Optus, iiNet, M2 skyrocket in TIO complaint numbers

Consumer complaints to the Telecommunications Ombudsman about Optus were up by over 30 percent, while iiNet's numbers were up by 26 percent, and M2's by almost 75 percent.

The Australian Telecommunications Industry Ombudsman (TIO) has published its Annual Report 2014-15, revealing that while Telstra, Vodafone, TPG, and Virgin have all improved their complaints statistics, competitor telecommunications providers Optus, iiNet, Dodo, Vaya, M2 Commander, and iPrimus have all increased substantially.

According to the report [PDF], Optus saw an increase in total complaints of 31.5 percent, from 14,144 during FY14 to 18,601 in FY15.

This was Optus' first increase in customer complaints in five years, and was attributed mainly to internet service issues -- internet service complaints grew by 52.4 per cent, landline complaints by 35.2 per cent, and mobile complaints by 24.1 per cent.

Optus has been facing increasing competition on both mobile and fixed-line fronts, with M2 Group announcing plans last week to merge with fibre infrastructure company Vocus Communications to form the fourth-largest telco in Australia, and Vodafone Australia following with news that it had signed a AU$1 billion deal with TPG for mobile services.

The Vodafone-TPG deal will see TPG's 320,000 mobile customers moved from Optus' mobile network across to Vodafone.

Optus has denied that the deal would affect it to a large extent, and merely said that it is in discussions with TPG on future plans, and regardless continues to be a primary mobile network provider in the space.

"Optus remains the leading wholesale service provider in the market," an Optus spokesperson said.

"We are currently working with the TPG Group on revised wholesale arrangements, but expect to be a continuing wholesale provider to the TPG Group in the future."

TPG's deal with Vodafone follows its acquisition of rival telco iiNet earlier this year in a deal worth around AU$1.5 billion, wherein TPG paid AU$9.55 per iiNet share, incorporating a AU$8.80 cash or scrip consideration and AU$0.75 cash per share.

The acquisition will see TPG overtake Optus in customer numbers as a fixed-line provider.

iiNet shareholders ultimately voted in favour of the acquisition, with the ACCC and the Federal Court also approving the deal last month.

According to the TIO's annual report, however, iiNet customer complaints were up by almost as much as Optus', increasing by 26 percent from 3,051 complaints in 2013-14 to 3,844 in 2014-15. The TIO attributed the complaints to internet and mobile repair delays, slow speeds, and disputed charges.

All three of M2 Group's telco brands also saw substantial rises in complaints. Complaints about Commander were up a massive 73.6 percent, from 864 in FY14 to 1,500 in FY15; iPrimus was up 18.5 percent, from 1,072 to 1,270; and Dodo was up 17.3 percent, from 3,187 to 3,737.

The woes of M2 were due to disputed bills, poor contract information, disputed service charges, slow speeds, landline repair delays, and internet and mobile repair delays.

Vocus' merge with M2 will form a telco worth AU$3 billion, bringing it closer to Telstra, TPG, and Optus.

Mobile provider Vaya, which resells Optus' 4G mobile services, saw its complaints increase by a whopping 288.4 percent, from 421 to 1,635, due to excess charges, disputed bills, and failed usage notifications. The company did note, however, that its customer base had increased by 174 percent over last two years, which may have contributed to the increase in complaints.

Meanwhile, telco providers Telstra, Vodafone, TPG, and Virgin all saw an improvement in their customer complaint numbers. Complaints about Telstra decreased by 4.3 percent, down to 55,529 for 2014-15, while Vodafone's dropped by 46.2 percent, from 35,876 to 19,311; TPG's by 5.4 percent, from 4,759 to 4,501; and Virgin's by 38.9 percent, from 3,460 down to 2,115.

Vodafone's 4G mobile network currently covers 96 percent of the population, while Optus only claims that its 4G network covers 90 percent, and Telstra lays claim to 94 percent. However, according to a report by OpenSignal last week, which calculates "time coverage", Vodafone covers 77 percent of the population, Telstra 76 percent, and Optus 70 percent.

In regards to speeds, Telstra is the 21st fastest mobile network provider worldwide, at speeds of 23Mbps; Vodafone is in 37th place and Optus is in 43rd place, both with average download speeds of 19Mbps.

The TIO's annual report also revealed a 68.6 percent increase in complaints by consumers about the National Broadband Network (NBN), but an overall drop in total complaints to the TIO.

