Mobile connectivity is more important to everyday life than ever before, but new data released by the telecommunications industry ombudsman (TIO) paints a dire picture of how telcos are failing their most vulnerable consumers.
Released earlier this week, the new Keeping connected – Experiences of telco consumers in financial hardship report called on Australian telco providers to better recognise and respond to financial hardship. Beyond just reviewing their existing practices and policies, the TIO called on telcos to more proactively identify and address the ways that their actions contribute to financial hardship.
According to the report, quarterly complaints relating to financial hardship rose as high as 87.6% when compared to the same period of the previous year. The data also highlighted a disproportionate increase in the share of overall complaints made to the TIO for mobile services.
More broadly, the report called attention to concerning patterns of consumer detriment on the part of Australia's telecommunications providers. It cited a number of examples of what this can look like, from customers being told to wait until their financial problems get worse, to not waiving charges as promised or reneging on a payment arrangement for no apparent reason.
"We also saw examples of telcos inadvertently creating or exacerbating financial hardship through direct debit errors and unexpectedly high bills," it said.
In response to the report, Australian Communication Consumer Action Network (ACANN) CEO Carol Bennett reiterated the need for telco providers to understand that mobile and internet connectivity are not a luxury but an essential for modern Australians.
Citing some of the examples featured in the report, she said that the data painted a picture of non-compliance, consumer harm and regulatory blind spots.
“This is a failure on the part of the telcos, not only to comply with their obligations, but to treat people with respect,” Ms Bennett said.
Noting that it has been over a year since new financial hardship standards were introduced by the Australian Communications and Media Authority (ACMA), she called for a formal audit of telco compliance.
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