Telcos told to lift game for customers in bill strife

Hundreds of thousands of Australians in financial stress are at risk of being cut off from phone and internet services and providers are being called out for not offering enough help.

As the cost-of-living crisis stretches household budgets, a report by the communications watchdog found more than 2.4 million people had experienced difficulty paying, or were concerned by, their telco bills in the past 12 months.  

The Australian Communications and Media Authority (ACMA) report found only 57 per cent of people surveyed knew they could contact their telco provider if they needed help and young people were less likely to know they could ask for assistance.

For people who did report financial difficulties, telcos were rare to initiate contact, especially human contact, and did not provide as many assistance options as water and electricity providers.

ACMA chair Nerida O'Loughlin said the industry needed to lift its game.

"Telecommunications is an essential service. Being connected and having access to a reliable and affordable phone and internet service has become crucial for many people to work and connect to education, health and government services," she said.

"With the current cost of living pressures, telcos need to be even more attuned to the needs of customers who may be doing it hard."

The report found more than 406,000 customers had their services disconnected last year and only a small number had received financial support.

It also found direct debit payments, used to collect monthly bills, could become problematic in financially difficult times, adding to consumer stress and incurring extra fees.

Consumer Action Law Centre chief executive Stephanie Tonkin described the report as "truly scathing" and said existing self-regulation codes for the industry were not working.

"We need rules in the telco industry that have consequences when breached, and I call on (the minister) to introduce direct regulations to force telcos to identify and deal with customer hardship seriously," she said.

Communications Minister Michelle Rowland said she was concerned by the report findings and the federal government was considering the consumer safeguards framework to ensure it was fit for purpose. 

That included securing adequate protections to ensure telcos provide appropriate financial hardship assistance, credit management and billing processes, and stamping out mis-selling and other practices that could result in financial hardship.

"The telco industry must do better. Telecommunications should enrich peoples' lives, not cause inconvenience, frustration or detriment," Ms Rowland said.