Telecoms | UK Regulatory Outlook October 2026

CMA draft subscription contracts guidance: considerations for telecoms providers offering bundled services

The Competition and Markets Authority (CMA) has published draft guidance on the draft Consumer Subscription Contracts (Cancellation and Information) Regulations 2026 (SCRs). The SCRs, together with the Digital Markets, Competition and Consumers Act 2024 (DMCCA), regulate business-to-consumer subscription contracts, setting out traders' duties when they offer such contracts and consumers' rights when they enter them. Among other topics, the guidance addresses how the subscription rules interact with bundled service offerings, an issue of particular relevance to providers who supply telecommunications services together with other subscription-based services (for example, TV and streaming).

The telecommunications exclusion

The DMCCA provides that a contract for the supply of goods, services or digital content by a person who is bound, in relation to that supply, by a general condition set by Ofcom under section 45 of the Communications Act 2003 is an excluded contract and not subject to the subscription rules.

How the guidance treats bundles

The guidance addresses the scenario where one product in a bundle is within the scope of the subscription rules and another is excluded, for example, where a gym membership, streaming service or visitor-attraction membership is bundled with a bank account or mobile phone contract.

The guidance states that, as a starting point, traders should consider whether the products forming part of a bundle are supplied under a single contract or separate contracts. Where products are supplied under separate contracts, each contract should be considered separately against the DMCCA's definition of a subscription contract. Where they are supplied under a single contract, the inclusion of an excluded product does not mean that the whole contract is excluded. The contract will be "excluded from the subscription rules only if, and to the extent that", it falls within one of the excluded categories of service under the DMCCA (for example, Ofcom-regulated contracts).

Dual regulatory compliance

The guidance specifically addresses bundles that include TV streaming regulated under the subscription rules alongside broadband regulated under the Ofcom bundle rules, stating that traders will need to "consider the specific facts, circumstances and contractual arrangements in place and meet the requirements of each applicable regime".

Why it matters

Where a communications provider offers a bundle containing an element excluded from the DMCCA subscription rules (such as broadband) alongside a non-excluded element (such as a TV streaming or pay-TV service), it will be necessary to consider how to comply with both the subscription rules and the Ofcom General Conditions. This will potentially be a complex exercise, when taking into account the application of Ofcom rules to bundles and multiple linked contracts.

The subscription rules apply to subscription contracts entered into on or after 1 January 2027.