaks or an employee complains. That is the Do Nothing Default in action: the old contract rolls on, the handset gets slower, and nobody asks what the arrangement is costing.
This guide uses Ofcom’s advice for businesses on contracts, which you can read on Ofcom’s contracts page. Some of the protections it describes apply to small businesses with ten employees or fewer, so check which side of that line you sit on.
How long can a business mobile contract run?
For a small business consumer, Ofcom says the contract length should not exceed 24 months. A small business consumer is a business with ten employees or fewer. That is a useful cap when you are looking at business mobile upgrades that come with a new handset.
Ofcom frames the 24 month point for small business consumers, so if you have more than ten employees, read the minimum contract period in your own terms. Do not assume a longer term is normal just because it is offered.
Ofcom also says you should pay particular attention to the minimum contract period when choosing a service and provider. It is the minimum length of time you must take the service, and cancelling early may mean paying early termination charges.
Can business mobile upgrades extend your contract?
They should not do so without your consent. Ofcom says that for a small business consumer, your contract duration should not be extended when you buy additional service unless you have given consent.
In practice, that means a new handset on a new plan is a new agreement and you should treat it as one. Ask for the new minimum term in writing, the monthly price and the date the term ends.
A small business consumer should also receive a one page contract summary in writing before agreeing, according to Ofcom, setting out key information such as charges, the length of the contract and how to cancel. If you are offered business mobile upgrades over the phone, ask for the summary before you say yes.
Key takeaways on business mobile upgrades
- Small businesses (ten employees or fewer): contract length should not exceed 24 months, says Ofcom.
- A new service should not extend your contract without your consent.
- Ask for the contract summary, price and end date in writing before you agree.
- Check early termination charges, notice periods and any extra costs.
What should you check before business mobile upgrades?
Start with the monthly price. Ofcom says the amount you pay each month should be provided clearly before you sign up. It may be a single fixed price for the term, or a price that starts at one level and then rises on a set date. If a rise is agreed at the outset, you will not have the right to exit without penalty when it happens.
If your provider increases prices beyond what you agreed, Ofcom says it must give you at least one month’s notice and a right to exit the contract without penalty. That is worth knowing if business mobile upgrades are tied to a price you did not expect.
Next, check the exit. Ofcom says providers should make sure their conditions for ending a contract do not make it harder to change provider, for example through excessive early termination charges or excessively long notice periods. Check what you would owe if you left before the end, and what notice you need to give.
Then look for extra charges. Ofcom lists costs for additional parts of the service, costs to leave early, costs for paper billing, costs for roaming and costs for not giving enough notice when you cancel or switch.
Finally, ask about service levels. Ofcom says your contract may come with a service level agreement, which can cover things like fault repair times and coverage levels. Ask what support you get when a handset fails, because a dead phone is a lost customer call.
Should you upgrade, or switch provider?
It depends on what the new handset really adds, and what business mobile upgrades would cost you over the full term. A quick way to test it is to add up the monthly price across the whole contract and compare that with other routes, such as a SIM only deal and buying the phone outright. Our guide to buying or leasing business mobile phones walks through that choice.
If you do switch, Ofcom says that when you use the Auto Switch process to move to a new mobile provider, your current provider must not charge you for notice period running after the switch date. Our guide to PAC codes explains the process.
Fixed, flexible and rolling terms all have trade offs. Our guide to business mobile contracts compares them, and mobile plans for small businesses looks at SIM only against handset deals.
Whichever route you take, do the comparison before you accept one of the business mobile upgrades on offer, not after. A few minutes now can save a long argument with your provider later.
Frequently asked questions about business mobile upgrades
- How long should a small business mobile contract be?
- Ofcom says that for a small business consumer, with ten employees or fewer, contract length should not exceed 24 months.
- Can a new handset extend my business contract?
- Ofcom says a small business consumer’s contract duration should not be extended when they buy additional service unless they have given consent.
- What notice must my provider give of a price rise?
- If your provider increases prices beyond what you agreed, Ofcom says it must give at least one month’s notice and a right to exit without penalty.
- What is a service level agreement?
- Ofcom says a service level agreement defines the service you are provided and outlines support and problem resolution. It may cover fault repair times and coverage levels.
- Can my old provider charge notice after I switch?
- Ofcom says that if you switch mobile provider using Auto Switch, your current provider must not charge you for notice period running after the switch date.
