Media Release

Thursday 12 June 2003
File sharing can lead to hefty bills

The Telecommunications Industry Ombudsman has warned consumers of Broadband Internet services, such as xDSL and Cable, about the dangers of using file sharing software, as the number of people caught unawares by high bills for excess usage continues to rise.

Consumer complaints about Broadband Internet services have increased by 45% in the last 12 months according to statistics released by the TIO today.

From April 2002 until March 2003, the TIO received 1,151 complaints about contracts, faults and provisioning difficulties with xDSL and Cable Internet services. A total of 240 complaints were recorded in the June quarter 2002, increasing to 349 in March 2003.

The TIO also received numerous complaints related to billing, disconnection, customer service, privacy and credit control issues, but these were not categorised according to type and so could not be quantified.

Ombudsman John Pinnock said the rise in Broadband Internet complaints was in line with an increase in consumer take-up of Broadband technologies, and was not of itself a cause for concern.

“Complaint numbers are always high when it comes to new technologies,” he said. “It can take months or even years for consumers and the industry to become accustomed to new methods and systems for billing and provision.

“I am concerned, however, that some consumers are unaware of all of the conditions of use for these services and ending up with high bills as a result.”

Mr Pinnock said consumers commonly:

• failed to heed warnings by their provider regarding usage limits;
• failed to read information made available by their provider about usage;
• failed to realise that usage may include upload as well as download;
• failed to appreciate or understand file sizes;
• left file sharing software activated on their computer thus allowing other users to upload from their PC, without their knowledge.

“When signing up to a broadband service make sure you know what your plan limit is, how usage is calculated, what tools are available for monitoring usage and what charges will be levied if you exceed the usage limits,” Mr Pinnock said.

“If using file sharing software be aware that it is possible for files to be uploaded from your computer even when you are not at home. You may wish to consider logging out of your Internet service and turning your computer off when not in use.

“Finally, make sure you safeguard your Internet service by using a secure password and installing up to date virus software. As the account holder you are legally responsible for any charges incurred on your account.”

TIO’s quarterly complaint statistics

The TIO’s quarterly complaint statistics released today report that a total of 16,356 complaints were lodged in the March 2003 quarter – a 3.8% increase on the December 2002 quarter. Complaints about mobile and landline services increased slightly while complaints about Internet services declined by more than 20%. This decline was due primarily to the collapse of Internet service provider, Just Internet. Although a relatively small company, Just Internet incurred a large number of complaints – more than 1,729 – in ten months from May 2002 to March 2003. The precarious financial position of Just Internet in the months prior to the company being placed into receivership meant the TIO’s complaint handling fees were left unpaid.

Credit control complaints rose dramatically across all service types during the March quarter. The TIO received 1,830 complaints in this quarter compared with 1,321 in December 2002. More than two thirds of these complaints related to the debt recovery practices of TIO members.

Full statistics and further information is available in the June issue of the TIO’s quarterly newsletter, TIO Talks.

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