Australian Communications Consumer Action Network (ACCAN) CEO Teresa Corbin said communication needs to improve between NBN, consumers, and retail service providers (RSPs).

"The number of subscribers on the NBN has grown substantially, but NBN and the retail service providers (RSPs) need to ensure consumers aren't worse off during the switch-over," Corbin said.

"ACCAN is calling on the telcos and RSPs to publish their complaint data so that problem areas can be better identified and consumer complaints can be avoided. This also benefits the industry, as it allows showcasing of low complaint levels by the star performers."

More than 124,000 complaints were made about mobile, landline, and internet services during FY15, a drop of 10.5 percent year on year in the fourth consecutive year of telco-related complaints to the TIO decreasing.

Mobile complaints were down 21.1 percent, to 57,983 -- the lowest number since 2007-08. The TIO attributed this to greater transparency in data usage through alerts to consumers, required under the Telecommunications Consumer Protection (TCP) Code, as well as improvements in coverage due to continuing investment in mobile infrastructure.

"Improved coverage through telco investment in mobile towers, and usage and spending alerts that help consumers control data and phone usage, have contributed to this improvement," Acting Ombudsman Diane Carmody said.

The Communications Alliance welcomed the results of the report, having said it signalled an improvement in network infrastructure and customer service within Australia.

"This is the fourth consecutive year of significant reductions in complaints, and it is fair to say that industry is on a long-term path to greater customer satisfaction. The TIO results are backed by our quarterly national polling which also shows steady improvements in customer satisfaction since the commencement of the polling two and a half years ago," Communications Alliance director of Program Management Christiane Gillespie-Jones said.

"This improvement stems from various factors, including huge investments into improved networks, a strong Telecommunications Consumer Protections Code, and most importantly, an industry-wide commitment to deliver an outstanding customer experience to customers."


http://www.zdnet.com/article/optus-iinet-m2-skyrocket-in-tio-complaint-numbers/

Optus blames Apple iPhone 6 for rising phone, internet complaints

Complaints lodged by phone and internet customers with the Telecommunications Industry Ombudsman have hit an eight-year low but Singtel-Optus has defied the trend with unhappy users on the rise thanks to Apple's iPhone 6.

The TIO received 3699 customer complaints about Optus during the three months ending December 2014 – up 11.7 per cent compared with the same period a year earlier. By comparison, Telstra's complaints rose by 0.7 per cent while Vodafone Hutchison Australia's fell by 44.7 per cent during the same period.

A spokeswoman for Optus blamed problems related to its hugely popular launch of the Apple iPhone 6 and iPhone 6 Plus for the rise in complaints.

"This was mainly due to supply issues, operational challenges and contract disputes related to the launch of iPhone 6 and iPhone 6 Plus," she said. "We're disappointed in the results for this quarter and are working hard to ensure our customers have a positive experience with Optus."

She also said Optus had fewer new complaints thanTelstra and Vodafone Australia.

But the industry as a whole performed well.

In 2011, Australia's phone and internet services were dire enough to spawn websites dedicated to angry customers and slick YouTube comedy videos roasting poor customer service.
Complaints drop with new plans

By comparison, 2015 has become a year to celebrate as new plans that help reduce bill shock have led to a cut in complaints.

"The TIO received 29,560 new complaints in October to December 2014, the lowest since July to September 2007 when 26,632 new complaints were recorded," it said in a statement.

"The TIO also recorded the lowest number of new complaints about mobile coverage problems since April to June 2010."

The results come amid major pushes by all Australia's top telcos to improve customer service and prevent users from leaving their networks as industry-wide subscriber growth slows down. This is partly because most Australians are already connected to mobile and fixed-line phone and broadband services.

It is generally cheaper for a telco to spend more money keeping a customer happy than it is to get a new client.

The importance of boosting customer satisfaction was highlighted by TPG Telecom's recent $1.4 billion purchase of Perth-based rival iiNet, which has long enjoyed a reputation as one of Australia's best providers of customer service.

Of Australia's three biggest carriers, Vodafone Hutchison Australia saw the biggest reduction of complaints to 5355 in the last three months of 2014 – a 44.7 per cent fall compared with the year before. But it still gets more complaints per customer compared with Telstra and Optus.

The number of complaints from users of the national broadband network also rose to reach 1414.

