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Sky News AU
3 days ago
- Business
- Sky News AU
Struggling Aussies prioritising phone and internet bills over food, Telecommunications Industry Ombudsman report reveals
Some low-income Australians have prioritised paying their phone or internet bill over essentials like food or rent, a shock new report has shown. The Telecommunications Industry Ombudsman (TIO) Cynthia Gebert has handed down a review of over 900 complaints about financial hardship in the 12 months to March 30. The TIO's report said price pressures forced many customers to make difficult decisions when balancing their budgets. Poor treatment of customers seeking help by service staff also weighed on struggling Australians. "Some customer service staff made them feel belittled or guilty for requesting help," the report reads. "Some consumers also told us they chose to pay for their telco services over other essential items such as rent or food." One customer said their financial hardship worsened after their telco direct debited money from their account despite having a payment plan in place. 'This is devastating to us, as we are already struggling to meet basic needs, and I need to feed my 5-year-old and pay for petrol to get her to kindergarten,' the anonymous customer said. 'We live in a rural region and even struggle to pay the petrol to seek out the food relief we use.' Another anonymous customer said she asked her telco for an extra week to pay her bill as she needed cash for an urgent car repair. The telco agreed but took the money out on the regular day and refused her a refund, leaving her with limited cash for another week. Ms Gebert said access to phone and internet services should not be considered a luxury, but rather essential services vital for everyday life. 'The consequences of losing access to your phone and internet can be serious, it can lead to people losing work and being unable to access critical support. From there, things can continue to spiral,' she said. 'Losing income and support services can compromise people's food security, safety and health. 'People may be just managing their basic living expenses like food, rent, and petrol, and be one unexpected phone bill or life event away from falling into hardship. 'It's at these critical moments that accessing the support you're entitled to from your telco is more important than ever – so you can manage your bills and stay connected." The shocking report also drew concern from ACOSS' chief executive Cassandra Goldie, who said it highlighted how reliant many of the poorest Australians relied on telco services. 'It's absolutely devastating that people across Australia are going without food just to stay connected," Ms Goldie told "A phone should not be a luxury, but people are going without essentials to pay for it. "For many on the lowest incomes, a phone is the only way to stay in touch with loved ones, access government services or apply for jobs." She noted the report was "another warning" that low-income support payments were making it "impossible for people to meet the cost of essentials". 'When your income doesn't even cover food and rent, staying connected becomes another impossible choice and the system is clearly failing them," Ms Goldie said. 'Social security is meant to provide a safety net but right now it's locking people into poverty. "Without urgent action to lift payments above the poverty line, more people will be pushed into impossible choices just to survive. "We need urgent reform to lift JobSeeker and related social security payments so everyone can cover the basics.' The report showed some customers sought help before they missed payments but were turned away by their provider who said they could not help until payments were officially overdue. There were also reports that some telcos experienced errors that exacerbated financial pain for some customers. Impacted people also raised complaints with the TIO when telcos withdrew more than expected or processed payments on incorrect dates. 'Telcos need to actively rebuild trust with their consumers, and prioritise protecting consumers who are experiencing, or at risk of, financial hardship,' Ms Gebert said. 'We urge telcos to embed the flexibility and understanding that must be part of the way you do business when you provide an essential service to the community.' The recent report marks the first full year since the Australian Communications and Media Authority unveiled the Telecommunications (Financial Hardship) Industry Standard 2024 that requires telcos to establish and promote clear policies for financial hardship.
