An important foundation of the TIO scheme is the legal requirement that all telecommunications and internet service providers be members. This ensures that customers of the 1,100 or so Australian providers have an important avenue of recourse if they cannot solve a problem directly with the company concerned.

As the TIO is funded by its members, we are unable to follow up complaints about a provider if that provider refuses to join the scheme. As there is no official register of internet service providers, often the only way the TIO becomes aware of an ISP’s existence is if we receive a complaint from a customer. As there are fewer telecommunications service providers, ensuring that they join the scheme is an easier task.

On the other hand, if a provider is not a member of the scheme, either because it collapses or closes it door for business, then the TIO could do little to help its customers if something goes wrong. A recent example of this occurred with the collapse of the Queensland-based internet service provider Veridas. The TIO received many calls from customers who had been left without internet and telephone services because of the failure of the company. Unfortunately, as Veridas was no longer a member of the scheme, and could not be billed by the TIO for complaints against it, we could do nothing to help its customers.

Under the Telecommunications Act 1997, the Ombudsman has the power to refer providers who do not join or comply with the scheme to the Australian Communications and Media Authority. ACMA may then give the company a written direction and may apply to the Federal Court for civil penalties against a service provider if it fails to comply with a direction.

The TIO prefers, in the first instance, to attempt to enlighten providers of their obligations under the Telecommunications Act, especially when it comes to cooperating with TIO investigations.

From July 1, 2006, where a provider has been given ample opportunity to join or comply with the TIO scheme, it will now be referred to ACMA without delay.

This will enable the TIO to manage more efficiently complainants’ expectations about the likely delays in gaining a resolution to their complaint and limit the time spent by TIO staff in following up requests made of uncooperative members.

Finally, as all telecommunications consumers should reasonably expect to be able to bring an unresolved complaint to the TIO, irrespective of the inclination of their provider to join or comply with the TIO, providers who fail to do the right thing can expect, as a matter of course, to be named on the TIO website, in the annual report and in TIO Talks.


John Pinnock
Ombudsman