Yes — but a binding period and remaining device instalments may apply; the old 6-month rule is from a repealed Act

Updated July 2026

📱 Can I cancel a phone or internet contract before the term ends?

With conditions

Quick answer

Yes, you can cancel a phone, internet or TV contract — but usually not free of charge if you are still within a binding period or owe instalments on a subsidised handset. The current law is the Electronic Communications Act no. 70/2022, in force from 1 September 2022, which replaced the older Act no. 81/2003. Under regulation no. 1350/2022 on information requirements for telecoms contracts, the contract must clearly state its duration, renewal and termination, so the terms should be known before you sign. The myth still going around is that a binding period may never exceed 6 months and that notice is always one month. That rule was in the old Act no. 81/2003 — which has been repealed — so it is an out-of-date benchmark you cannot safely rely on; the exact maximum binding period now depends on the current Act and your contract, and so is not asserted here but is best checked with Fjarskiptastofa (the Electronic Communications Office). What is certain: you keep your phone number when you switch, and disputes can go to the appeals committee for telecoms and postal matters.

📋 The rules

The current law is the Electronic Communications Act no. 70/2022 (in force from 1 September 2022), which replaced the older Act no. 81/2003 — rely on the new Act, not the old one.
Under regulation no. 1350/2022 the contract must clearly state its duration, automatic renewal, notice period and cost of cancellation before you commit.
Out-of-date benchmark: the rule that a binding period may never exceed 6 months with 1 month's notice was in the old Act no. 81/2003 and is repealed — do not rely on it as current law.
If you cancel within a binding period, remaining instalments on a subsidised handset or subscription may fall due; you do, however, have the right to keep your phone number when you switch.
You can complain to Fjarskiptastofa and refer a dispute about a contract or bill to the appeals committee for telecoms and postal matters; the Consumer Agency handles general consumer oversight.

🔓 Exceptions

If the contract is open with no binding period, it can as a rule be cancelled at short notice under its terms, with no penalty beyond what has already been used.
If the provider changes the terms or price unilaterally to your detriment, a right to cancel without penalty may arise — read the notice of change and the terms carefully.
Any remaining charges on cancellation should reflect the real unpaid cost (e.g. a handset); unreasonable barriers to switching provider are not compatible with consumer protection.

⚠️ Penalties & fines

Cancelling a telecoms contract is not a criminal matter — there is no basis for a fine here, only financial consequences that many underestimate. If you cancel within a binding period, remaining instalments on a subsidised handset, unpaid subscription charges to the end of the term and possible disconnection or admin fees under the terms may fall due. The hidden cost often lies in automatic renewal: a contract that renews automatically can bind you again if you do not cancel in time, which is why it matters to know the notice period the contract and regulation no. 1350/2022 must state. Another trap is the out-of-date 6-month rule: someone who treats it as current law may expect a lower cost or shorter binding than the contract actually allows, because that rule was in the old Act no. 81/2003, now repealed. The uncertainty can be resolved: ask for a written statement of remaining charges before you cancel, cancel in writing, and if you are unhappy with a bill or terms you can refer the matter to the appeals committee for telecoms and postal matters or turn to Fjarskiptastofa.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

Can I cancel a phone contract within the binding period?

Yes, you can cancel the contract, but if you are still within a binding period, remaining instalments on a subsidised handset and unpaid subscription charges to the end of the term may fall due. Cancellation is therefore possible but not necessarily free, so it is worth asking the provider for a written statement of remaining charges before you cancel.

Is the binding period always at most 6 months?

No, that is an out-of-date benchmark many wrongly remember, because the rule that a binding period could never exceed 6 months was in the old Electronic Communications Act no. 81/2003, which is repealed. The current law is Act no. 70/2022, so it is best to rely on it and your contract and check the terms with Fjarskiptastofa rather than trust the old figure.

Do I keep my number if I switch provider?

Yes, you have the right to keep your phone number when you move your business to another telecoms company, and it should be simple to transfer. This means fear of losing the number is not a good reason to stay stuck in a contract, though remaining charges on a handset or binding period can still follow the switch itself.

What if the provider raises the price or changes the terms?

If the company changes the terms or price unilaterally to your detriment, a right to cancel without penalty may arise, so it is important to read the notice of change carefully. The contract and regulation no. 1350/2022 must state the terms for cancellation, and if you are unhappy you can turn to Fjarskiptastofa or the appeals committee for telecoms and postal matters.

Where can I complain about a bill or a cancellation?

You can complain to Fjarskiptastofa and refer a dispute about a contract, bill or cancellation to the appeals committee for telecoms and postal matters, which handles such cases between consumers and telecoms companies. The Consumer Agency also handles general consumer oversight, so there are independent routes to a decision without going to court.

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