"Connections continued to be the most common issue about NBN-related new complaints," the TIO said. "While complaints identified as NBN-related arise from services provided over the NBN, this may not mean it has been directly caused by the NBN or NBN Co."

TIO Ombudsman Simon Cohen said new products launched by mobile service providers to prevent bill shock were helping slash the number of complaints reaching his organisation, as were his organisation's campaigns.

The Optus spokeswoman later clarified that operational challenges were related to Optus' delivery of phones and logistical processes and that contract disputes related to its customers.

http://www.smh.com.au/business/optus-blames-apple-iphone-6-for-rising-phone-internet-complaints-20150317-1m1ctc.html

Optus never ceases to amaze

Optus is probably not the world's worst phone company.  Some British company would probably beat them for that title.  But they would be in the running.

Would you like to take over somebody else's phone number?  If they are with Optus it is a cinch.  You just sign up with some other company  -- say Dodo -- and tell them that you want the number.  Dodo will then simply ask for it and Optus will give it to them no questions asked.  You would imagine that Optus would ask their customer if he wanted to lose his number or not  -- but no siree!

Sound crazy?  It is.  But Optus have just done exactly that to me.  They cancelled my number and gave it to Dodo -- even though my account was paid in advance and I have had it for ten years without giving them any problems with late payments.

I of course protested and it was then that I was told that they perform no checks if another phone company asks for a particular number.  It's obviously a cost-saving measure for them.

After I wrote to Paul O'Sullivan, their CEO, about the matter, they got my number back from Dodo but tell me that they are so hard worked that it will be another week before my account will actually be restored.  Most people who ring me have my mobile number but otherwise it would be a read teeth-grinder to lose my landline for 3 weeks.  It could happen to you.  Change to another provider.

TO:
Paul O'Sullivan
CEO
Optus
1 Lyonpark Rd
Macquarie Park
NSW 2113

PLEASE FIX OPTUS BUNGLE URGENTLY

Dear Sir,
I am writing to you because my attempt to get YOUR bungle fixed has already cost me significant money.  I spent so much time taking to your helpline that my mobile phone credit ran out.

The bungle is that landline 33914*** was disconnected and transferred elsewhere by you without authorization.  I want it back.  The account is jointly operated by Judith Burgess and myself.

I enclose the cheque you sent me.  Please cancel it and credit to my restored account.

Gabba
Qld 4102
3 December, 2012

TO:
Paul O'Sullivan
CEO
OPTUS

Sully,

I have finally and totally had it with you shitheads.  Because of poor connections, I moved my mobile internet connection from you to Telstra and I am now not renewing my prepaid Optus mobile phone A/c either.

My prepaid mobile A/c is shortly due for a topup but when I logged onto your site I clicked all around it and could find NOWHERE that told me how long a given recharge lasts.  Why can't expiry information be given beside each payment option?

So I will let the A/c expire.  You are not interested in business and you have been an unremitting nuisance to me.

Gabba 4102
26 September, 2012

To:
Kahla Fowler
Customer Relations
Optus

Dear Madam,

As you know from past correspondence, I have had great difficulty getting useful service out of my Optus wireless dongle.  I use it to access the internet on a prepaid basis. A/c 93229678000112.  During the month of May, however, I got some use out of it from time to time so I was rather of the view that I had finally cracked the system. 

When I logged on this evening (26th) however, I was disabused of that notion.  I logged on around 7pm and had great difficulty getting any connection at all.  After repeated tries I did however get a connection.  The connection did not allow me to load anything, however.  Even Optuszoo would not come up!  So that looked like an overload situation.  I figured out however that maybe 7pm was a peak time and I might have better luck later.

I did.  At 9pm I got connected straight away and even managed to log onto a page on the net.  That was the sum of my success, however.  I could not get onto any other pages.  Overload was again the obvious diagnosis.

You obviously cannot provide the service you advertise so I think you should buy back my dongle.

In the absence of a constructive reply I will raise the matter with the TIO. I might let SingTel know too.  You really are a disgrace.

Gabba, Brisbane
Qld 4102
28 March, 2012

TO:
Paul O'Sullivan
CEO
Optus

Dear Sir

Re: 0422 813761 Prepaid internet access

I have an Optus wireless dongle that I use mostly for when my Telstra cable connection is down.  I live half way up a hill just across the water from the CBD so it is reasonably satisfactory in that application.

