The Albanese Government has taken a proactive step to improve safeguards for Australian telco customers experiencing financial hardship.
Communications Minister Michelle Rowland MP has directed the Australian Communications and Media Authority (ACMA) to establish an enforceable industry standard. This ensures appropriate support is provided to telecommunications customers in need. By elevating financial hardship obligations to direct and enforceable regulation, the government aims to deliver better consumer outcomes.
Addressing the disparity and raising awareness
In May 2023, the ACMA released a comprehensive report titled “Financial Hardship in the telco sector: Keeping the customer connected.” Based on data sourced from telecommunications providers and independent surveys, this report sheds light on the challenges consumers face and the existing gaps in support. It revealed that while many Australians experienced payment difficulties in the past year, only a small proportion received support.
Surprisingly, industry data showed that as of June 2022, only 4,388 customers were enrolled in financial hardship programs. This is out of all residential customers which represents a mere 0.03% of the total. Furthermore, the report highlighted the need for more awareness among customers about the assistance available to them. It found that only 57% of Australian adults and 64% of those who experienced financial hardship in the past 12 months knew they could contact their telco provider for help.
These findings align with those from other organisations, including the Telecommunications Industry Ombudsman (TIO), the Australian Competition & Consumer Commission (ACCC), and consumer groups like the Australian Communications Consumer Action Network (ACCAN) and the Consumer Action Law Centre.
Collaborative efforts and future steps
The Albanese Government encourages industry actors and consumer stakeholders to collaborate constructively with the ACMA in creating the financial hardship standard to improve consumer outcomes.
Furthermore, the ACMA has published a position paper stating its expectations for the industry to address numerous issues. This is part of the ongoing review of the Telecommunications Consumer Protections (TCP) Code, which is expected to be completed in 2024.
The government remains committed to making concrete efforts to enhance consumer outcomes. This involves investigating the possibilities of revising sanctions and enforcing the code.
Finally, the Albanese Government’s action underscores its commitment to ensure that Australians facing financial difficulties can continue to access important telecom services.