The Advertiser
09-07-2025
- Business
- The Advertiser
AI chatbots pushing buttons of weary telco customers
Frustrated Australian telco customers risk being forced into endless question loops with artificial intelligence chatbots while the industry ombudsman deals with more complaints. Analysis from the communications watchdog released on Wednesday highlighted a third-straight quarter of higher rates of customer complaint referrals being escalated to the industry ombudsman. The Australian Communications and Media Authority report says 7.1 per cent of customer complaints were referred to the ombudsman, up from 6.9 per cent in the previous quarter. Referring a complaint to the Telecommunications Industry Ombudsman means the issue was not able to be resolved between a customer and their provider. Experts have warned the cost-saving benefits for providers looking to AI to handle customer inquiries do not always produce better experiences. Chatbots are cheaper to use than call centres, but AI struggles to deal with complex customer complaints. "It takes too long for the chatbot to say it does not know," Professor Jeannie Peterson told AAP. "Customers may also be frustrated by the need to constantly repeat the complaint when moving between chatbot and human," the Centre for Artificial Intelligence and Digital Ethics co-founder said. One US survey found 64 per cent of people would prefer companies did not use AI for customer service. Customers are more likely to have complaints when there is no option to move their inquiry to a human, Professor Reeva Lederman from the University of Melbourne told AAP. "Chatbots get repetitive and customers feel they are caught in a loop where their question will never be answered," she said. Using AI to collect customer data for complaints also introduces greater privacy concerns, particularly for people in vulnerable situations or suffering financial problems. "A real danger is that a person might disclose a threat ... and think there is a real person on the line who might take this further," Prof Lederman said. A TIO spokeswoman said customer issues with financial hardship had risen 71.9 per cent when compared to the previous year. ACMA member Samantha Yorke said having to refer complaints to the ombudsman added to consumers frustrations about making a complaint in the first place. "The data shows that some telcos need to do a lot more to address complaints so that customers don't have to escalate the matter to the TIO to have it fixed," she said. Two of the nation's biggest telcos fared particularly poorly in the ACMA analysis, with Optus (31st) and TPG (34th) occupying spots near the bottom of the 36 ranked companies for rate of referred complaints. Telstra - Australia's biggest provider - was 18th, with 31 complaints per 10,000 services. Frustrated Australian telco customers risk being forced into endless question loops with artificial intelligence chatbots while the industry ombudsman deals with more complaints. Analysis from the communications watchdog released on Wednesday highlighted a third-straight quarter of higher rates of customer complaint referrals being escalated to the industry ombudsman. The Australian Communications and Media Authority report says 7.1 per cent of customer complaints were referred to the ombudsman, up from 6.9 per cent in the previous quarter. Referring a complaint to the Telecommunications Industry Ombudsman means the issue was not able to be resolved between a customer and their provider. Experts have warned the cost-saving benefits for providers looking to AI to handle customer inquiries do not always produce better experiences. Chatbots are cheaper to use than call centres, but AI struggles to deal with complex customer complaints. "It takes too long for the chatbot to say it does not know," Professor Jeannie Peterson told AAP. "Customers may also be frustrated by the need to constantly repeat the complaint when moving between chatbot and human," the Centre for Artificial Intelligence and Digital Ethics co-founder said. One US survey found 64 per cent of people would prefer companies did not use AI for customer service. Customers are more likely to have complaints when there is no option to move their inquiry to a human, Professor Reeva Lederman from the University of Melbourne told AAP. "Chatbots get repetitive and customers feel they are caught in a loop where their question will never be answered," she said. Using AI to collect customer data for complaints also introduces greater privacy concerns, particularly for people in vulnerable situations or suffering financial problems. "A real danger is that a person might disclose a threat ... and think there is a real person on the line who might take this further," Prof Lederman said. A TIO spokeswoman said customer issues with financial hardship had risen 71.9 per cent when compared to the previous year. ACMA member Samantha Yorke said having to refer complaints to the ombudsman added to consumers frustrations about making a complaint in the first place. "The data shows that some telcos need to do a lot more to address complaints so that customers don't have to escalate the matter to the TIO to have it fixed," she said. Two of the nation's biggest telcos fared particularly poorly in the ACMA analysis, with Optus (31st) and TPG (34th) occupying spots near the bottom of the 36 ranked companies for rate of referred complaints. Telstra - Australia's biggest provider - was 18th, with 31 complaints per 10,000 services. Frustrated Australian telco customers risk being forced into endless question loops with artificial intelligence chatbots while the industry ombudsman deals with more complaints. Analysis from the communications watchdog released on Wednesday highlighted a third-straight quarter of higher rates of customer complaint referrals being escalated to the industry ombudsman. The Australian Communications and Media Authority report says 7.1 per cent of customer complaints were referred to the ombudsman, up from 6.9 per cent in the previous quarter. Referring a complaint to the Telecommunications Industry Ombudsman means the issue was not able to be resolved between a customer and their provider. Experts have warned the cost-saving benefits for providers looking to AI to handle customer inquiries do not always produce better experiences. Chatbots are cheaper to use than call centres, but AI struggles to deal with complex customer complaints. "It takes too long for the chatbot to say it does not know," Professor Jeannie Peterson told AAP. "Customers may also be frustrated by the need to constantly repeat the complaint when moving between chatbot and human," the Centre for Artificial Intelligence and Digital Ethics co-founder said. One US survey found 64 per cent of people would prefer companies did not use AI for customer service. Customers are more likely to have complaints when there is no option to move their inquiry to a human, Professor Reeva Lederman from the University of Melbourne told AAP. "Chatbots get repetitive and customers feel they are caught in a loop where their question will never be answered," she said. Using AI to collect customer data for complaints also introduces greater privacy concerns, particularly for people in vulnerable situations or suffering financial problems. "A real danger is that a person might disclose a threat ... and think there is a real person on the line who might take this further," Prof Lederman said. A TIO spokeswoman said customer issues with financial hardship had risen 71.9 per cent when compared to the previous year. ACMA member Samantha Yorke said having to refer complaints to the ombudsman added to consumers frustrations about making a complaint in the first place. "The data shows that some telcos need to do a lot more to address complaints so that customers don't have to escalate the matter to the TIO to have it fixed," she said. Two of the nation's biggest telcos fared particularly poorly in the ACMA analysis, with Optus (31st) and TPG (34th) occupying spots near the bottom of the 36 ranked companies for rate of referred complaints. Telstra - Australia's biggest provider - was 18th, with 31 complaints per 10,000 services. Frustrated Australian telco customers risk being forced into endless question loops with artificial intelligence chatbots while the industry ombudsman deals with more complaints. Analysis from the communications watchdog released on Wednesday highlighted a third-straight quarter of higher rates of customer complaint referrals being escalated to the industry ombudsman. The Australian Communications and Media Authority report says 7.1 per cent of customer complaints were referred to the ombudsman, up from 6.9 per cent in the previous quarter. Referring a complaint to the Telecommunications Industry Ombudsman means the issue was not able to be resolved between a customer and their provider. Experts have warned the cost-saving benefits for providers looking to AI to handle customer inquiries do not always produce better experiences. Chatbots are cheaper to use than call centres, but AI struggles to deal with complex customer complaints. "It takes too long for the chatbot to say it does not know," Professor Jeannie Peterson told AAP. "Customers may also be frustrated by the need to constantly repeat the complaint when moving between chatbot and human," the Centre for Artificial Intelligence and Digital Ethics co-founder said. One US survey found 64 per cent of people would prefer companies did not use AI for customer service. Customers are more likely to have complaints when there is no option to move their inquiry to a human, Professor Reeva Lederman from the University of Melbourne told AAP. "Chatbots get repetitive and customers feel they are caught in a loop where their question will never be answered," she said. Using AI to collect customer data for complaints also introduces greater privacy concerns, particularly for people in vulnerable situations or suffering financial problems. "A real danger is that a person might disclose a threat ... and think there is a real person on the line who might take this further," Prof Lederman said. A TIO spokeswoman said customer issues with financial hardship had risen 71.9 per cent when compared to the previous year. ACMA member Samantha Yorke said having to refer complaints to the ombudsman added to consumers frustrations about making a complaint in the first place. "The data shows that some telcos need to do a lot more to address complaints so that customers don't have to escalate the matter to the TIO to have it fixed," she said. Two of the nation's biggest telcos fared particularly poorly in the ACMA analysis, with Optus (31st) and TPG (34th) occupying spots near the bottom of the 36 ranked companies for rate of referred complaints. Telstra - Australia's biggest provider - was 18th, with 31 complaints per 10,000 services.
