UK telecommunications regulatory authority Ofcom has clamp down on the prices operators charge to prematurely end home phone and broadband contracts.
The move has been supported by UK's biggest telecoms providers, and is set to allow consumers to switch more easily between service providers.
Ofcom, BT, Virgin Media, TalkTalk and others have agreed to slash early termination fees by almost 85 per cent, offering greater flexibility to consumers.
Speaking to Web User, Mike Wilson, mobiles and broadband manager at Moneysupermarket.com, said: “This seems to be a fair way to treat customers and should go a long way to ensuring people can move freely to better deals for their broadband and landline services.”
Currently BT charges up to £9 for every remaining month on a contract if a consumer decides to terminate early, while Virgin Media charges up to £29.99 per month remaining.
TalkTalk used to charge a £33.48 termination fee but introduced price changes on 1 June - but has agreed to charge between £8 and £9 per month.
Virgin Media has announced that it will implement changes in August, with BT doing the same in October.