HiHi Early Termination Fee: How Much to Exit & What You Owe

The Question Nobody Wants to Ask Until It Is Too Late

If you have searched for the HiHi early termination fee, you are almost certainly looking at a quote from a competitor and trying to work out whether leaving early actually makes financial sense. Most HiHi customers only ask the question once they realise they are paying significantly more than the open market — and by then, they are mid-contract.

This article walks through how a HiHi exit cost is built, what each component is, and works through a typical small-business example so you can do the same maths against your own paperwork.

We are Compare The Networks, an independent OFCOM-regulated business telecoms comparison service since 2008. We are not affiliated with HiHi, 4Com, BNP Paribas Leasing Solutions or Propel Finance. Everything below cites public reviews, public regulatory information, or basic contract maths.

Why HiHi Exit Costs Are Higher Than a Normal VoIP Contract

A standard 24-month business VoIP contract from a transparent provider has one termination figure: remaining months times monthly fee, plus any agreed admin charge. One number, one bill, one settlement.

A HiHi exit is rarely one number. Reviewers on uk.trustpilot.com/review/hihi.co.uk and uk.trustpilot.com/review/4com.co.uk consistently describe at least two parallel agreements, sometimes three:

The HiHi or 4Com service contract (calls, lines, support, software)
A separate equipment finance lease for the handsets — typically with BNP Paribas Leasing Solutions or Propel Finance — often running 84 months (7 years)
Sometimes a maintenance or support add-on, billed separately

Each of those agreements has its own early termination mechanism, its own settlement calculation, and its own legal entity. To work out your true HiHi exit cost, you need a figure for each. See our HiHi contract length guide for how to identify which of these you are on.

The Four Components of a HiHi Early Termination Fee

1. Service Contract Early Termination Fee

The simpler of the two. Take the monthly service charge — calls, lines, platform — multiply by remaining months on the term. Some contracts allow a small discount for early payment (often only 5 to 10 percent), some do not.

Formula: monthly service fee × remaining months on service term = service ETF

If you are 18 months into a 36-month service agreement at £180 per month for the whole business, your service ETF is roughly £180 × 18 = £3,240.

2. Handset Finance Early Settlement Figure

This is the figure most HiHi customers underestimate. The handset lease is typically with a third party (BNP Paribas or Propel), it is non-cancellable, and the early settlement figure is calculated by the finance company — not by HiHi or 4Com.

Formula (typical): outstanding rentals + early settlement charge − unearned interest discount = early settlement figure

In practice, on a 7-year (84-month) lease, the early settlement figure looks very close to "remaining rentals × monthly handset payment." Reviewers describe minimal interest rebates. You must request this figure in writing from the finance company directly — HiHi cannot quote it for you.

3. Maintenance / Support Charges

If you have a separate maintenance line on your direct debit, check whether it carries its own term. Some are coterminous with the service contract; some run separately.

4. Administrative & Removal Fees

Some HiHi paperwork includes a "deinstallation," "engineer call-out," "decommissioning" or "removal" fee. These are typically £50 to £250 per visit. Read the small print.

Total HiHi exit cost = (1) + (2) + (3) + (4)

Worked Example: A 10-Handset Small Business

To make this concrete, imagine a typical small business — say a 10-person accountancy practice in the Midlands. The owner signed up with HiHi via 4Com 24 months ago and now wants to leave because a CTN comparison shows they could halve their bill on a proper hosted VoIP. Here is what an exit might look like.

Original Agreements at Sign-Up

HiHi service contract: 60 months at £230 per month (£2,760 per year)
BNP Paribas equipment lease: 84 months at £400 per month for 10 handsets, base unit and software (£4,800 per year)
Maintenance: £40 per month, coterminous with service (£480 per year)
Total monthly direct debits: £670 per month

Position 24 Months In

Service contract: 36 months remaining
Equipment lease: 60 months remaining
Maintenance: 36 months remaining (coterminous with service)

Exit Cost Calculation

Service ETF: £230 × 36 = £8,280

Handset finance early settlement (BNP): £400 × 60 = £24,000 (in practice may be slightly less after a small interest rebate, but reviewers describe figures very close to this number)

Maintenance ETF: £40 × 36 = £1,440

Removal / deinstallation: approximately £150

Total exit cost: £8,280 + £24,000 + £1,440 + £150 = £33,870 + VAT where applicable

This is consistent with the figures reviewers publicly describe. The Voyced "£54k for 5 phones" article and the BBC's 2025 investigation into 4Com (which named cases of £20,000+ for three phones) both reference exit and total-contract figures in this range.

Does Switching Still Pay?

The same business on a transparent 24-month hosted VoIP from CTN with handsets included would typically cost in the region of £200 to £300 per month for 10 users — call it £250. That is £420 per month less than the £670 they are paying now.

Annual saving on a switch: £420 × 12 = £5,040
Years to recover the £33,870 exit cost: roughly 6.7 years

In this example, the maths does not justify paying the full BNP early settlement figure. Settling out is rarely the right answer purely on cost — which is exactly why finance leases of this length are so commercially difficult to escape.

