Understanding Phone and Internet Issues in Australia

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Roland Roberts
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1 Understanding Phone and Internet Issues in Australia

2 INTRODUCTION Introduction The Telecommunications Industry Ombudsman undertook a comprehensive survey of Australians in each state and territory to understand their experience of their phone and internet services. The aim of the survey was to support the complaint data received by the Telecommunication Industry Ombudsman. Additionally, the survey offered the opportunity to widen understanding of the issues experienced by residential consumers and small businesses in receiving phone and internet services, and the challenges telecommunications providers experience in delivering services. The survey was the most comprehensive undertaken by the Telecommunications Industry Ombudsman. Nearly 3000 Australians across all demographic groups were surveyed. Groups were classed as residential consumers or small businesses because the Telecommunications Industry Ombudsman has jurisdiction to manage complaints about phone and internet providers for these groups. Survey respondents were asked how many phone or internet issues they have experienced, and what problems these issues involved. Respondents were also asked about their experience of the management of their complaints. Methodology Format Platform Duration Online 15 minutes Fieldwork dates October 2017 Independent research agency Kantar TNS Sample Target Residential consumers (general public), including culturally or linguistically diverse consumers (CALD) Small businesses with fewer than 20 employees Location Gender National Male and female Age TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 2

3 KEY TAKEOUTS Key findings 1 One in two Australians had experienced an issue with their phone or internet service in the last 12 months per cent of residential consumers had more than one phone or internet issue over the last year. 3 Almost 60 per cent of small businesses identified a phone or internet issue affecting their business. 4 More than half of Australians who reported an issue considered their phone or internet service problem as serious or very serious. 5 One in four phone or internet issues experienced by residential consumers were not resolved after four months. 6 Consumers want to deal with a trustworthy and competent organisation to resolve their complaint. TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 3

4 WHO ANSWERED THE SURVEY Who answered the survey?* Sample Residential consumers (including culturally and linguistically diverse consumers n=456) Small businesses fewer than 20 employees n=2215 n=504 Location NSW + ACT 34% VIC + TAS 28% QLD 20% SA 7% Total n=2719 WA 11% NT 1% Metro 67% Regional 32% Gender Male 49% Female 51% Culturally and linguistically diverse CALD consumer 20% Age % % % % % Including speak another languange than English Including have lived in Australia for less than 20 years 13% 14% *Quotas and weighting are based on ABS data: Consumers: 2016 Census (tables: AGEP, SEXP, GCCSA (UR), INCP Total Personal Income) Small and Medium Businesses: Counts of Australian Businesses, including Entries and Exits, Jun 2012 to Jun 2016 TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 4

5 Residential consumers - phone and internet issues Summary RESIDENTIAL CONSUMERS - PHONE AND INTERNET ISSUES One in two Australians had phone and internet issues in the past year. 21% of residential consumers had more than one phone or internet issue over the last year. More than half of Australians who reported an issue considered their phone or internet service problem as serious or very serious. Phone or internet issues experienced in the last 12 months The severity of issues experienced Multiple issues 21% One issue 26% Very serious 19% Serious 34% Slightly serious 29% No issue 53% Not very serious 17% How long it takes for residential consumers to resolve issues with their phone or internet services % of consumers whose issue is still not resolved 30% 25% 24% 25% 20% 19% 18% 15% 10% 5% Issues happened a week ago 1-4 weeks ago 1-3 months ago Over 4 months ago Time when issue happened TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 5

6 RESIDENTIAL CONSUMERS - PHONE AND INTERNET ISSUES Type of issues experienced most often* Fixed broadband (non-nbn) 17% NBN connection 17% Fixed line telephone (home phone line) 12% Postpaid mobile 8% Prepaid mobile 7% Pay TV (e.g. Foxtel) 7% Hardware 7% Mobile broadband 5% Media subscription (Apple Music / EPL / NRL / AFL etc.) Smart home device 3% 3% How residential consumers addressed their phone or internet issue* Contacted provider directly 61% Complained to family / friend or on social media 21% Contacted a complaint service, the Telecommunications Industry Ombudsman or took legal action 16% Switched provider or stopped paying Researched their rights, but took no formal action 7% 9% Took no action 15% Small businesses are more likely than consumers to contact their phone or internet service provider directly (79%). Culturally and linguistically diverse communities are less likely to complain to a family member or friend, or complain on social media (11%). Small businesses are less likely to switch provider or stop paying (4%), or take no action (9%) than residential consumers. *Respondents could select more than one answer. TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 6

