Watchdog to make it easier for broadband users to get complaints heard

Monday, 30 August 2021

Disputes scheme will be able to hear complaints about broadband speeds and congestion and network coverage under ComCom proposal.

Consumers experiencing poor broadband speeds and network coverage should find it easier to get their complaints heard from the end of this year.

The Commerce Commission has recommended making dozens of significant changes favouring consumers to the Telecommunications Disputes Resolution Scheme (TDRS).

They include removing restrictions which prevented people from complaining about limitations to network coverage, broadband speeds and congestion, and about hardware sold by telcos.

Other changes will see the scheme managers later publish anonymised determinations so people can see how complaints have turned out and whether complaints have been judged as being within the TDRS’ jurisdiction.

* Telco commissioner Tristan Gilbertson has two big tasks and a 'paradox' to fix

* Commission asks: Why so many telco complaints?

Consumers will no longer have to wait six weeks if they are unhappy with their telco’s own handling of their complaint before lodging a complaint through the TDRS, with that cooling off period set to drop to 10 days from April under the watchdog’s proposal.

Telecommunications commissioner Tristan Gilbertson says research shows most consumers have not heard of the Telecommunications Disputes Resolution Scheme.

The TDRS was set up in 2007 as a voluntary industry scheme in response to pressure from government ministers who were increasingly frustrated with complaints about telcos’ performance landing on their own doorstep.

It provides a free way for disgruntled consumers to take unresolved complaints about internet, phone and mobile services to arbitration once they have failed to resolve the matter with their provider.

All the larger telcos including Spark, Vodafone, 2degrees and Vocus and many smaller internet providers abide by the scheme, although there have been criticisms – which the Commerce Commission also hopes to address through reforms – that it is not sufficiently promoted.

Compensation payments for any successful complaints are currently capped at $15,000, though the commission indicated that could be increased.

Telecommunications commissioner Tristan Gilbertson said the TDRS needed to “raise its profile and performance” to become a trusted and useful tool for consumers.

“Consumer complaints in the telecommunications sector have doubled over the last five years. This indicates that many of the problems that led to the scheme being established persist,” he said.

“Our work shows that most consumers have never heard of the TDRS and, even if they have, they can find themselves locked out because many basic issues, including some speed and performance problems, are currently excluded.”

The Telecommunications Forum, which represents major telcos, said the industry was looking forward to working with the Commerce Commission to address the areas of concern reflected in its review.

Chief executive Paul Brislen said the fact that only 2 per cent of complaints raised with telcos resulted in formal complaints to the TDRS was a good indication New Zealanders were on the whole receiving good customer service.

The recommendations to improve the TDRS are the second major initiative by Gilbertson in a month to establish more protections for consumers.

He wrote to telcos earlier in August warning them that customers were being confused over their broadband options ahead of the gradual closure of the copper phone network and signalling the commission would step in if their marketing was not ‘brought into line’.

Gilbertson said in April that New Zealand was “a world leader” in terms of the deployment, uptake and the affordability of next-generation fixed and mobile networks and industry structure and regulatory design, but there were still some matters that required attention in the industry.