Financial stress, dodgy service: telco issues dial up
Australia’s telecommunications industry continues to struggle with major challenges; Customer complaints about financial difficulties and dodgy services continue to increase.
The industry’s ombudsman admitted he was “particularly concerned” by data about a 46 per cent increase in consumers not receiving a fair and reasonable outcome when they went to telcos to help them pay their bills.
The Telecommunications Industry Ombudsman’s annual report dropped just weeks after Optus’ deadly triple zero outage, sparking much debate about the industry’s management and oversight.
Ombudsman Cynthia Gebert said the increase in these complaints was unacceptable, given a new industry standard that forces telecommunications companies to support customers in financial distress.
“This increase is people who are already reaching out to telcos, reaching out for a payment plan, a deferral or a solution that will work for them, and not having a fair and reasonable outcome,” he told AAP.
“These aren’t just numbers; these are real people choosing telecom bills over food or rent because they’re worried they’ll be disconnected from the central service.”
Complaints of financial hardship were matched by a 69 percent increase in reports from people without a working mobile service, while there was also a 25 percent increase in the number of people with poor coverage.
Optus’ outage in September was linked to three deaths and was the second time in two years that network problems prevented Australians from accessing the emergency line.
The incident became the subject of an Optus investigation and a federal communications watchdog investigation, while calls for stronger oversight, including proper implementation of triple-zero retention, have also emerged.
Some, including telecommunications expert Mark Gregory, have labeled the industry the “wild west” for its self-regulated nature and argued that new laws and regulations are needed to stop “cowboys” running the show.
Ms. Gebert said there was room for industry-focused regulations, especially on technical issues.
“But we’ve been calling for improvements for a long time for other things that go to the heart of consumer protection around essential services,” he said.
“We want to see a regulator empowered to take action and funded to do so, but equally the industry is stepping up and recognizing its obligations to the people it is here to serve.”
Ms Gebert said a bill before parliament that increases the penalties the Australian Communications and Media Authority can impose for breaches of industry rules and standards could provide a much-needed “big stick”.
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