Faulty services - in detail

Our approach

When we deal with complaints involving faulty services we consider what is fair and reasonable in the circumstances having regard to the law, relevant industry codes, guidelines, and good practice. 

The law

Faulty goods and services

The Australian Consumer Law sets out consumer guarantees for services, including:

• If a telco supplies services to a consumer, and the consumer, expressly or by implication, makes known to the telco any particular purpose for which the services are being acquired by the consumer, there is a guarantee that the services, and any product resulting from the services, will be reasonably fit for that purpose. 
• If a telco supplies services to a consumer, there is a guarantee that the services will be supplied using an acceptable level of skill or technical knowledge, and the telco will take all necessary care to avoid loss or damage. 
• If a telco agrees to supply services to a consumer, the telco will supply the services within a reasonable time (if no time has been agreed). 

If a telco fails to fulfil a consumer guarantee when supplying services, the Australian Consumer Law provides remedies to the consumer. The appropriate remedy depends on which guarantee is breached, the extent of the failure to meet the guarantee and what the consumer chooses to do, if relevant, in response to the failure. 

Consumer guarantees relating services cannot be excluded, restricted, or modified by contract. 

Repairing faults on CSG services and enhanced call handling features
Key obligations

The Telecommunications (Consumer Protection and Service Standards) Act sets out:

• a universal service regime to ensure that all people in Australia, wherever they reside or carry on business, have reasonable access to a standard telephone service, or an equivalent service if the person has a disability. A service supplied under this regime is called a USO service. USO service obligations only apply to the universal service provider. Telstra is the current universal service provider
• that the ACMA can be directed to make standards about the timeframes for telcos to rectify faults or service difficulties for specified kinds of services 
• that damages should be paid to a customer when a telco contravenes a standard. 

The ACMA created the Customer Service Guarantee Standard to set out performance standards for connecting and repairing faults on CSG services. A CSG service is:

• an eligible telephone service for the purpose of voice telephony between end-users supplied with the same service, whether or not the end-users are connected to the same telecommunications network 
• an equivalent to voice telephony for a particular end-user with a disability, or
• a service that would be used for the purpose of voice telephony (or its equivalent for a particular end-user with a disability) but for the fact that it is used for some other purpose

that is not:

• a mobile or satellite service, unless the mobile or satellite service has been offered as a USO service, or
• a sophisticated business oriented service.

Most residential and small business landline services are CSG services.
The Customer Service Guarantee Standard also applies to enhanced call handling features. An enhanced call handling feature is any of the following when activated by a provider:

• call waiting
• call forwarding
• some call barring
• calling number display
• calling number display blocking.

Timeframes for rectifying faults

For a CSG service or enhanced call handling feature, if a fault does not require external or internal plant work, or does not require the provider to attend the premises, the fault must be rectified by the end of the first full business day after the customer reports the fault.
For all other faults on CSG services or enhanced call handling features, the fault must be rectified within the guaranteed maximum rectification period as follows:

Arrangements to rectify a fault may provide for rectification in a period that is longer than the guaranteed maximum rectification period if the consumer wants the fault to be rectified on a day after the end of the period. Arrangements to rectify a fault may also provide for rectification in a period that is shorter than the guaranteed maximum rectification period.

Exemptions

A provider may be exempt from these performance standards, including when:

• the consumer has agreed to waive their rights under the Customer Service Guarantee Standard
• the number of standard telephone services at the property is six or more
• the telco cannot meet a performance standard because of maintenance or upgrading of a facility or network that is used to supply the service 
• the telco has made a reasonable offer to supply an interim or alternative service, or 
• the telco cannot meet a performance standard because of: 
  • circumstances beyond its control, or
  • the need to move staff or equipment to an area affected by circumstances beyond its control.

Examples of circumstances beyond the telco's control may include: 

• damage to a facility not caused by the telco
• a natural disaster causing mass outages
• extreme weather conditions causing mass outages.

An interim service is a service that gives a consumer a service for telephony (or the equivalent for a person with a disability), and does not cost any more than the CSG service requiring repair. For example, a satellite phone, or free diversion to a mobile phone charged at local call rates. An interim service does not have to provide data transmission, or an enhanced call handling feature, unless this is required to deliver an equivalent service to a person with a disability.
An alternative service is a service that gives a consumer access to a telephone service. It does not need to be charged at the same rate as the CSG service requiring repair. An example is call diversion to a mobile phone charged at mobile rates.

Good industry practice
Fault repair of National Broadband Network services

NBN Co’s Wholesale Broadband Agreement describes the service levels that apply to repairing faults on NBN Co products and services. It sets out the performance objectives that NBN Co will aim to achieve for certain service levels, and describes the wholesale and retail obligations for taking corrective action or compensating providers under the Customer Service Guarantee Standard when NBN Co has contributed to a delay in repairing a fault.

