Media Release - Ombudsman report finds telcos must do more for vulnerable consumers
ACCAN
A new report from the Telecommunications Industry Ombudsman (TIO) has confirmed that telcos are falling short of their legal obligations to help Australians in financial hardship, and in some cases, they’re making things worse.
The report, Keeping Connected: Experiences of Telco Consumers in Financial Hardship, analysed 900 complaints made between April 2024 and March 2025, a full year after new financial hardship protections came into effect. It paints a clear picture of non-compliance, consumer harm, and regulatory blind spots.
“Mobile and internet services are not luxury items. They are something consumers really need and rely on,” said ACCAN CEO Carol Bennett. “And when you're seeing people make difficult decisions between staying connected and putting food on the table, then I think we've got a real problem.”
The TIO found telcos were denying payment extensions, demanding burdensome proof, charging late fees, and even referring debts of a person in hardship to collectors — all in breach of the rules. Some customers were disconnected while on active payment plans. Others were told to wait until their bills were overdue before help could be offered. In some cases, telco errors such as early direct debits or surprise charges, pushed people deeper into hardship.
“This is a failure on the part of the telcos, not only to comply with their obligations, but to treat people with respect,” Ms Bennett said.
“In our new Consumer Sentiment Tracker, 89% of Australians reported that their home internet is vital to daily life, while 76% said the same about their mobile services. Losing access to these services can be devastating.”
ACCAN is calling on the Australian Communications and Media Authority (ACMA) to conduct a transparent, public audit of telco compliance. With more than a year since the Standard was introduced, and clear evidence of harm, this must be treated as a regulatory priority.
"A key question is; does ACMA have the resources it needs to enforce the rules? The regulator’s responsibilities have grown and so must its capacity to act," Ms Bennett said.
In modern society, connectivity is essential. This report shows that without stronger oversight and real accountability, too many vulnerable Australians are being left behind.
About us:
The Australian Communications Consumer Action Network (ACCAN) is Australia’s peak communication consumer organisation. The operation of ACCAN is made possible by funding provided by the Commonwealth of Australia under section 593 of the Telecommunications Act 1997. This funding is recovered from charges on telecommunications carriers.
Contact details:
Alec Bennetts
Mobile: 0409 966 931
Email: [email protected]
