Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
Telstra has commenced legal proceedings against ASX-listed telephone service reseller, Orion Telecommunications Limited and its subsidiaries claiming to have received complaints from customers about Orion's telemarketing practices.
Orion retails mobile and fixed line telephony services through the Southern Cross Telco and Orion Telecommunications brands. Telstra alleges that sales representatives from Orion and its subsidiaries, Southern Cross Telco Holdings Ltd, Southern Cross Telco Pty Ltd and Orion Telecommunications Australia Pty Ltd, have misrepresented their relationship with Telstra, unduly harassed customers in their telemarketing activities and have transferred customers without their expressed consent.
Telstra says it initiated legal action after it sought, unsuccessfully to secure an undertaking from Orion that it would cease the alleged illegal activities. Telstra has also written to the ACCC to notify it of the Orion Group's alleged misconduct.
Telstra Legal spokesman, Rod Bruem, said that Telstra had been concerned for some time about the complaints of customers regarding alleged high-pressure sales tactics and misrepresentations from some sales staff. "Telstra has attempted to deal directly with Orion regarding its alleged misleading sales tactics for some time but unfortunately to no avail. We have commenced legal proceedings as a last resort."
Orion has for many years promoted its services solely by telemarketing. It uses its own call centre in Hobart, two contract call centres in Melbourne and call centres in India.
Earlier this month Southern Cross Telco announced a trial retail campaign in its home state of Tasmania as a precursor to expanding this to mainland states.
David Bass
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