Attention, customer: extended term of the fibre contract

Customers should be cautious when signing fiber-optic internet contracts due to potentially excessive contract durations, according to a recent warning from heise online. The publication highlights how telecommunications providers often use complex clauses and unfavorable conditions to keep customers bound for extended periods. These tactics can lead to financial burdens for consumers who may not fully understand the terms of their agreements. The issue centers around the legal framework governing telecommunication contracts. Under German law, the initial minimum contract duration for such services typically does not exceed 24 months. After this period, the contract continues indefinitely, allowing customers to terminate it with a one-month notice. However, there is a critical nuance: the start date of the contract may not necessarily coincide with the day the agreement is signed. For example, a customer switching providers might sign a new contract before the old one expires, meaning the new contract’s term begins on the chosen start date. This rule changes significantly for fiber-optic connections. A landmark ruling by the Federal Court of Justice on January 8, 2026, clarified that for fiber-optic contracts, the minimum term starts immediately upon signing the agreement, even if the connection has not yet been installed or activated. This decision was made because many fiber-optic contracts are signed before the physical installation is complete, which allows providers to set a 24-month minimum term from the outset. This practice effectively prevents customers from terminating the contract early unless they meet specific criteria, such as relocating to an address where the provider cannot offer service. Consumers have limited rights to terminate their contracts before the 24-month mark. Only under very narrow circumstances, such as moving to an area where the provider cannot deliver service, is a premature termination allowed. Simple moves, like relocating to a shared apartment where another tenant already has an internet connection, or moving in with a partner, do not qualify for early cancellation. To protect themselves, consumers are advised to carefully review the entire contract duration and not just focus on monthly costs. It is recommended to inquire with the provider's customer service shortly before the end of the minimum term, especially if considering a switch to a competitor. A polite inquiry can sometimes result in better offers. If the provider does not respond, a formal notice of termination can strengthen the consumer's position. Mentioning competitive offers during negotiations can further encourage the provider to adjust its terms. It is also crucial to be aware of so-called “star” prices, where the initial rate is low but increases sharply after a few months. Extending the contract under new customer conditions usually requires another 24-month commitment, limiting flexibility. Contracts with shorter terms, such as one month, offer more freedom but may come with higher setup fees or the loss of initial discounts. Consumers must remain vigilant regarding additional charges associated with changing tariffs within the same provider. Some providers charge transition or setup fees, which may not always be justified. If these fees apply solely to a tariff change without technical modifications, they could constitute an unjustified disadvantage under Section 307 of the German Civil Code (BGB). This applies particularly when the fee is charged for a service that is not actually delivered.