Telecoms complaints from small businesses grow 52%

Complaints from small businesses about their telecommunications services increased 52% in the last financial year, the Telecommunications Industry Ombudsman (TIO) revealed today.

More than 22,000 complaints were made in 2010-11 by small businesses unable to resolve issues with service providers. Complaints about inadequate or incorrect customer service advice, poor mobile phone coverage, broken promises and bill disputes were the most common issues.

According to ombudsman Simon Cohen, internet and mobile telephone services are critical, sometimes necessary, for Australian small businesses to operate.

“Problems with telecommunications can severely impact on their viability and profits,” Cohen said.

That said, the TIO found that these complaints fell 6% in the final quarter of 2011.

Also, investigations fell by 73%, as service providers and consumers responded positively to the TIO’s new conciliation process.

“I am encouraged that complaints have reduced from record levels in early 2011,” said Cohen.

“However, new complaint levels are higher than the same period last year. The increase in credit management issues for mobile services during this period and the financial overcommitment that is a substantial cause of these complaints is of particular concern.”