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Telco customers aren't happy, but rarely complain... why?

Many Australians don't do anything when their phone or internet services stop working. New research looks at why.

person cutting cord on phone with scissors
Last updated: 02 August 2024

Whether it's slow data speeds, service outages or issues with bills, nearly half of Australians don't complain when something goes wrong with their telco. 

A new report from the Telecommunications Industry Ombudsman (TIO) and the Consumer Policy Research Centre (CPRC) attributes this to "a worrying loss of trust" in telcos' ability to actually fix problems.

The report found that 55% of people had at least one problem with their telco in the past year, up from 41% in 2021. Of that group, 46% did not lodge a complaint with their provider. Most people said the process would be overwhelming, or they simply thought it wouldn't make a difference.

55% had at least one problem with their telco in the past year

"Clearly, too many people are reluctant to make a complaint because they don't believe it will help. There is work for telcos to do to demonstrate to customers that they take their concerns and complaints seriously," says the Ombudsman, Cynthia Gebert.

Even when consumers do complain, the process can be frustrating and time-consuming. Only 41% of people agreed that their complaint was resolved quickly, and only 30% said that their telco helped them understand their rights.

High cost of living 

People who are facing financial and personal challenges are likely to rely more heavily on their telco, the report found. This group of people is also more likely to have recently had a problem with their telco provider. 

"Australians are doing it really tough," says Chandni Gupta, deputy CEO of CPRC. "When a service doesn't work or you're not able to contact the customer support, it can further exacerbate the difficulties that you're currently experiencing."

This vital service costs Australian households an average of $134 a month

Australians rely on telcos for important parts of their lives: working online, paying for essentials, and searching for information. This vital service costs Australian households an average of $134 a month. 

"Telecommunications services are essential services, as important to Australians as the gas and electricity in their homes. It's never been more important to stay connected and when we are disconnected, the consequences can be dire," says Gebert. 

Most people aren't using the Ombudsman

The vast majority of consumers dealt with their complaints exclusively with their telco. Only 10% brought their complaints to the TIO. Even when an issue lasted for more than 30 days, most consumers continued to deal only with their telco.

This could be due to a lack of awareness of the Ombudsman. Only 9% of participants in the report could identify the TIO by name without prompting. When prompted, 43% said they were aware of them.

It should be easy to complain, it should be easy to go through the process, it should be easy to find who to contact in the first place

Chandni Gupta, Deputy CEO CPRC

Even people who recently had a problem with their telco were not any more aware of the ombudsman. 

What happens next?

To better look out for people in hardship, Gupta says, "We need to see Telcos taking it seriously, we need to have clear pathways to what dispute resolution looks like. It should be easy to complain, it should be easy to go through the process, it should be easy to find who to contact in the first place.

"We're asking telcos to meet people where they are and remove the barriers to accessibility. This might mean pro-actively offering payment plans, changing the way that they communicate with customers, and offering greater flexibility for customers to choose how they talk to their telcos," says Gebert.

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Stock images: Getty, unless otherwise stated.