Monday, November 7, 2011

Smartphone take-up sparks jump in complaints

Big consumer complaints

Source: Yahoo 7 News
ABC
Updated November 8, 2011, 3:30 pm

The telecommunications watchdog says Australia's high smartphone use has driven another big jump in the number of complaints against telcos.

Almost 200,000 people - an increase of almost 18 per cent - reported an issue with their mobile, internet or fixed-line account in the 2010-11 financial year.

Of those, more than 110,000 related to mobile phones, a jump of more than 50 per cent.
Ombudsman Simon Cohen says Vodafone was the worst offender, with triple the number of complaints recorded in the previous year.

"What we've seen this year is almost an explosion of complaints in relation to mobile telephones," he said.

"More than 32,000 of these new mobile service complaints were about Vodafone and its much publicised network and customer services issues."

Mr Cohen says service faults and dropouts were the biggest concern, followed by billing disputes and data-use charges.

Mr Cohen says Vodafone cannot cop all the flack. Of the other big providers, Optus recorded a 5 per cent increase in complaints, while Telstra's fell 3 per cent.

"In fact, only Telstra of our top 10 service providers had a reduction in the number of complaints we received," Mr Cohen said.

He says more has to be done to ensure people know what they are buying because the contracts to buy and run smartphones are difficult for customers to understand.

"These billing and credit management issues are serious, they affect some of the most economically and socially vulnerable consumers in Australia," he said.

'Working hard to improve'
But while the annual result is poor, the most recent quarterly figures show the situation is improving.
Communications Alliance head John Stanton says carriers seem to be responding to the complaints.
"What we did see, thankfully, is about a 15 per cent improvement in the last quarter of the financial year as several carriers start to or continue the improvement of their performance," he said.

"Overall the annual result is a poor one. The industry acknowledges that and is working hard to improve on it. But the trend we are seeing, which I think will continue, is for a reduction in complaint numbers."

The surge in complaints over the last year comes despite a period of intense scrutiny of the industry.
The Australian Communications and Media Authority recently released an 18-month review into the issue of customer service.

The industry has been forced to revise its own self-regulatory code but it has dodged any major toughening up of the external regulatory environment.

Australian Communications Consumer Action Network chef executive Teresa Corbin is sceptical that that will lead to a major reduction in complaints.

"The great problem with that code is that it will be voluntary unless the regulator directs people to comply with it," she said.

"So what we really need when it comes to complaint handling is regulation. We need a service provider determination or standard that's linked with a penalty so there are consequences when complaint numbers don't go down."