Telecommunications Industry Ombudsman connect.resolve campaign launch

Friday, 21 November 2008

At the outset, I would like to genuinely congratulate the TIO for the initiative it has shown in developing the connect.resolve campaign.

This campaign is a necessary step towards addressing a worrying trend in the telecommunications sector which has been building for some considerable time.

Confidence is a basic requirement for people to embrace new technologies, new services and new applications.

Today in the telecommunications industry, evidence suggests that consumers do not have confidence in their service providers.

The performance of telecommunications companies has not been good enough.

Indeed, as many of you will already be aware, the TIO recently announced a record, near 50 per cent increase in complaints in the last financial year.

The growth in complaints over the past 12 months, has been so large, that it cannot be explained by market growth and increased industry activity.

Furthermore, the growth of complaints across a range of categories is a concern.

Of particular concern is a substantial surge in complaints about 'poor customer service' and 'complaint handling' processes.

This is part of the reason that we are here today.

The statistics show there were more than 52,000 complaints about poor customer service in 2007-08 - up from about 27,000 in the previous year.

For the first time, complaints about poor 'customer service' overtook complaints about 'billing' as the leading complaint category.

These statistics are a serious concern for the Government and for consumers.

They should also be a serious concern for the entire telecommunications sector.

It goes without saying that consumers are the lifeblood of telecommunications providers.

Without consumers - they have no business.

Yet, the growing volume of complaints suggests that Australians have become increasingly dissatisfied with the level of customer service they are receiving.

This needs to change.

Consumers have the right to expect telecommunications providers to deliver the services they promise.

They also have the right to expect that their complaints or queries will be properly recognised.

They have the right to expect an efficient and courteous response to their concerns.

The latest TIO statistics show consumer complaints are not being adequately addressed in many instances.

However, they also demonstrate that this trend is easily reversible.

For example, more than 90 per cent of complaints last year, were resolved when complainants were referred back to their service provider, after contacting the TIO.

This suggests that, in many cases, industry members are unwilling or unable to resolve customer service issues unless they are compelled to do so.

This is one reason that we are here today.

The connect.resolve campaign being launched by the TIO aims to throw the public spotlight onto these problems.

It is an opportunity for industry to take stock and, as a matter of priority, provide a better experience for customers.

The TIO wants to work together with industry to address consumer concerns.

Through this campaign, TIO will closely examine complaints trends, provide monthly feedback analysis to its largest members and publish the outcomes.

I am hopeful this campaign will highlight some of the better performers, leading the industry in customer service.

These companies should be applauded.

However, I anticipate that the analysis will also provide substantial motivation for poorer performers to lift their game.

The TIO has made it clear, that it wants to work with service providers, to develop solutions and produce guidelines for improving customer service and complaint handling.

I wholeheartedly welcome this campaign.

These efforts will encourage industry to take greater responsibility for its complaints performance.

Industry needs to work collaboratively to improve the way it deals with consumers.

Collaboration is required to create an environment where customers have confidence in the services they choose to purchase.

It can improve consumer confidence in emerging services.

It can strengthen the self-regulatory framework.

Importantly, collaboration by industry can reduce pressure on government to impose more prescriptive regulatory requirements.

If self-regulation is to remain viable for the telecommunications industry, it is incumbent on industry to ensure:

• its performance improves;
• it listens to consumers; and
• it responds to concerns in a serious way.

The Government is keen to encourage confidence across the digital sector.

Improving services in the telco industry is a good starting point.

Government has a role to play, however, the relationship between a service provider and its customer is a vital factor in developing trust and confidence in the digital environment.

The Rudd Government is very keen to ensure consumers are better represented and get a better deal in the telecommunications industry.

Throughout this year, we have supported the establishment of a new national peak body, to provide telecommunications consumers with a stronger unified voice.

The Australian Communications Consumer Action Network (ACCAN) has already established its founding board and constitution.

This is an important development for consumers, who through this new group will have a more powerful voice.

They will be better represented in the establishment of future frameworks for digital service delivery.

I call on industry to work with ACCAN to further address consumer complaints when the group launches in 2009.

I will also be closely watching the progress of the TIO's connect.resolve campaign as it evolves over the coming months.

In the short-term, I will be looking to industry to respond positively to the TIO's campaign, in the interests of all consumers of telecommunications services.

As I have said previously, telecommunications companies need to lift their game.

If that does not happen - let me make clear - that the Government will look seriously at steps we can take to ensure that the industry improves its responsiveness to consumers.

This campaign provides an opportunity for the industry to be proactive in responding to consumer issues.

It is time for industry to address this problem as a matter of priority.

The challenge has been set.

Thank you.