Financial hardship complaints about telcos surge 72 per cent, says Ombudsman

The Telecommunications Industry Ombudsman (TIO) has reported a sharp rise in financial hardship complaints from telco customers, with a 72 per cent increase in the March quarter compared to the same time last year.

Financial hardship complaints about telcos surge 72 per cent, says the Ombudsman. According to the TIO, there were 568 financial hardship complaints between January and March 2025, up from 330 in the same quarter of 2024.

Common themes included telcos refusing payment plans or extensions, offering unaffordable payment arrangements, and disconnecting or suspending services.

Telecommunications Industry Ombudsman Cynthia Gebert said financial hardship remained a serious concern for consumers, with potentially severe consequences.

“What our data reveals is that telcos still have work to do in terms of providing tailored support and repayment options that reflect people’s individual circumstances. There is no ‘one-size-fits-all’ solution,” Ms Gebert said.

“Disconnection or suspension of essential telco services should absolutely be a last resort.

Customer complaint: cancellation fee shock

The Ombudsman highlighted the case of one customer, Prad, who cancelled his service due to high monthly charges and was later hit with a $300 cancellation fee.

“Prad experienced significant distress at being required to pay a fee he was not previously informed of and would struggle to afford. Had he been informed of the fee, he would not have gone ahead with the cancellation,” the TIO said.

Telco complaints top 15,000 as mobile coverage and internet issues grow

Overall, the TIO received more than 15,000 complaints in the quarter. The largest increases were related to poor mobile coverage, delays in establishing a service, and intermittent service or dropouts.

Telstra and Optus were the most complained about providers. However, Telstra complaints fell 13 per cent year on year, while Optus complaints remained relatively unchanged. Vodafone complaints declined by 12.5 per cent, although it recorded the sharpest rise in mobile coverage issues, up 67 per cent.

Other providers that observed significant increases include Circles Australia, up 22.7 per cent for the quarter and 189 per cent year on year. In January, Circles transferred its approximately 150,000 customers to Amaysim.

TPG Group saw a 32 per cent rise in complaints, primarily linked to its internet service, while Dodo saw complaints rise 10.6 per cent.

Small business complaints also rising

Small business complaints rose by three per cent year on year, and by 7 per cent for the quarter with the majority relating to poor mobile coverage and intermittent service or connection dropouts.

“For the second consecutive quarter we’ve seen complaints from small businesses rise, this time by close to 7 per cent,” Ms Gebert said.

“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.”