Action on telco consumer protections: April to June 2023

Protecting telco customers in financial hardship

In May 2023, we published the Financial hardship in the telco sector: Keeping the customer connected report and associated quantitative and qualitative financial hardship research reports. The findings in these reports clearly demonstrate that a range of rules in the TCP Code are not working effectively to protect consumers experiencing financial hardship. 

In June 2023, we completed investigations into 8 telcos’ compliance with financial hardship and disconnection notification rules in the TCP Code. We took enforcement action against all 8 telcos after they failed to provide adequate safeguards that help customers to avoid service restrictions, suspensions or disconnections.

Phone scams

Telcos blocked over 256 million scam calls in the quarter under the Reducing Scam Calls and Scam SMs industry code. This brought the total calls blocked to 1.4 billion since the code commenced in December 2020. Telcos also blocked over 85 million scam SMS in the quarter, with a total of 257 million blocked since the obligations commenced in July 2022. 

Our audit of SMS aggregators’ compliance with new ‘reducing scam calls’ and scam SMS rules remains ongoing.

Other telco compliance activities

We started 18 investigations into telco compliance with:

• legislation that requires telcos to join and comply with the Telecommunications Industry Ombudsman (TIO) scheme (8)
• TCP Code rules that set out telco advertising requirements (1) 
• TCP Code rules that set out telco billing requirements (1)
• IPND rules and various anti-scam rules, including to prevent identify theft and SMS scams (8).

We completed 21 investigations into telco compliance with:

• legislation that requires telcos to join the TIO scheme (5)
• TCP Code rules that set out how customers are notified of restrictions, suspensions and disconnections (8)
• TCP Code rules that require telcos to lodge statements of compliance with Communications Compliance in 2022 (3)
• IPND rules and various anti-scam rules, including to prevent identity theft and SMS scams (5).

Our compliance and enforcement outcomes for the quarter included:

• Directing 5 telcos – Exetel, Foxtel, Southern Phone Company, Spintel and TPG Telecom (Vodafone) – to comply with the financial hardship and disconnection notification rules in the TCP Code. We also directed Inspired Broadband Pty Ltd to comply with TCP Code rules to lodge statements of compliance with CommCom in 2022.
• Formally warning 3 telcos – Telstra (Belong), Optus Mobile and MyRepublic – about complying with the financial hardship and disconnection notification rules in the TCP Code. We also formally warned 4 telcos – Office Automation, Cellect Australia, Tri Corp Technologies and Fly On IT – for failing to join the TIO scheme. 
• Directing 1 bulk-SMS provider to comply with the Reducing Scam Calls and Scam SMs industry code.

View our finalised investigations into telco providers. Please note that we do not generally publish ‘no breach’ findings or investigation reports before taking enforcement action.

We started 35 compliance assessments and completed 30 compliance assessments into telco compliance with a range of consumer safeguards. These included TCP Code rules.

Completed compliance activities

We released the March 2023 telco complaints report. The weighted average time taken for customer complaints resolution was 5.2 days. This was down from 7.7 days for the same quarter last year.

Complaints per 10,000 services were down from 56 to 53. The TIO referral rate for complaints referred by the TIO to telcos declined from 8.7% to 7.2% from the same time in the previous year.

Key stakeholder forums

The Consumer Consultative Forum (CCF) allows consumer, industry and government stakeholders to meet and discuss telco issues affecting consumers. The ACMA also holds 2 online meetings each year for the consumer representatives to share information and set CCF meeting agendas. 

The CCF met in May 2023 and members received an overview of Communications Alliance’s revised Assisting Consumers Affected by Domestic and Family Violence Guideline and a snapshot of ACCAN’s research into billing arrangements. We also provided updates on our Financial hardship in the telco sector report, research, compliance and enforcement activities, TCP Code review work and efforts to address scams. 

Members shared their own experiences, noting a need for more information on the closure of 3G and concerns about issues facing rural and remote consumers. The consumer representatives will meet online in July 2023, with the next CCF meeting in October 2023.

In 2022–23, we made significant findings about customer financial hardship and the improvements that telcos should make to help these customers.

Protecting telco customers experiencing financial hardship

We will continue to advocate for telco customers experiencing financial hardship and focus on how telcos are complying with their obligations to support these customers, including by monitoring their direct debit and responsible selling practices.

Supporting telco customers experiencing domestic and family violence

The telco industry plays an important role in supporting Australians experiencing (or trying to escape) domestic and family violence. Helping these customers, who are a significant proportion of the population, to stay connected, and be able to access essential services and support is especially important.

We will assess how telcos assist customers experiencing domestic and family violence, and take action against telcos who don’t follow the rules.

Read more about our 2023–24 compliance priorities.

Access the data

Download the data for the charts in this report.

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Data file: Action on telco consumer protections: April–June 2023