Telco complaints a symptom of cost-of-living crisis
Cash-strapped Australians fear being cut off from their phone and internet services as telcos refuse to support struggling customers, resulting in a spike in complaints.
Reports to the telecommunications watchdog about financial hardship or repayment issues spiked by 71.9 per cent between January and March, compared to the same period in 2024.
Despite complaints falling 8.2 per cent since the previous quarter, the Telecommunications Industry Ombudsman remains concerned.
Telcos need to do more to make sure people get the support they need if they're struggling to keep on top of bills, ombudsman Cynthia Gebert said.
"It's a stark reminder that the cost-of-living crisis continues to impact communities across Australia," she said.
Recurring themes included companies refusing payment plans or extensions, offering unsuitable payment arrangements and service disconnection, suspension or restriction.
Family violence and ongoing health issues rendered Parisa's (not her real name) bills unmanageable.
She tried to work out a payment plan with her provider but the $200-per-month offer was unachievable.
She told the ombudsman late fees continued to accumulate and she worried her services could be cut off.
Telcos lack tailored support and repayment options for customers, the ombudsman said, suggesting disconnection should be a last resort.
"People don't want to be in debt, but they need payment plans they can actually afford," Ms Gebert said.
Australians lodged 15,385 complaints about their phone and internet services, marking a 0.6 per cent increase since the previous quarter and a drop of 2.1 per cent compared to the same period in 2024.
Poor mobile coverage reports rose 25.3 per cent, with Telstra accounting for more than half of them, while about one in 10 complaints involved the recent 3G network shutdown.
For Danny (not his real name), who lives in remote Australia prone to bushfires and flooding, the issue is one of life or death as he relies heavily on mobile service to contact emergency services and stay up to date with hazard information.
He is increasingly worried about his family's safety due to ongoing problems with reliable mobile phone service, which means he can't contact emergency services when he has no connection.
Small business complaints rose for the second quarter to 1767, up 6.9 per cent, with the most significant increases related to poor mobile coverage and intermittent service or dropouts.
Persistent mobile and internet problems are seriously impacting small businesses' ability to provide good customer service and operate efficiently, Ms Gebert said.
"It can impact their reputation, customer service and ability to trade - ultimately it affects people's livelihoods and ability to feed their families," she said.
Inadequate fault testing, where issues were not fixed, had the largest increase in complaints - up 26.9 per cent.
Complaints were up across the board except in Queensland, where they fell 6.6 per cent since the previous quarter.
NSW had the highest number of reports with 4850, while Victoria had the highest complaints per 1000 people.
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