The reliability of Australia’s mobile networks has plummeted after last year’s 3G mobile network switch-off, with new Telecommunications Industry Ombudsman (TIO) figures showing soaring complaints about dropouts, costs, and financial issues.
The number of people complaining about not having a working mobile service grew by 69.2 per cent during fiscal 2024-25 compared with the previous year, according to the TIO’s Annual Report 2024-25 compendium of the year’s 57,592 TIO complaints.
Although the overall number of complaints only grew by 1.6 per cent – including 25,739 complaints about mobile services – mobile service issues outpaced that growth, with the TIO recording a 25.2 per cent surge in complaints about poor mobile coverage.
The number of complaints about a ‘partially restricted service’ grew 37.2 per cent year on year, while 1,430 mobile users complained that they had ‘no phone or internet service’ and those with ‘intermittent service or dropouts’ increased by 28.1 per cent.
“We’re seeing more people struggle with mobile services,” Ombudsman Cynthia Gebert said in releasing the new report, adding that “when you can’t rely on your mobile connection, that’s not just frustrating – it can put the brakes on your life.”
Is the 3G shutdown to blame?
That the latest metrics were all up compared with the 2023-24 year – when the day-long Optus network outage disrupted the country – and 2022-23, when an Optus data breach sent the TIO’s systems into meltdown – suggests another major event may be to blame.
Eyes have naturally been on the October 2024 shutdown of 3G mobile networks, which Telstra and Optus repeatedly delayed as they worked to update thousands of customers still on the legacy services – and both telcos called to task over their post-3G coverage.
“Prior to the shutdown… consumers were concerned about unclear messaging on the impact of the shutdown, device compatibility, and possible impacts to coverage,” TIO Consumer Panel co-chair Lynda Edwards wrote, with complaints spiking in November.
“Post shutdown, consumers are facing issues with device compatibility, including the blocking of devices, and a reduction in coverage, especially for consumers located in regional, rural, and remote communities.”
Yet the government has downplayed the impact: “Only a small number of customer complaints have related to the 3G switch-offs,” the government said in its newly released response to a Parliamentary Committee inquiry into the 3G shutdown.
That response noted Committee recommendations to help customers that have lost mobile coverage since the 3G shutoff, adding that “it is important that each customer’s concern is looked into and that they are supported by their provider.”
Consumers suffering under exploitative providers
Yet the figures also show many customers struggling to get that support, with telcos caught selling consumers services they don’t need or can’t afford – “unconscionable” behaviour for which Optus has been fined $100 million and Telstra fined $50 million.
Reflecting growing cost of living challenges, the number of financial hardship complaints reported to the TIO grew by 46.1 per cent year on year – echoing the findings of a recent TIO report that found telcos “are failing to consistently support customers”.
One customer, who was suffering long-term financial hardship after family violence and health issues, was sold services she couldn’t afford while buying a mobile phone.
Rather than offering her hardship support as required, the telco sold her nearly $7,000 debt to a collection agency and recorded a default in her credit file – a decision that was reversed after the customer contacted the TIO.
Other customers complained about issues such as service and equipment fees (up 30.5 per cent) and mobile providers varying contracts or plans (up 20.5 per cent), or failing to cancel a service when required to (up 9.9 per cent).
There were more unresolved complaints coming back to the TIO after first referral to the telco – up 36.9 per cent from 2023-24 – with 4,305 consumers saying their mobile provider had delayed or failed to act upon their complaint.
Indeed, TIO investigations revealed 15 telcos had not informed customers of their right to escalate disputes to the TIO – a breach of the Complaint Handling Standard – and that “this lack of information delayed or prevented consumers from accessing help.”
“Persistent problems show more need to be done to prevent us seeing the same issues frustrating people each year,” Gebert said, adding that “the large increase in financial hardship complaints tells us people are still under pressure.”
