Australian phone contracts still industry 'blackspot'

Australian consumers continue to struggle with the small print when signing up for mobile phone services.

Telecommunications Industry Ombudsman (TIO) John Pinnock said there had been a number of complaints about alleged misleading conduct on the part of dealers and agents, particularly at the point of sale.

Mobile phone complaints data analysed for the TIO by the Australian Mobile Telecommunications Association uncovered some interesting trends.

The research revealed that of 2445 complaints received between July 1 and December 24 last year 1108 were claims that the customer had been given incorrect or misleading information at the point of sale.

Pinnock uses examples such as advice about the nature of calls or service available under a particular plan; what discounts were available; and what features were free.

Another 106 of the complaints related to telemarketing, where consumers were told they had won a free phone, only later to find out that they would also need to enter a contract.

In addition, 91 complaints were made about consumers not receiving terms and conditions about the contract, and there were also 94 complaints relating to coverage.

-We have been belabouring the industry for years about the issues involved in the selling of contracts," Pinnock said. -[It's a] bit of a black spot for the industry."

Pinnock said that mobile phone contracts, which included both the phone and the service in the same agreement, have for many years been the preferred option to encourage widespread takeup. While he agrees it had produced a number of benefits, Pinnock said there had also been problems.

He believes that in some instances customers may not be aware that they're dealing with a dealer or agent, instead of an employee of the telco. -These sorts of problems have been perennial â€" they've been around almost as long as mobile phone contracts themselves," Pinnock said.

Although Pinnock said that there will probably come a time when mobile phone customers are treated in much the same way as fixed-line customers, we aren't there yet. -I'm not convinced it's going to happen quickly," he said.

Advertisement

Talkback 0 comments

Latest Videos

Sponsored content

Power Centre - Content from our premier sponsors

Blogs

  • David Braue Can not-so-smart meters help the NBN?
    It was interesting to witness Conroy's recent enthusiasm to spruik the NBN's role in supporting the Smart Grid, Smart City initiative. What a pity that Conroy hadn't yet seen the damning report from the Victorian auditor-general about that state's smart-meter roll-out.
  • Array Can the Telco Reform Act be win-win?
    In the second of our two programs looking at the Senate Inquiry into the Telecommunications Legislation Amendment Bill, we hear from shareholders, bureaucrats and industry groups.
  • Array Has New Zealand's smiling assassin delivered?
    One year into its tenure, how has the new New Zealand Government performed on issues of technology and telecommunications?
  • More blogs »

Tags

Back to top

Featured