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A report commissioned by the Australian Communications and Media Authority (ACMA) has revealed that telecommunications providers in the country are not doing enough to engage with customers having difficulty paying their connectivity bills.
While telcos are required by law to inform customers of hardship arrangements, many customers are still unaware of their options.
“It has never been more important to support customers who are doing it tough given the current cost of living pressures. While there are examples of good practice, the telco industry can and should do better,” said communications minister Michelle Rowland in a statement.
The same report also highlighted that financial hardship arrangements are “not being adequately tailored to individual circumstances, with limited options for how and when payments can be made.”
The report sourced data from telecommunications providers and independent surveys by Roy Morgan and OmniPoll Pty Ltd.
“If a consumer is experiencing financial hardship and needs help with their telco bill, I encourage them to contact their service provider to discuss what arrangements are available. However, if a consumer is unable to come to a satisfactory arrangement directly with their provider, they should then contact the Telecommunications Industry Ombudsman (TIO) for assistance,” said Rowland.
With telecommunications becoming essential, if not, critical services, the federal government is looking at ways to provide effective safeguards that support consumers to stay connected, and ensure they receive appropriate customer service and assistance, especially those in financial hardship.
This includes studying the consumer safeguards framework to determine whether it remains fit for purpose. This includes adequate protections to ensure telcos provide appropriate financial hardship assistance, credit management and billing processes, and to stamp out mis-selling and other practices that result in financial hardship.
The Government held a consumer roundtable with key stakeholders on 23 March 2023 to discuss the retail-level consumer protection framework. Participants included consumer and industry representatives, the Telecommunications Industry Ombudsman (TIO) and the ACMA. Minister Rowland is considering advice provided at the Roundtable, including calls for greater use of directly enforceable regulation and penalty reform.
