Comms Alliance says codes not regulation the solution to TIO's complaint surge

Stuart Corner
Wednesday, 04 May 2011 16:01

IT Policy - Regulation

Communications Alliance has responded to the alarming increase in complaints to the Telecommunications Industry Ombudsman by saying it demonstrates that the new Telecommunications Consumer Protections (TCP) Code should be implemented as soon as possible.

"A draft revision of the'¦code is awaiting feedback from regulators and, once implemented, will help generate a step-change improvement in service and satisfaction levels across the industry," Communications Alliance said.

The TIO reported that consumer complaints for the first quarter of 2011 were up 31 percent on the previous quarter, prompting Teresa Corbin, CEO of consumer telecoms body, ACCAN to conclude: "There is no choice left for the regulator other than to regulate."

But even before the TIO's latest quarterly figures were released ACMA chairman Chris Chapman was hinting very strongly that the ACMA was gearing up to regulate. He told an industry conference at the end of March, at which the TIO had released preliminary complaints figures: "We have a long way to go to achieve a systemic fix on issues, a step change, which to date, the current co-regulatory approach has not delivered."

And he told the industry that the ACMA was losing patience with claims that it could get its own house in order. "Let me reiterate for industry participants'¦faith, hope and 'she'll be right mate - trust us' has only so much elasticity," Chapman said.

Comms Alliance, however, said its new Code "brings enhanced consumer protections and a strong framework to ensure all service providers are required to comply with the Code." CEO John Stanton pointed out: "A similar code covering Mobile Premium Services has seen consumer complaints in that sector decrease by more than 70 percent."

He added that many service providers were investing heavily in system and operational improvements "to further improve customer experience."

Communications Alliance's response to the latest bad news from the TIO, in which it acknowledged that there is a serious problem, was in stark contrast to the positive spin it put on the last TIO quarterly report, in which the TIO reported an "extremely disappointing" nine percent rise in complaints for the six months to 31 December 2010.

Comms Alliance responded to that by welcoming "a significant improvement in the level of telecommunications industry compliance with the Telecommunications Consumer Protections (TCP) Code," noting that "figures compiled by the TIO show that the number of confirmed breaches of the Code fell by 29.1 percent in the last three months of 2010, compared to the previous quarter."