7 RESIDENTIAL CONSUMERS - PHONE AND INTERNET ISSUES Most important quality when contacting an organisation to resolve a phone or internet issue* Trustworthy 8.51 Competence in dealing with my problem 8.43 Free service 8.42 Staff listen to my problems 8.38 Responsive 8.36 Useful 8.27 Quick at fixing the problem 8.27 Experts on phone and internet issues 8.26 Simple process 8.22 Staff have my best interests at heart 8.22 *Respondents ranked statements according to importance TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 7

8 SMALL BUSINESS - PHONE AND INTERNET ISSUES Small business - phone and internet issues Summary 59% of small businesses had phone or internet issues in the past year. 24% of small businesses had more than one phone or internet issue in the past year. 56% of small businesses who reported an issue considered their phone or internet service problem as serious or very serious. Phone or internet issues experienced in the last 12 months The severity of issues experienced Multiple issues 24% One issue 35% Very serious 21% Serious 35% Slightly serious 31% No issue 41% Not very serious 13% How long it takes for small businesses to resolve issues with their phone or internet services % of consumers whose issue is still not resolved 50% 44% 40% 35% 30% 20% 21% 20% 10% Issues happened a week ago 1-4 weeks ago 1-3 months ago Over 4 months ago Time when issue happened TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 8

9 SMALL BUSINESS - PHONE AND INTERNET ISSUE Type of issues experienced most often* Fixed broadband (non-nbn) 25% NBN connection 17% Fixed line telephone (home phone line) 15% Hardware 11% Postpaid mobile 10% Pay TV (e.g. Foxtel) 6% Mobile broadband 6% Prepaid mobile Media Subscription (Apple Music / EPL / NRL / AFL etc.) 2% 3% Smart home device 1% How small businesses addressed their phone or internet issue* Contacted Provider directly 79% Complained to family / friend or on social media 19% Contacted a complaint service, the Telecommunications Industry Ombudsman or took legal action 13% Researched about their rights, but took no formal action Switched provider or stopped paying 5% 4% Took no action 9% *Respondents could select more than one answer. TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 9

10 THE TELECOMMUNICATIONS INDUSTRY OMBUDSMAN The Telecommunications Industry Ombudsman The Telecommunications Industry Ombudsman provides a free and independent dispute resolution service for residential consumers and small businesses who have an unresolved complaint about their phone or internet service in Australia. ABOUT The Telecommunications Industry Ombudsman Ltd was established in 1993, and is a company limited by guarantee. The Telecommunications (Consumer Protection and Service Standards) Act 1999 requires telecommunications providers to be members of the Telecommunications Industry Ombudsman and to comply with the decisions of the Ombudsman. TELECOMMUNICATIONS SERVICE PROVIDERS Telecommunications service providers are businesses or individuals who are carriers or provide carriage services. Carriers persons who own a telecommunications network unit to supply carriage services to the public. The carrier must be licensed through the Australian Communications and Media Authority. Carriage service providers (CSP) those who supply standard telephone services, public mobile telecommunications services, or carriage services that enable end-users to access the internet, including carriage service intermediaries who arrange for the supply of such services. SCOPE OF SERVICE Dispute resolution services include: Dealing with individual and systemic complaints. Promoting fair and effective resolution of complaints. Providing information and analysis to community, government and members. THE TELECOMMUNICATIONS INDUSTRY SECTOR The telecommunications industry regulators are the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) Government and the regulators set policy and regulations for the telecommunications sector. Communications Alliance is the peak body for the Australian communications industry The Australian Communications Consumer Action Network (ACCAN) is Australia s peak communications consumer organisation representing individuals, small businesses and not-for-profit groups as consumers of communications products and services TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 10

11 HOW TO MAKE A COMPLAINT How to make a complaint 1 Residential consumers and small businesses should first try to resolve their complaint with their phone or internet provider. 2 3 If the complaint remains unresolved, the residential consumer or small business can contact the Telecommunications Industry Ombudsman by visiting or calling The Telecommunications Industry Ombudsman determines whether it can deal with the complaint. 4 The Telecommunications Industry Ombudsman works with the parties to resolve the complaint. 5 The Ombudsman has the power to decide the resolution of the complaint. TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 11

12 Contact us By Phone * Online By fax By post PO Box 276 Collins St West VIC 8007 If you need an interpreter, please contact us through the Translator and Interpreter Service (TIS): The Telecommunications Industry Ombudsman s Privacy Policy explains how we collect, use and handle your personal information. Ask us for a copy or find it at *Free from landlines. If you are calling from a mobile, you can ask us to call you back.

Complaint Handling Summary

Complaint Handling Summary Introduction This is a summary of our complaint handling process for customers and former customers who are covered by the Telecommunications Consumer Protections Code (TCP Code).