When Paying the ETF Does Make Sense

There are scenarios where settling early is rational:

1. The Handset Lease Is Already Near the End

If you are 60 months into the 84-month BNP lease, you only have £400 × 24 = £9,600 left. A 24-month switch to a £250 alternative saving £420 per month recovers that in under two years and you are still in profit for years 3 to 5.

2. The Business Is Being Sold or Restructured

A buyer may not want to inherit a 7-year lease. Settling can clean up the balance sheet for sale.

3. You Have a Genuine Misselling Claim

If the contract was mis-sold — wrong term explained, undisclosed finance company, signature you did not give — the right route is not to pay the ETF. It is to formally complain in writing, escalate to CISAS (the Communications and Internet Services Adjudication Scheme), and seek cancellation without penalty. See HiHi misselling and HiHi sales tactics for the legal basis.

4. The Finance Company Negotiates

Reviewers occasionally describe BNP or Propel agreeing a reduced early settlement figure when the alternative is litigation, deadlock at CISAS, or insolvency of the customer. This is rare but not impossible — and any settlement must be in writing.

How to Get Your Real Numbers — In Writing

Do not rely on a phone call with a HiHi or 4Com retentions agent. Email the following requests separately:

To HiHi / 4Com

"Please confirm in writing, by email to this address: (a) the exact end date of my service contract, (b) the exact monthly service charge, (c) the early termination fee if I were to leave today, and (d) any deinstallation, removal or admin charges that would apply."

To BNP Paribas Leasing Solutions or Propel Finance

"Please confirm in writing, by email to this address: (a) the original lease term and start date, (b) the current outstanding balance, (c) the early settlement figure if I were to settle today, and (d) the breakdown of how the early settlement figure is calculated."

You need both responses in writing before you can make a sound decision. Do not accept verbal numbers. Do not agree to anything on a phone call. If a retentions agent calls you, the response is always the same: "Please put that in writing and email it to me."

What to Watch For in the Quote You Receive

When the figures come back, sense-check them against these patterns reviewers describe.

Auto-renewal in the small print. Some HiHi service contracts auto-renew if you do not give notice in a tight window (often 90 days). If you missed a recent renewal window, your "remaining months" figure will be far higher than you expect. See HiHi contract length.
A handset lease term that does not match the service term. This is the source of most HiHi exit-cost shock. The 7-year handset lease keeps running long after you have served notice on the service.
An "upgrade" mid-contract that reset the lease. Reviewers describe being offered a shiny new handset 18 to 24 months in, signing a "minor variation," and discovering the lease clock restarted at 84 months. If this has happened to you, that is a misselling concern in itself — see HiHi misselling.
Stacked admin fees. "Engineer site visit," "decommission," "data wipe," "kit collection." Each is small individually, but they add up.

What CTN's Switching Promise Does and Does Not Cover

CTN does not magic away the HiHi early settlement figure. No competitor can — that liability sits with BNP Paribas or Propel as a separate finance contract. What we do is pay agreed contribution amounts towards exit fees on your new CTN deal, terms apply. See our switching promise page for current detail.

The honest pitch is this: if your maths works (the saving recovers the exit cost in a sensible window), CTN can help with part of the cost. If your maths does not work, the right answer is usually to stay until the lease ends — or, if there is a genuine misselling angle, to take the CISAS route rather than pay.

Frequently Asked Questions

How much is the HiHi early termination fee?

There is no single number. A typical HiHi exit is the sum of (1) remaining months on the service contract × monthly service fee, (2) the early settlement figure on the separate BNP Paribas or Propel handset finance lease, (3) any maintenance ETF, and (4) admin or removal fees. Reviewers publicly describe total exit figures from a few thousand pounds to over £30,000 depending on lease length remaining.

Why is the HiHi handset lease separate from the service contract?

Because the handsets are financed by a third-party leasing company — typically BNP Paribas Leasing Solutions or Propel Finance — not by HiHi or 4Com. Settling the service contract does not settle the lease. You must request an early settlement figure from the finance company directly.

Can I just stop paying HiHi to force a settlement?

No. Missed payments on the finance lease can trigger debt collection and damage the business principal's credit file. They also weaken your position if you later want to challenge the contract on misselling grounds. Always pay while in dispute and pursue the formal complaints route in writing.

Will HiHi waive the early termination fee?

In normal commercial circumstances, no. They may offer a small reduction in retentions. Waiver typically only happens when there is a genuine misselling case escalated to CISAS — and that requires a written complaint, an 8-week wait or deadlock letter, and submission of evidence to the adjudicator. See HiHi misselling.

Is paying the HiHi exit fee tax-deductible?

For most UK businesses the early termination fee is treated as an allowable business expense (revenue cost) in the year it is settled, and any handset lease early settlement is similarly allowable. Speak to your accountant — this is general information, not tax advice.

Decide With the Real Numbers

Get a free VoIP quote and we will price your replacement on a transparent 24-month basis with handsets included or rented separately — no 7-year leases, no hidden finance company. Take that price, add it to the exit numbers you get back from HiHi and BNP / Propel, and decide.

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About this article. Claims reported here are attributed to public reviews on Trustpilot and similar platforms. They represent the opinions of the reviewers cited, not statements of fact by Compare The Networks. Brands named may dispute these claims. If you are a brand representative who believes any content requires correction, please contact us.

HiHi Early Termination Fee: How Much to Exit & What You Owe (2026)