Push to help struggling telco customers

It is acting on a federal government directive to formulate new consumer telco safeguards and standards amid the cost-of-living crisis.

“The minister for communications has directed the ACMA to make a new industry standard, due to evidence that current safeguards aren't providing sufficient protections for telco consumers facing financial difficulty,” an ACMA statement said.

The proposed Telecommunications (Financial Hardship) Industry standard would:

• apply to all carriage service providers who deal with residential, small business and not-for-profit customers.
• enhance protections for telco customers who are (or may be) experiencing financial hardship through the provision of information and appropriate financial support to help them meet their payment obligations and remain connected to essential telco services.

ACMA accepted there were “gaps” in existing financial hardship rules under the existing Telecommunications Consumer Protections Code, including the level of protection needed to help customers pay bills and stay connected.

In a statement, ACMA said access to reliable and affordable phone and internet services were vital for work, education, health, entertainment, and social connection, but that economic challenges were a rising threat.

It is seeking submissions by February 15 ahead of the standard coming into effect by March 29, 2024.

Consumers struggling to pay phone bills

The Australian Communications Consumer Action Network (ACCAN) says one in five Australians have missed paying a telco bill because of financial hardship, with others going without essentials such as food or medicine to pay their bills.

The news comes as Telstra expanded its long running Telstra Top Up program.

The partnership with technology for social justice enterprise Infoxchange, the program offers six months of free phone, text and data to Australians doing it financially tough.

The top up has increased from three $40 recharges to a single $160 recharge (including 70GB of data).

Originally designed to help those experiencing homelessness, domestic violence, or a natural disaster, the scheme now includes financially distressed customers affected by food insecurity, mental health challenge, disability or refugee status.

Mission Australia, ACOSS and the Brotherhood of St Laurence are among groups pushing for more help for financially disadvantaged Australians.

Thirty-six charities and community organisations including Anglicare and Financial Counselling Australia have also jointly called on Victorian Premier Jacinta Allan to provide more help to those affected by the cost-of-living crisis.