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Complaints against telcos have spiked, according to a six-monthly report.
The Telecommunications Dispute Resolution service's latest numbers also reveal the most complained-about mobile provider, and the most complained-about of the major broadband providers, and issues that are causing the biggest grizzles.
To account for size, the TDR reports the number of complaints per 10,000 customers - although as it happens Vodafone topped both total complaints and complaints per 10k for the first half of the year in the mobile market, albeit with little difference between the big three in a tightly-bunched field (see chart below).
"We continue to focus on improving customer service and have made a number of significant investments in 2022 - including increased onshoring of our customer services [and] buying back our retail stores to better control customer experience," Vodafone spokesman Matt Flood told the Herald.
"Our customer satisfaction is improving reflecting these changes, but we recognise we still have work to do."
In the broadband market, it was a game of two halves for 2degrees, which drew fewer complaints per 10,000 customers than Spark or Vodafone as its rating improved while Vocus NZ - rebranded Orcon Group before it merged with 2degrees near the end of the reporting period - slipped to become the most complained-about. 2degrees has been asked for comment.
Billing was easily the biggest source of conflict, drawing 536 or 43 per cent of complaints.
Next was poor customer service, which drew 210 complaints, followed by faults (170).
Faults, network service and installation complaints have both fallen away, possibly in part because the UFB fibre rollout is now mostly behind us (the retail telcos have always griped that they've copped flak for problems caused by Chorus and other UFB network operators who fall outside the complaint stats).
Overall, the TDR fielded 1253 complaints in the first half of the year - 34 per cent more than the first half of 2021.
In a way, that's a positive, according to Paul Brislen, chief executive of the Telecommunications Forum (TCF), which represents Spark, Vodafone, 2degrees, Chorus and other telcos. The increase in inquiries has proved an awareness campaign to lift the TDR's low profile gained cut-through.
Many people have been unaware that the TDR exists as a free, independent service to mediate a complaint about your mobile or broadband provider (it's industry-funded but run by Fairway Resolution. Fairway began as the dispute resolution service for ACC in 1999. The Government sold it in 2020, but in its new privately-owned form it still mediates for ACC, among other public and private sector clients).
The TDR began a promotional push earlier this year.
"The advertising campaign is doing exactly what it's supposed to do - raising awareness," Brislen said.
The industry's other main spin point is that although the number of complaints has increased, the number of resolved issues has held steady.
"What's really good to see is the success rate for resolutions is holding up - around 80 per cent of inquiries are resolved without formal intervention which is roughly on par with the pre-advertising drive numbers."
Simply calling the TDR - or letting your phone company know you've been in touch with the complaints body - was all that was needed as 97.1 per cent of cases (or 1048 approaches to the TDR) saw "complaints resolved or closed directly with a provider after initial assistance and referral by TDR".
Of the handful of complaints that went further during the first-half of the year:
• 15 were collaboratively settled between provider and customer with help from a TDR mediator or adjudicator
• 3 The saw a TDR adjudicator determine that the complaint was successful, which means that the consumer's complaint prevailed.
• 4 consumer complaints were partially upheld by a TDR adjudicator
• 9 complaints were not upheld, meaning the TDR adjudicator sided with the telco
The Commerce Commission has a review of the TDR under way - as it does periodically under the Telecommunications Act - which is due to wrap up early next year.
In submissions to the watchdog, one of the TDR's own members, Spark, said awareness of the free disputes resolution service could be better.
The Citizens Advice Bureau and Age Concern New Zealand expressed a similar sentiment, noting that their clients were often unaware that the TDR even existed.
That's a key point given part of the TDR's remit is to field complaints and inquiries about the withdrawal of copper service, which will affect a lot of poorer and older Kiwis represented by the CAB and Age Concern.
A ComCom discussion document also noted that it's not a legislative requirement for a service provider to join the Telecommunications Forum, whose members automatically become part of the TDR.
One of the ISPs the regulator has tussled with, MyRepublic, is not a member. Neither is an emerging force in local broadband - Elon Musk's global Starlink satellite broadband service.
No law change is in the works, but the ComCom says it will begin requiring telcos to disclose whether they belong to the Telecommunications Dispute Resolution service.
Brislen welcomed that move.
He also encouraged non-members to join. He said it would help the firms and sector overall.
"Having a strong dispute resolution scheme is good for the industry as well as for the customers - it means we can take a hard look at our processes and make sure they're fit for purpose. Part of the TDR model is the ability to see any systemic issues that may be arising within a provider or within a process and feed those back to whoever is responsible so we can resolve issues quickly and effectively."
While a governance review of the TDR is ongoing (it's due to wrap up early next year), the ComCom has already leaned on Spark, Vodafone and 2degrees to make their marketing about different broadband technology options more clear, and to provide customers information about their usage and spending that would help them decide whether they were on the best plan.
The Commerce Commission recently engaged Consumer NZ to assess progress.
Once the results were in, Telecommunications Commissioner Tristan Gilbertson said Spark, Vodafone and 2degrees customers were now getting better usage and spend information than before, "But there are clearly significant opportunities for further improvement across the board."
The recent round of reforms also saw a new provision that allows you to walk away from bad broadband service without paying any penalty for leaving before your contract's up if a provider "materially fails to deliver".
Neither the regulator nor the TCF could offer the Herald a working definition of "materially fails to deliver", however.
Test cases will be required to bring it into force. That is, a few calls by customers to the Telecommunications Dispute Resolution service.
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