Survey shows more than half of telco customers report problems with service

Tuesday, 14 September 2021

More than half of internet users reported problems with their telco’s service in the last two years, Consumer NZ says.

Results of a survey by the consumer watchdog and the Commerce Commission show 56 per cent of customers reported issues and many battled to get problems fixed.

Among internet customers who contacted their telco about a problem, 54 per cent said it took “a lot of effort” to deal with the company.

Consumer NZ chief executive Jon Duffy said the results showed the industry needed to “up its game and get the basics of customer service right”.

A survey by Consumer NZ and the Commerce Commission shows more than half of customers reported an issue with their telco in the last two years. (File photo)

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However, said some telcos were doing a better job than others, Duffy said.

Of the nine companies rated in the survey, Vodafone had a higher proportion of problems, with 66 per cent of internet customers and 44 per cent of mobile customers reporting issues in the past two years.

Telecommunications commissioner Tristan Gilbertson says there is “significant opportunity for improvement” in the sector. (File photo)

Billing problems continued to dog the telco, Duffy said, with one-in-five Vodafone internet customers reporting an issue with their bill.

The two top performing telcos were 2degrees and Skinny.

More than 70 per cent of 2degrees’ internet customers and 69 per cent of its mobile customers were very satisfied with the service they received.

Skinny (a subsidiary of Spark) rated highest in the mobile category, with an overall satisfaction score of 75 per cent. Skinny customers were also less likely to report problems with the telco’s services.

On Tuesday, the Commerce Commission released a discussion document calling for input on retail service quality issues in the telecmmunications sector.

The document comes after six months of consultation with consumers and industry, as well as the survey, which identified consumer issues ranging from advertising, marketing and engagement, through to billing and customer service, to closing accounts and switching providers.

Telecommunications commissioner Tristan Gilbertson said the report showed there was “significant opportunity for improvement.”

Once final feedback is gathered, the focus will shift to identifying and implementing solutions.

Gilbertson said work to improve retail service quality for consumers was driven by a regulatory regime introduced in 2018.

While competition continued to provide benefits to consumers, it had not addressed all the retail service quality issues.

“We’ve all got a big job ahead of us in this area, but we’re off to a positive start in terms of industry engagement, and I'm looking forward to seeing the necessary focus and resource being applied to this work by telecommunications providers to ensure its success,” Gilbertson said.

Submissions can be made via the commission website by 5pm, Friday 15 October 2021.