TIO data for FY25 Q3 shows that the overall telco complaint volume remained steady with 15,385 received from January to March 2025, reflecting a slight increase of 0.6 per cent compared with the previous quarter (October-December 2024). Mobile service and internet complaints remain the highest proportion of all complaints at 43.9 per cent and 40.6 per cent respectively, although complaints about mobile have dropped 8.1 per cent when compared with the previous quarter. 

However, consumers contacting the TIO with issues related to financial hardship or repayment arrangements have leapt 71.9 per cent compared with the same period last year, though it has decreased by 8.1 per cent against the previous quarter. Recurring themes within financial hardship complaints include telcos refusing payment plans or extensions, offering unsuitable or unaffordable payment arrangements and service disconnection or suspension. 

Telecommunications Industry Ombudsman Cynthia Gebert commented: “Financial hardship remains a real concern for consumers contacting the TIO and its impacts can be severe. What our data reveals is that telcos still have work to do in terms of providing tailored support and repayment options for people that reflect their individual circumstances – there’s no ‘one-size-fits-all’ solution. Disconnection or suspension of essential telco services should absolutely be a last resort.”

Meanwhile, complaints made by small businesses went up 6.9 per cent quarter on quarter, with 1767 complaints. The report has partly attributed this increase to service issues following the 3G network shutdown, with the most significant increases in complaints related to poor mobile coverage and intermittent service or dropouts.

Poor mobile coverage problems are on the rise for small-business consumers, as well as residential consumers, increasing by 25.3 per cent across the board. 

Gebert commented: “For the second consecutive quarter, we’ve seen complaints from small businesses rise, this time by close to 7 per cent. What we’re hearing from small businesses is how serious the impact of persistent mobile and internet problems is on their ability to provide good customer service and operate efficiently.

“It’s impacting people’s livelihoods and something telcos should be working closely with their small business customers to address,” Gebert concluded.

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The polling, conducted as part of the first tranche of ACCAN’s consumer sentiment research, found that 41 per cent of consumers have limited faith in their telco to act in their best interest due to practices detrimental to their welfare.

In particular, 24 per cent shared that they felt pressured into signing up for a more expensive plan than they wanted while 32 per cent received different coverage than they were led to expect by their telco. Meanwhile, 39 per cent experienced unexpected changes to their contract

“Given the poor treatment many consumers have experienced at the hands of their telco, it is no surprise that trust is in the doldrums,” said ACCAN CEO Carol Bennett. “This research shows yet again that deceptive sales, misleading conduct, and poor customer outcomes are not the exceptions – they’re the shared experience of far too many Australians.”

The preliminary figures support long-standing concerns from consumer advocates, community sector and the ACCC that telco sales practices often exploit consumer vulnerability and confusion, particularly around plan complexity and coverage.

“These issues are not just frustrating – they can be financially and emotionally harmful,” Bennett added. “They also speak to a bigger problem: a lack of accountability in a sector that has outgrown the outdated self-regulatory framework.”

This latest insight builds on ACCAN’s recent campaign efforts to bring about change in the telco sector, including the Fair Call Campaign which calls for stronger, enforceable rules in the telco sector. ACCAN has also welcomed the Enhancing Consumer Safeguards Bill, currently progressing through Parliament, as a long-overdue step toward real consequences for telcos that mislead or mistreat customers.

“Trust in the telco industry is fractured. That trust will not be rebuilt through voluntary codes and industry-written rules. We need binding obligations, meaningful penalties, and a consumer-first approach to regulation,” Bennett said.

ACCAN has urged the Australian Communications and Media Authority (ACMA) and the Federal Government to prioritise consumer interests and a reduction in harm as the key touchstones in their decision-making. 

“Telecommunications is an essential service. Telcos need to be properly regulated and held accountable for the provision of quality accessible services without exploiting or harming consumers,” Bennett concluded.

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The report found that residential consumers and small businesses made 15,297 complaints to the TIO between October and December 2024. While the lack of phone or internet service and intermittent connection remain the primary complaints (a 44.1 per cent and 21.1 per cent increase respectively), a significant number of complaints pertained to the impact of the 3G network shutdown, especially during the 2024 Q4 period.

Small businesses have been found to be impacted greatly by the 3G shutdown during 2024 Q4, which contributed to the 12.8 per cent increase in complaints from small businesses, which broke the record of four consecutive quarters of minimal complaints filed by the small-business sector against telcos. In fact, there were large increases in complaints from SMEs due to no phone or internet service (up 58.9 percent) and poor mobile coverage (up 35.4 per cent). Businesses seeking compensation for financial loss also increased six per cent compared to the previous quarter.
 
Complaints coming back unresolved by providers also surged, up 14.7 per cent from the previous quarter. The main issues reported in unresolved complaints continue to be no or delayed action by provider, service and equipment fees and intermittent service or dropouts.

Telecommunications Industry Ombudsman, Cynthia Gebert commented, “We have seen an increase in consumers reaching out who are frustrated with their telcos. Everyone should have access to the service they’re promised, yet we are seeing an increase in persistent challenges with patchy service and dropouts, and no phone or internet service.”

Geber added, “I appreciate the work telcos do to resolve complaints directly, but with more people and small businesses reaching out to my office for help, there is clearly more that can be done. It is encouraging to see the drop-off in 3G shutdown complaints in December, yet we are continuing to hear from people in rural and regional Victoria who are facing ongoing challenges. I implore the telcos to keep working on solutions that ensure equal access to reliable and phone and internet service for all people in Australia.”

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What is Business VoIP?

Business VoIP (Voice over IP) is the replacement technology for traditional telephone lines. It enables calls to be made and received via the internet and can either be connected to an existing on-premise PBX system or programmed into an IP phone. Since Business VoIP only requires a stable internet connection, the system is also fully portable and scalable and requires no physical telephones in order to be connected.

1. Convert Your Office Phones to a Hosted PBX System

For businesses that are currently using traditional PBX, one way to reduce costs is by switching to a Hosted PBX system. Unlike traditional systems, Hosted PBX has significantly lower line rentals, call costs and requires almost no maintenance. Not only are the costs significantly lower, Hosted PBX comes fully equipped with enterprise-grade features and functions that are designed to streamline your business communications. 

2. Use Business VoIP SIP Trunks on a Mobile SoftPhone App When Travelling Overseas

If you find yourself regularly travelling overseas for work, one way to ensure you avoid bill shock is by investing into a SoftPhone App. SoftPhones are mobile applications that use VoIP technology and enable your phone to act as an extension of your office phone system. This means you can make and receive calls via your mobile, as if you were using your desk phone. It’s a great way to avoid incurring international charges, as any calls you make will be coming from an Australian landline. 

3. Get Business VoIP with all Calls Included

One way to reduce costs is by switching to a Business VoIP plan with all calls included. Especially if your business heavily relies on office phones for client communication, having a plan with all calls inclusive prevents your bill from fluctuating month to month and provides even better value for your money.

Reduce Your Telco Costs by Up to 50% with BusinessCom

Looking to reduce your telco costs without compromising on service quality? We’re here to help! BusinessCom SIP Trunks are provided by a Tier 1 Network Carrier, come with business-grade SLAs, and are the perfect business VoIP solution. From only $22 p/mth per call line, say goodbye to bill shock with our Ultimate Max plan and gain access to enterprise-grade business VoIP with unlimited calls. Simply call 1300 000 300 or CLICK HERE to find out more. 

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