Telco complaints at six-year low, data cost disputes rising

Complaints against telcos have fallen to a six-year low, although concerns about excess data charges have risen.

The Telecommunications Industry Ombudsman's (TIO) latest report for 2013-14 shows the number of complaints fell 12.4 per cent last year to just under 139,000.

Complaints are down 29 per cent over the past three years.

The report shows that complaints about mobile coverage and dropouts almost halved over the past year, which it attributes to improved infrastructure.

The ombudsman also noted a substantial reduction in complaint handling concerns, and a 20 per cent reduction over the past year in complaints about poor customer service.

Mobile complaints still make up over half the total but the Communications Alliance, which represents telcos, says there have been strong improvements in a range of areas.

"Almost across the board we saw encouraging results in the past year," said Communications Alliance CEO John Stanton in a statement.

"A 48 per cent fall in complaints about mobile service faults; mobile coverage issues down by 55 per cent; international roaming complaints down by 35 per cent, and sharp reductions in complaints about overall customer service and complaint handling."

Amongst the major telcos, Telstra reported a small rise in complaints to 58,009, while smaller rivals Vodafone and Optus both saw significant falls in disgruntled customers.

Several smaller internet providers bucked the trend, recording large increases in complaints, which was reflected in the overall figures showing complaints around fixed line and internet connection issues had risen by around a third.

Data charging disputes jump

However, one area that saw a steep rise in complaints was charges for excess data usage.

The number of complaints rose 27.2 per cent to 14,534, and the ombudsman says half of the complaints involved amounts of more than $440, including 56 cases where the disputed amount was above $10,000.

The ombudsman Simon Cohen says the rise came at a time when consumers were using more data on faster networks.

"This trend shows a risk that there's a gap between what's included in consumer plans and how much data they actually use, and it's one we'll be monitoring closely over the coming 12 months," he said.

Despite the commitment to monitor the practice, Mr Cohen said the TIO did not have the power to compel companies to change their plans.

"Our job is very much to report what consumers are saying is the cause of their complaint, and really to give that information to the consumers, to industry and the community, so they can think about appropriate ways to respond to them," he said.

Mr Stanton says Communications Alliance members have already undertaken initiatives to try and help consumers avoid unexpected data charges.

"The TIO has not been able to give us much context around these complaints and the result seems surprising because consumers receive three usage notifications – at 50, 85 and 100 per cent of their data usage allowance – to give them a good opportunity to avoid incurring excess data charges," he added.

Ombudsman steps in with large complaints

Coming home from an expensive European holiday can be depressing enough, so imagine opening your mail to discover a mobile phone bill in excess of half a million dollars.

This happened to one Australian traveller whose smart phone was stolen during his trip.

The thief made the most of the international roaming, racking up $571 thousand worth of charges that included calls to Somalia.

The victim's father disputed the bill on the basis that the theft had been reported to police, but the telecommunications provider insisted the full amount be paid, arguing the calls had been made from Australia.

An investigation was launched by the ombudsman, resulting in all charges being waived.

The ombudsman also cited the case of one small business owner charged $36,225 in excess data usage charges over just two months, after not having breached her data quota in the previous two years on that plan.

The highest usage allegedly occurred on a Sunday when the business was closed, and the TIO mediated with the provider which eventually waived the disputed charges.