When I bought it, however,  I also had in mind that I would be able to use it on the rare occasions that I am away from home for any length of time.

I was at the Wesley hospital today for a procedure that involved a lot of waiting so I loaded up $15 worth of prepaid credit on my account and  took my netbook along to do some net surfing while I was waiting.  It was hopeless.  I did manage to access one of my usual sites but as soon as I clicked on a link, the connection dropped out.  I basically had no reception at a site only 5 minutes drive from the Brisbane CBD.

I am astounded that the reach of your service is so limited.  I paid $15 for nothing.   Would YOU like to pay $15 for nothing?

May I suggest that you extend to 6 months the time I have to use the $15?   I am much minded to bring your poor service to the attention of the TIO but I await your response first

Gabba
Qld 4102
21 January, 2012

TO:
Paul O'Sullivan
Chief Executive
Optus

Dear Mr O'Sullivan,

You seem to be very poorly served by your staff.  A letter of enquiry that I wrote to Optus went unanswered for over a month so it took an appeal to the TIO to squeeze out an answer.  And when I got an answer (from your customer relations man Daniel Campbell) the information he gave me was wrong.

I was enquiring about how I get more time to use money I have paid towards prepaid access to your wireless internet access.  When Mr Campbell finally got off his behind he rang me to say that if I topped up $50 at a time I would get more than 30 days to use the money.  I asked him to put that in writing, which he did.  All very well if it were true.  But it is not.  Upon logging on I found that I would have to pay $80 to get such access.  How come your senior executives don't know the basics?

My use of your service is only sporadic so the time given to me to use the money is important.  I note that for mobile phone service I have to do only a $30 topup to get six months to use the money.  Why is it not the same for computer topups?

If $50 had in fact given me 6 months to use the money,  I would certainly have gone for that option.  Instead I did only a $15 and 15 day topup as my immediate requirement for your service will be  over the next few days only.   So, far from getting $50 or $80 out of me, you got only $15!

I also note that users are expected to subscribe to services called "RevUp" and "OWB".  What does that mean?  Your site gives no clue.

I hope you have the courtesy to give me a prompt and thoughtful reply to this letter.  If you do not, I will be writing to Singtel, not the TIO this time. I have done so before when confronted by past instances of Optus obtuseness.

Gabba

Qld 4102

8 December, 2011

TO:

CEO

Optus

Dear Sir,

I am completely fed up with your facility for recharging mobile phones.

My no. is 0423 248795

I carefully navigated my way online  to your "186 day" recharge options and topped up my account with $30.  Your receipt  0E173F70E6244D0D993D56E7D8EDA2E6 refers.

Shortly thereafter I rang 555 to check my balance

I found that the $30 had been recorded but I was given only ONE WEEK more to use the funds.  Please correct your records.

In the absence of a prompt and satisfactory reply from you I will take the matter up with the TIO.  I am not going to cancel my service with you as I would rather keep pushing you towards decency in your dealings with your customers.  I have sure had a gutful of you by now -- going back to the year 2000 -- but I am not going to let you get away with it.

Telcos resisting customer service reforms

Note the arrogance highlighted in red

PHONE companies are resisting major restructuring saying changes will be too costly to implement and that a new voluntary code will be more effective in addressing consumer concerns.

In submissions to Australian Communications and Media Authority's Reconnecting the Customer inquiry - published yesterday - the peak industry body, Communications Alliance, said it supported the ACMA draft report but that the industry's revised Telecommunications Consumer Protections (TCP) Code would address the major issues raised in the report.

Key points the ACMA's draft report said must be addressed were: clarity in pricing, advertising and comparison between providers; improved complaints management; tools for users to monitor phone usage; and amendments to the Telecommunications Industry Ombudsman Scheme.

The Communications Alliance submission said many of the concerns raised by the ACMA in its Draft Report had been addressed by the revised draft TCP Code.

The draft TCP Code has yet to be released, and no spokesperson from the Communications Alliance was available to comment.

Providing more information about telephone pricing and plans would only confuse consumers, the submission said.

Teresa Corbin, the chief executive of the Australian Communications Consumer Action Network, said the industry was in denial about the threat of further regulation. "I think they're not facing up to the reality that they have to make some serious changes, and I think they're hopeful that by testing the waters they'll find that they can get away with just tinkering but they haven't really woken up to the fact that they need to make some radical changes. "

Clare O'Reilly, the project director of the ACMA inquiry, said there was a resistance to change. "Industry's view is that to try to explain pricing in a more simpler way is just not feasible.

