ACMA thinks operators are not doing enough to support those struggling to pay their bills, with many customers also unaware they can turn to their provider for help
Telcos urged to improve support for vulnerable customers: A new report from the Australian Communications and Media Authority (ACMA) claims that the telecoms industry continues to let down customers who are struggling financially. The regulator’s study (its fourth in the ‘financial hardship’ series) found that in the last 12 months almost 2.4m Australians experienced difficulty paying for telecoms services or had concerns about their bills. Interestingly, operators appear not to consider the problem so great. Data from major telcos reported 4,388 residential financial hardship customers as of 30 June 2022, equivalent to 0.03% of all residential subscribers. The research – which ACMA will use as it reviews the Telecommunications Consumer Protections Code – also showed that just 57% of individuals, and 64% of those who ran into financial challenges over the past year, were aware they could contact their provider for help managing payments.
The report identifies areas where the industry should up its game: With the rising cost of living, ACMA considers that operators need to be “even more attuned” to the needs of customers who may be facing difficulty. The report, however, identifies a range of issues affecting telecoms consumers, including that:
Younger Australians are less likely to be aware that financial hardship assistance is available from telcos, with only 50% of those aged 18-34 aware they could ask their provider for help;
Consumers who reported financial difficulties or concerns with their telecoms bills reported it was rare for operators to initiate contact, especially human contact, in relation to potential financial hardship;
Telcos were generally seen as being less well-equipped and with fewer assistance options than water and electricity providers;
Telcos were all seen as less flexible when dealing with customers in financial hardship than other service providers; and
Direct debit payments could become problematic at times of financial difficulty, adding to stress and incurring extra fees.
Telecoms is an essential service that requires appropriate protections: Affordable, reliable connectivity has become crucial, but financial pressures can happen at any time and for many reasons. According to ACMA, “contemporary, effective protections” are vital and should be commensurate with the role of telecoms as an essential service. That said, the regulator’s report will not make for pleasant reading for the sector, outlining several shortcomings with operators’ behaviour and practices. It follows a year on from ACMA’s Statement of Expectations for how operators should identify and support vulnerable consumers, and just months after Telstra was found to be failing to comply with its ‘priority assistance’ obligations. Requirements on telcos therefore look set to become stricter, particularly around transparency, flexibility and disconnection of service, which is highlighted in ACMA’s 2022/23 compliance priorities.
