Telstra’s customer service has again become a talking point in the local community after several media stories. 

Recently Telstra has announced a new service charge, presided over a communications outage in Cannington and been brought before the Australian Corruption and Crime Commission.

This blog is an opportunity to provide more information on these issues and also to consider the state of the Australian Telecommunications Industry in 2009.

It would be interesting to get your feedback but I will declare that I am a Telstra shareholder and I am also a great believer in a free competitive market.

A new service fee

In late July Telstra customers across the country received letters notifying them of a new $2.20 charge for settling bills by non-electronic means.  The press release read:

Commencing on 14 September 2009, Telstra will charge a $2.20 administration fee for each bill payment sent by mail or in person at a Telstra Shop or Australia Post, unless an exemption applies.  The existing credit card payment processing fee will increase to one percent of the payment amount for Mastercard, VISA, and American Express and to two per cent of the payment amount for Diners Club, plus applicable GST.

Understandably, many people across the local area are disappointed with this decision.  Although Pensioner Discount customers and Disability Program customers are exempt from these new rules, many other locals, due to simple convenience, prefer to use non-electronic methods to pay their bills.

I certainly do not support Telstra’s decision to charge customers for this service.  However we have to accept that Telstra, since 2007, is a privatised entity.  It makes its own business decisions and will lose or win customers by those decisions.

We may not like what Telstra has done but at least in metropolitan Perth there is some competition for Telstra. I am hopeful that rival companies will try and offer a better deal for potential customers.

I believe Optus introduced fees prior to Telstra and the response by Telstra smacks of opportunism by using Optus as an excuse.

Competition Commission

Of course there is regulatory oversight of the telecommunications industry by the ACCC.  In this case many will question the fact that Telstra was following the decision of its rival Optus to introduce a service charge.

Regulation is always a delicate matter and the Telecommunications industry should perhaps look to the relative success the previous Government had in regulating the banking industry.

During the recent months of economic downturn, the Australian banking system has faired very well.  Australian banks have survived the downturn in the economy due to the Howard Government setting up a regulatory system under APRA that has struck a good balance between free market enterprise and consumer interest.

At a local level, I was pleased to see NAB eliminate their overdraft fees recently.  I believe ANZ are also considering fee reductions to make their products more attractive to the market place.  I hope this will spark some more competition between banks and lead to a reduction of more unnecessary fees.

It is interesting to compare the decision of banks to reduce fees obviously reacting to the market and then the direction taken by telecommunications companies in introducing fees. Maybe the telcos could learn something from the banks.

The ACCC has a role to play in ensuring that competition in the telecommunications industry is allowed to occur on a level playing field.

A good example is a case the ACCC has brought before the Federal Court.  Last week, after ACCC investigation, Telstra admitted to the Federal Court that it was guilty of misleading and deceptive conduct in denying competitors access to its copper works.

The Corporation could face a fine of up to $300m.

Cannington Service Outage

Sometimes Telstra bares the brunt of complaints for ‘Acts of God’ that it can do little about.

Local businesses and households in the Cannington area have been reporting a range of problems with their telecommunications services recently.

In one particular area 77 businesses lost their phone security, fax and internet lines for several days.  One business owner claimed that the problems had cost him $20,000.

The reason for the disruption was the need to replace 400m worth of cable damaged by rain – an incident that Telstra was trying to complete as quickly as possible.

Having said that, the main complaint I received from Cannington residents was poor customer service – and there is no excuse for that.

As a small businessman, I understand that many people’s livelihoods depend upon the telecommunications industry.  Some understanding is needed from both sides.

I will be writing to Telstra on behalf of Cannington Residents on this matter.

Here to help

Many people are finding it difficult to get their problems fixed by Telstra. 

My office has been working to help resolve individual cases and will continue to do so.  I have issued a telecommunications questionnaire to local residents to offer the support of my office in resolving their problems. If you have not received a questionnaire and would like to; please contact my office.

I am also aware of broadband issues in the electorate.

I recently met with the Eastern Metropolitan Regional Council to discuss the notorious broadband blackspot suburbs of Ascot, Redcliffe, Kewdale, Cloverdale and Rivervale.

I am happy to make representations of behalf of constituents to companies and relevant Government departments in the pursuit of finding solutions for local issues.

If I can be of any assistance with your telecommunications problems, click here to contact me or please leave a comment on my blog.