TIO Connect.Resolve Campaign Report Launch

Good afternoon everyone.

I would like to congratulate the TIO for the energy and commitment it has shown to develop the Connect.Resolve campaign.

The campaign raises the issue of consumer complaints to ensure they become a key priority for industry.

This is an important step in the path towards improved customer service.

This campaign has been a welcome and necessary step to avert a worrying trend in the telecommunications sector.

This trend has been building for some considerable time.

The increase in complaint statistics over the past 18 to 24 months suggests that consumers do not have confidence in their service providers.

At a minimum, it suggests the performance of telecom companies has not met consumer expectations.

My views on the recent rise in customer service-related complaints are well known.

I remain concerned that the number of consumer complaints being registered is simply too high and industry is not doing enough.

Earlier this year I wrote to the Communications Alliance, the TIO, ACMA and other key industry members, setting out my expectations.

I made it clear that industry should take immediate action to reduce the volume of complaints received by the TIO.

I have actively supported the TIO's Connect.Resolve campaign and received monthly reports throughout its duration.

I have taken a keen interest in seeing how industry responds.

The TIO Connect.Resolve campaign should be acknowledged for its success raising general awareness of customer service issues and ensuring they remain a high priority within industry.

The TIO has strong record of working with industry to achieve quality outcomes for consumers.

This is illustrated by the majority of the TIO's ‘top ten' industry members providing input into this report, and providing regular updates about programs they have underway to help reduce complaints.

The key findings in the Connect.Resolve report show a stabilisation in complaint statistics for the last two to three months.

However, they also show continued concern about ‘Level 0' complaints – where the issue is relatively small and should be easily resolved by the telco prior to TIO investigation.

Complaint data for June 2009 shows that customer service and complaint-handling issues made up 35.4 per cent of all issues recorded by the TIO.

The volume of complaints is simply too high and the challenge remains for industry to respond.

I believe relatively minimal effort from industry could greatly influence complaint numbers.

For example, when it comes to ‘Level 0' complaints I suggest that improving customer service at the point when a complaint is first raised, would greatly impact on complaint statistics.

These are the simplest and smallest issues - frustrations like:

• not fixing billing errors,
• not providing information when asked,
• inconsistencies within an organisation, and
• failure to cancel accounts when asked.

These frustrations could be easily resolved by telcos to ensure they are not escalated to the TIO.

However, I am aware that it will take six to twelve months before the impacts of the Connect.Resolve campaign will be fully reflected in complaint statistics

I am also encouraged to see the report notes an apparent stabilisation in complaint numbers in recent times.

This is a long-term issue for industry, but positive signs are certainly welcome.

There is little doubt that complaint statistics have clearly been affected in recent times by:

• the introduction of new technologies;
• the tough financial environment as people scrutinise bills more closely; and
• other factors such as upgrades to new customer service systems.

However, I think it is clear that the growth in complaints over the last 18-24 months has been so large that it cannot be explained by these influences alone.

It's worth remembering that the TIO was established as an ‘escalated' complaints handling body.

Industry always has the first and best opportunity to address consumer concerns at an early stage.

Further, industry-driven responses are essential to addressing customer service issues in an effective and sustainable way.

In this context, I welcome the decision by the industry body, Communications Alliance, to convene a ‘customer service summit' this week.

I will be speaking at the summit on Wednesday.

Among other things, the summit will draw on experiences from other industries, and highlight new and emerging resources for to industry to improve complaint-handling procedure and practice.

I look forward to seeing the outcomes of the summit and a continued industry effort to address the customer service issue.

Recognising the value and importance of protecting consumer interests, in any business, is paramount to success.

As demonstrated in our investment in ACCAN, the new peak body for telecommunications consumers, the Rudd Government has made a strong commitment to improve outcomes for telco customers.

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

Further, effective consumer representation plays an important role in driving market-based solutions.

The Government is very supportive of the actions being taken by the TIO to highlight these issues and encourage industry to take them seriously.

There is little doubt the telecommunications industry shares our view and wants to see consumers getting the service and conditions they expect.

We will continue to work with industry to address this issue, but as I have previously warned, regulatory options will be considered if consumer interests are not adequately protected.

Once again, I congratulate the TIO on conducting the Connect.Resolve campaign and industry's response to date.

I share in the interests of Australians in looking forward to further improvements from the telecommunications industry.

Thank you.