SOURCE

Letter to Paul O'Sullivan, CEO, Optus

I am irate at a bit of systematic skullduggery you practice when your prepaid mobile phone users go online to get a recharge -- and I am thinking of drawing the attention of both ACMA and the TIO to it.

I believe in dialogue, however, so I will predicate my future action in the matter on your reply or non-reply to this letter.

I have prepaid mobile 0423 248 *** and when I last logged on to the net at optus.com.au/recharge the options presented allowed me only 30 days to use the recharge funds. I have had battles (which I won) with Optus since the year 2000 however so I was not going to lie down and take that. I wrote two letters querying the matter to your "help" staff and eventually someone rang me to let me in on the deep dank secret of how to get 6 months to use my recharge funds.

There is NOTHING on the recharge page to tell me so but if I change the default recharge from $20 to $30 an entirely new screen pops up and that screen allows a 6 month recharge. But even that screen does not SAY it provides a 6 month recharge. You just have to be "in the know" to realize what is happening.

It's no mystery what you are trying to do. You are trying to get less frequent users to waste their money by giving them insufficiant time to use their funds. In good Australian parlance, it is a RORT.

Unless you change BOTH screens to let customers know what is happening, look forward to a call from ACMA. And I think I might write to Singtel about you too.

You have just copped a $5 million fine for misleading and deceptive advertising. Do you want another one?

Optus fined for crooked advertising

BACK in July 2009, Australian Competition & Consumer Commission chairman Graeme Samuel met with the chief executives of Australia's three largest telecommunications companies.

Telstra's David Thodey, Optus boss Paul O'Sullivan and Vodafone Hutchison Australia chief Nigel Dews had met to discuss the soaring number of complaints by consumers over confusing mobile and broadband plans, reported The Australian.

"The message I gave then was that the industry was in a race to the bottom in terms of advertising practices," Mr Samuel said. "That race to the bottom had to stop, advertising standards had to increase . . . (the ACCC) was getting too many complaints."

Mr Samuel said none of the parties was keen for the regulator to litigate on the matter and recalls the group agreeing to enter into a court-enforceable undertaking to lift their advertising standards.

One of the key issues was the use of so-called headline advertising in telecoms, which could go close to misleading behaviour. This was the use of an attention-grabbing major headline, diluted by a fine-print disclaimer.

That issue of headline advertising caught out Optus yesterday, when the Federal Court imposed a hefty $5.26 million fine for a series of broadband advertising campaigns that ran over a period of five months last year.

That Optus could receive the highest civil penalty for a consumer protection breach despite signing that undertaking in September 2009 was the real issue, Mr Samuel said.

Federal Court judge Nye Perram agreed, saying that fact had been considered when assessing the size of the penalty he was willing to impose. "What is involved is hypocrisy: the saying of one thing; the doing of another," Justice Perram wrote in his judgement.

"This has cost Optus lots of money and lots in reputation," Mr Samuel said.

SOURCE

Gabba
Qld 4102
27 June 2011

Malcolm Tait
Team Leader
Customer support
Optus

Dear Mal

If you are the team leader, it must be a sorry team -- say 6th division?

I have your letter of 22nd but it gives no evidence of your having read the letter you are replying to.

I REPEAT: optus.com.au/recharge gives details of options that expire no later than 30 days.  That's 30,  30,  30.  How often do I have to repeat it?

SO AGAIN:  where do I find a link that gives me 6 months to use the recharge?

Surely I don't have to refer the matter to the TIO simply because you are too much of a numbskull to read a letter!

Yours etc

Letter to: Prepaid mobiles, Optus

Dear Sir,

I recently attempted to recharge my Optus prepaid mobile 0423 248 ***

To my surprise, on checking online I found that your offers there have a maximum life of 30 days. When I first signed up, 6 month and 12 month expiry plans were available

By dint of about 10 minutes of button pushing, however, I was able to get a 6 month expiry recharge per phone. I started out calling 555 and then got referred to 444. Option 3 seemed the most relevant choice offered by 444 but when I pushed that I got told to piss off. I eventually tried option 2 and that worked. Amazing.

Please advise the internet link that will enable me to get an online 6 month recharge next time. I am a bit deaf so phone transactions are slow for both me and your operators.

Yours etc

Dr John Ray