MDDI's Response to PQ on Capping of Early Termination Fees Imposed by Telecom Operators on Consumers

Parliament Sitting on 7 July 2026

Question for Oral Answer

*104 Ms Yeo Wan Ling asked the Minister for Digital Development and Information (a) whether the Ministry has data on the number of times early termination fees were imposed by telecom operators on consumers in each of the past five years; (b) if so, what is the number; and (c) whether the Ministry will consider capping such fees to prevent excessive accumulation of charges where consumers are unable to pay.

Answer

The Ministry of Digital Development and Information (MDDI) and Infocomm Media Development Authority (IMDA) do not collect data on the number of times early termination charges, or ETCs, are imposed by telecom operators on individual consumers.

IMDA has in place safeguards to prevent unreasonable ETCs, which are captured in the Telecom Competition Code and advisory guidelines. First, contract periods cannot be longer than 24 months. Second, any ETC charged must be reasonably proportionate to any discounts given, and to the amount of time remaining on the contract. This effectively caps the ETC. Third, telcos must inform consumers of any applicable ETC upfront before subscription or upon renewal, and to obtain express written acknowledgement that consumers have understood these charges. IMDA will continue to monitor market developments and take enforcement action where operators are found to be in breach of these requirements.

Given the many telecom service offerings available in the market for consumers, including no-contract SIM-only plans, consumers can choose the services that best meet their needs.

*Converted to written answer