Telco complaints rise 9% on Vodafone network problems

Complaints to the telecommunications ombudsman increased by 9% during the second half of 2010, with mobiles the subject of more than 20% of complaints received according to official figures.

The figures show that most complaints were about Vodafone and its network issues, and that excluding all new complaints received about the troubled telco new complaints grew by just under 2%.

Ombudsman Simon Cohen said in the report that the trend was very disappointing and December 2010 was the busiest period of the half – just as Vodafone experienced many of its troubles.

“Customer frustration with Vodafone is understandable – it is one thing to have a service issue but it is especially concerning when consumers cannot contact someone to have their problems sorted out,” Cohen said.

The report shows that in the first six months of the 2010-11financial year the TIO recorded 87,264 new complaints, up 6,957 from the first half of the 2010 calendar year.

Of those complaints 5,370 concerned Vodafone’s technical issues and customer service – up by 96% from the first half of the year.

Vodafone customers sparked an outcry late last year when they found mobile broadband download speeds were grinding to a halt and a class action was sparked out of the protest.

Early this week the company admitted it had failed to increase network capacity to serve new users and said it would spend $500 million to upgrade base stations to deal with its fast-growing user base.

“I am aware of recent additional staffing to improve Vodafone customer service and we will carefully monitor whether this is reducing the need for consumers to come to the TIO,” Cohen said.

Vodafone defended itself in a statement this morning, saying it had added 300 new customer service reps and it would be investing in new security measures to make sure data was kept private.

“We want to make sure we provide a service that our customers are happy with and we have large teams of people and significant resources dedicated to improving our network and service,” company chief Nigel Dews said.

Cohen says the rise in complaints was not limited to Vodafone and the 1,587 new complaints indicate that telcos aren’t doing enough to help customers with services, especially as more complicated devices like smartphones need more support.

The TIO found 19,000 issues related to the failure of telco providers to follow through with promises made when taking calls, with the number of complaints received about that up by 23%.

The report points out that TIO investigations have decreased by 10%, suggesting that more complaints are being resolved without need for review.

But there are other concerns. More than 17,000 complaints claimed consumers who contacted the TIO said they were not referred by their telco.

Under the telco consumer protections code if a consumer expresses dissatisfaction the company is obliged to provide avenues for them to pursue,.

“While it is fortunate that dissatisfied consumers are finding the TIO telephone and internet companies can do more to ensure all their customers are aware that there is an independent ombudsman who can receive their complaints and work with both sides for a fair and reasonable result,” Cohen says.
“In the coming months the TIO will monitor this referral issue closely.”

The TIO also points out that due to the floods and natural disasters in Queensland, “rectification of faults may be protracted”.

“Some telephone and internet companies, including Telstra and Optus, have advised of mass service disruptions resulting in increased times to respond to and rectify faults,” Cohen says.
“This includes delays in areas not directly affected by the floods as technicians are assigned to cities and towns with more urgent needs.”

The TIO said when consumers contact it about fault rectification complaints they are told repairs may not be performed quickly.

The main issue seems to be that complaint handling and customer service complaints are more prominent than billing complaints.

“A theme in the cases were complaints that telephone and internet companies don’t act on their promises to consumers,” Cohen says.

“This is demonstrated in case studies we report on where issues about bills and faults are amplified by poor service that can leave customers cold.”

Telco experts believe the number of complaints will continue to grow as users depend more on telco-based devices such as smartphones.

The report comes as the Australian Communications and Media Authority is preparing to release its inquiry report on customer service.

Chairman Chris Chapman told SmartCompany late last year that telcos had responded to the inquiry but they had not provided any new solutions.