Managing contract periods under new German Regulations

On January 8, 2026, Germany's Federal Court of Justice (Case III ZR 8/25) ruled that minimum contract terms begin when customers sign, not when service activates. This changes how telecom operators must handle contract management, billing, and compliance.

The Court's Decision

Minimum contract terms start at contract signature, not service activation. Clauses defining the start as the activation date are invalid. This applies to all contracts, and consumer protection law overrides telecom-specific regulations. Economic arguments were rejected.

Why This Matters

Contract Lifecycle Management
Operators must track signature and activation dates separately. Minimum terms calculate from signature.

Customer Portals
Portals must display accurate termination dates based on signatures to avoid legal liability.

Operational Risks
Non-compliance leads to disputes, complaints, regulatory scrutiny, and reputational damage.

Legacy Systems Challenge

Many OSS/BSS systems calculate from activation, making them non-compliant. Systems must separate signature and activation dates, often requiring redesigned data models and business logic. Continued reliance on activation-based logic creates liability.

How Netadmin Ensures Compliance

Flexible Configuration
Netadmin supports three contract start models:

• Order Creation/Confirmation—compliant for Germany

• Requested Activation Date—customer's preferred start

• Actual Activation Date—when service goes live

Binding Period Enforcement
The system prevents early termination except by authorized users, ensuring compliance and control.

Market Adaptation
Netadmin adapts to market-specific requirements without customizations.

Billing and Compliance
Netadmin separates billing flexibility from contract term compliance. Installation fees can be billed at contract signing or activation depending on your product catalogue configuration. Periodic service fees typically begin at activation. Critically, billing timing does not affect contract term calculation—the minimum contract period always starts at signature, ensuring full regulatory compliance regardless of when charges begin.

Conclusion

The Federal Court's ruling is clear: minimum contract terms start at signature. Compliance is not optional. Operators using legacy systems that calculate from activation face immediate legal exposure. Netadmin's flexible contract start configuration, combined with binding period enforcement and separated date tracking, delivers compliance without customization. The question is not whether to adapt, but how quickly your systems can.