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Annual Report 2011

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Annual Report 2011 Telecommunications Industry Ombudsman TELECOMMUNICATIONS INDUSTRY OMBUDSMAN 2011 ANNUAL REPORT A year of change CONTENTS ABOUT US 1 How the TIO works 1 Board and Council 2 THE YEAR AT A GLANCE 5 Ombudsman’s overview 5 A year of change 6 Highlights 7 Top trends 2010-11 8 PERFORMANCE 11 Resolving complaints 11 Our organisation 18 Contributing to the co-regulatory environment 22 Creating awareness 23 The Road Ahead 26 TIO IN NUMBERS 27 Complaint statistics 2010–11 27 Top 10 members 32 Complaints by member 37 Timeliness 49 Industry Codes 50 FiNANCiaL REPORT FOR THE YEAR ENDED 30 JUNE 2011 55 Financial report 56 APPENDICES 88 Appendix 1 Systemic issues 1 July 2010- 30 June 2011 88 Appendix 2 List of public submissions made by the TIO 91 Appendix 3 Calendar of outreach activities 93 Appendix 4 Issues by Category 94 Appendix 5 Explanation of TIO data terms 108 1 ABOUT US How the TIO works The Telecommunications Industry Ombudsman is a fast, free and fair dispute resolution service for small business and residential consumers who have a complaint about their telephone or internet service in Australia. We are independent and do not take sides. Our goal is to settle disputes quickly in an objective and non-bureaucratic way. We are able to investigate complaints about telephone and internet services, including by collecting all documentation and information relevant to the complaint. We have the authority to make binding decisions (decisions a telecommunications company is legally obliged to implement) up to the value of $30,000, and recommendations up to the value of $85,000. The TIO is independent of telecommunications service providers, consumer groups and government. The TIO is governed by a Council and a Board of Directors, and is managed by an independent Ombudsman and a Deputy Ombudsman. The Council is comprised of five representatives from service providers and five consumer representatives, with an independent chairman. For more information about our governance structure, complaint handling procedures, position statements, and who can make a complaint and how, please visit our website. Telecommunications Industry Ombudsman 2011 Annual Report 2 ABOUT US: BOARD AND COUNCIL Statement of the Council Chair Normally, a Chairman would be Our TIO Council plays a pivotal role in delighted to report on growth in an governing the TIO scheme and I am annual review. But, growth in privileged to work with such a talented complaints to the TIO is not something and committed team. I would like to celebrate. to thank outgoing Council members In 2010-11, we received almost 200,000 Jackie Giles and Leroy Parkinson for new complaints from consumers. About their service to Council and welcome 90 per cent of these are resolved as a John Wilkes, Dr Paul Harrison and “level one” complaint. Many of these Jonathan Matthews as new members. complaints could have been resolved I also note the reappointment of directly by the industry member if the Chris Dodds and Loretta Kreet to Council customer had been able to contact the for a further term and very much appropriate department of that member. appreciate their continued dedication to the Scheme. Sadly, an increasing number of customers are unable to make the appropriate I would especially like to thank Virginia connections with their provider, or their Hickey, who completed her term as Chair discussions with the provider are of Council in 2010, for her leadership of ineffective, and are contacting the TIO the Council during a period of rapid instead. change and for her sound advice and help to me as the incoming Chair. Industry needs to provide stronger leadership in both determining and Finally, I offer my thanks to the TIO eliminating the root causes of customer Board. In addition to ensuring ongoing complaints as well as ensuring that their funding to the TIO, their wisdom and customers can readily contact their encouragement to ensure that we have a complaint handling department to enable world class TIO scheme in place an expedient resolution. The TIO’s doors facilitates both a refreshing and are open for industry members that would enjoyable working environment. benefit from our advice and insights on how to improve service to customers. The growth in complaints received has certainly provided challenges for our Andrew Dyer management and I would like to thank Ombudsman Simon Cohen and Deputy Chairman of Council Ombudsman Diane Carmody for their strong leadership throughout the year in readily adapting to these conditions. Telecommunications Industry Ombudsman 2011 Annual Report 3 ABOUT US: BOARD AND COUNCIL Statement of the Board Chair Complaint handling activity increased from 1,162 at 30 June 2010 to 1,214 at in 2010-11, following a year of reduced 30 June 2011. One hundred new members complaint demand in 2009-10. joined the scheme and 48 members New complaints increased by 17.8 per cent, departed