The Hidden Dangers of Long Term Telecom Contracts
The Hidden Dangers of Long-Term Telecom Contracts: A Trap for Small Businesses
Picture this: you’re a small business owner about to sign a contract for a new shiny phone system. The salesperson promises “rock-bottom monthly rates” and “future-proof technology.” Fast-forward a year or two, and you realise you’re stuck in a 7-year telecom contract with rising bills, extra charges you never expected, and no way out. And then it turns out the equipment isn’t even yours. Its leased.
Sadly, this isn’t just a scare story https://www.bbc.co.uk/news/articles/c5yg3y0qgexo — it’s happening every day to small businesses across the UK. Big-name telecoms providers have made an art form of tying companies into long, restrictive agreements that sound good on paper but quickly turn sour.
Why Long-Term Telecom Contracts Are a Problem
- Locked in for years
Many contracts run for 5–7 years. That’s longer than most SMEs keep the same office, staff setup, or even the same internet provider! Businesses change — but those contracts don’t. - Hidden costs in the small print
What looks like a cheap monthly deal often hides:
- “Free” handsets that are actually financed at inflated prices.
- Installation or “support and maintenance” fees you didn’t budget for.
- Annual price hikes buried deep in the terms.
And these long term telecom contracts are becoming more and more common and more and more businesses are being trapped and held back by them https://www.bbc.co.uk/news/articles/c74q4p8g9yjo
- No escape routes
If your system no longer fits your business, or you find a better deal, tough luck. Cancelling early often means paying thousands in penalties.
The Real-World Impact
We’ve spoken to businesses across South Yorkshire and North Lincolnshire still paying for old copper lines they don’t even use anymore — all because they signed a contract years ago and can’t get out of it. Others discover that “£20 a month deal” is actually costing double once the add-ons are factored in.
It’s not just frustrating. It drains cash flow, limits growth, and leaves business owners feeling powerless and trapped.
A Better Way: 30-Day Rolling Contracts
At KAT Communications, we believe small businesses deserve better. That’s why we offer:
- 30-day rolling terms — no 7-year traps.
- Transparent pricing — what you see is what you pay.
- Flexibility to grow — add or remove users as your team changes.
- Family values, not corporate tricks — because trust matters more than tying people down.
If your circumstances change, you’re free to adapt. No penalties. No nasty surprises.
Don’t Get Caught in the Trap
If you’re worried about your current contract, or unsure what you’re really paying for, we’ll happily review your telecoms agreement for free. No jargon, no pressure — just honest advice on whether you’re getting a fair deal.
Call us on 01302 260195 or email enquiries@katcommunications.co.uk to learn more.