the scheme. I welcome all new which was disappointing, but escalated members and wish departing members complaints, those longer, more complex well for the future. and costly complaints which are not I would like to thank all the directors for resolved at an early stage by members, the expertise and professionalism they decreased by 14.8 per cent, which was bring to the strategic and financial very pleasing. The tools and experience management of the TIO, and the members of recent years, along with some fresh of the TIO Council, headed by new and innovative approaches to complaint Chairman Andrew Dyer, for their valuable handling, assisted the TIO to successfully work in developing policy and overseeing cope with the overall increase. the operations of the company. I would particularly like to thank Virginia Hickey The increased demand also placed who departed as Chair of Council during additional stress on the core business IT the year. platform. Short term solutions allowed the current system to meet demand but the The Ombudsman, Simon Cohen, has need for the replacement of the ageing quickly established an increased system became clearer. Considerable work stakeholder focus and improved the has now been completed on this major operational performance of the company. project which will be implemented before I would like to thank him, his executive the end of 2011-12. team and all the TIO staff for their hard work throughout the year. An excellent financial result was achieved, balancing the needs of the TIO with the financial commitment required of the funding members. An operating surplus of $961,819 was achieved. John Rohan The transition from quarterly billing in Chairman of the Board advance to monthly billing in arrears was completed and is now in place for all members. The total number of members increased Telecommunications Industry Ombudsman 2011 Annual Report 4 ABOUT US: BOARD AND COUNCIL About the Board and Council Board and Council activities in 2010-11 The TIO Scheme is governed by a Board and a Council. The Board met eight times in 2010-11, and the Council met six times. There was The Board has corporate governance one joint meeting of Board and Council. responsibilities and is mainly made up of There were a number of changes to the individuals nominated by Council throughout the year. Andrew Dyer telecommunications service providers, the succeeded Virginia Hickey as Chair in members of the TIO Scheme. The Board is December 2010. Mr Dyer is a company responsible for setting global limits for director who serves on a number of our funding and managing the business, boards, including utility companies and affairs and property of TIO Limited. non-profit and cultural organisations. The TIO Council is made up of an equal Dr Paul Harrison, a specialist in marketing number of representatives of consumers and consumer behaviour, joined the and service providers, with an Council on 1 July 2010 as a consumer independent Chair. The TIO Council has representative. John Wilkes was oversight of the TIO Scheme. The appointed as the representative for Council’s responsibilities include Vodafone Hutchison Australia, replacing maintaining the Ombudsman’s Jackie Giles. Jonathan Matthews from independence by acting as an Intelligent IP Communications was intermediary between the Ombudsman elected unopposed to the Council, filling and the Board, and monitoring and the vacancy created by the departure of making recommendations about Leroy Parkinson. amendments to the TIO Constitution. There were no changes to the membership of the Board. More details about our Board and Council members can be viewed in the About Us section of our website. Telecommunications Industry Ombudsman 2011 Annual Report 5 THE YEAR AT A GLANCE Ombudsman’s Overview I am pleased to present this report We made more than 20 submissions on the activities of my office during to government and industry a year of tremendous change. inquiries to provide an independent In 2010-11, the TIO received 197,682 new and expert perspective. complaints. This was an increase of more We also raised with service than 17 per cent on the previous year, providers more than 50 systemic and our busiest year on record. Mobile problems – ranging from sales and phone complaints were responsible for transfer practices to billing and this increase – up more than 50 per cent credit management issues – to to more than 112,000 new complaints. improve services for large numbers While the well publicised network and of consumers. customer service issues affecting With all these changes, TIO officers Vodafone in early 2011 were the cause of demonstrated an outstanding much of this increase, this company was capacity to respond to the not alone in receiving more complaints. challenges of the past year. Credit management issues generally, Consumers continue to report high including complaints about unexpectedly satisfaction with the service we high bills, continued to increase.
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