TIO view

When there is a problem with a phone or internet service, consumers should: 

• Contact their telco as soon as possible to report the fault, and
• Contact their telco each time the fault occurs.

Consumers should keep records of the problem with the service, and the times they have contacted their telco.
Telcos should take reasonable steps to investigate and try to fix the service problem. Consumers should reasonably participate in their telco’s attempts to do so. 

Faults on CSG services and enhanced call handling features
Ongoing or recurring faults

Some faults, for example recurring or ongoing faults, are difficult to assess according to the Customer Service Guarantee Standard. We deal with these types of matters on a case by case basis.
We will consider:

• the frequency and nature of the fault
• when and how often the fault was reported
• what the provider has done to rectify any underlying causes of the fault
• the quality of the service between faults
• how the fault has impacted on the consumer’s ability to use their service over the relevant period of time.

If a recurring fault is the same or similar to a fault that the consumer has already reported to the telco and that the telco has not rectified, we will consider the consumer’s eligibility for compensation under the Customer Service Guarantee Standard from the time of the first fault report until the time the fault is actually rectified. 

It is always important that the consumer reports faults to their telco, especially if the fault is recurring or ongoing. 

Interim and alternative services

An offer of an interim or alternative service must be reasonable. 

An offer of an interim service may not be reasonable if, for example, the interim service is a mobile service and mobile coverage at the consumer’s premises is inadequate. 

If a consumer turns down an offer of an interim or alternative service based on information given by the telco that the faulty service is due to be repaired in the near future, we expect the telco to re-offer an interim or alternative service if there are further delays. In these circumstances, if the telco does not re-offer an interim or alternative service, we will consider the consumer’s eligibility for compensation under the Customer Service Guarantee Standard.

Circumstances beyond a provider’s control

If a telco claims an exemption because of circumstances beyond its control, the telco must be able to show that the fault repair delay is a direct result of the circumstances beyond its control, or having to relocate staff and equipment to deal with the problem. If no causal link exists, the consumer may be eligible for compensation under the Customer Service Guarantee Standard for the period of the delay.

Coverage

Coverage can be affected by a number of factors, some of which may be outside the telco’s control to address. When a telco is not able to rectify a coverage issue within a reasonable time because of circumstances it says are outside its control, the outcome of a complaint will usually depend on: 

• the extent to which the consumer is able to use or derive any benefit from the service
• the circumstances that the telco says are outside its control
• the accuracy of the information about coverage given to the consumer at point of sale (for example, was the consumer shown a coverage map or guaranteed coverage in certain areas?), and
• any representations the telco made about the quality of service the consumer would receive.

In considering complaints about coverage, we will also consider matters such as:

• if the consumer specifically told the telco where and how they would be using the service
• where the consumer is trying to use the service
• if the consumer has moved, and
• if the standard of service has changed.

Outages

Where practicable, telcos should schedule any planned maintenance that might affect telecommunications services for off peak hours, and mitigate the effects of planned outages by giving reasonable notice to consumers who will be affected. Planned outages should be as short in duration as practicable, and take into account any commitments or representations the telco made at point of sale about the service quality the consumer would receive. Where practicable, telcos should also notify affected consumers if a planned outage extends for longer than expected, and keep them updated as to when the outage is likely to be rectified. 

Service charges

Other than reasonable outages, a consumer should not be charged for any period where they cannot use their service at all because of a fault or outage. Examples of a reasonable outage include a short, planned upgrade scheduled for the middle of the night or a short, unplanned outage that is fixed within a day. 

Disputes about the cause of faults – independent technicians and covering costs

If the consumer and telco disagree about the cause of a fault, either party may organise an independent technician to attend the premises. In some cases we may expect the telco to pay for this, including when this is agreed to by the telco or if the cause of the fault is found to be the telco’s  responsibility. 

Dealing with a dispute

To assess a complaint involving faulty services we may ask for information from the consumer and telco, including: 

• What is the fault?
• How does it affect the way the consumer uses the service?
• Pre-sale, what information did the telco give the consumer about service quality?
• What have the telco and consumer done since the fault began?
• Was the fault fixed and if so, when?

We may also ask for documents, such as copies of:

• technicians’ fault reports
• invoices for fault assessment if relevant
• evidence of usage both before and after the fault began.

Outcomes

When a faulty service has not been rectified:

• within legislated timeframes if applicable, or
• by an agreed date, or if there is no agreed date, within a reasonable time in the circumstances

the provider should address the impact of the delay on the consumer. This may involve:

• fixing the fault
• offering an interim service
• waiving service charges
• releasing a consumer from contract without exit fees
• paying compensation.

Remedies under the Australian Consumer Law may also apply for any failure of a consumer guarantee.
For a CSG service or enhanced call handling feature, compensation under the Customer Service Guarantee Standard may be payable to the consumer if a provider did not meet a legislated performance standard.
Effective date: 11 March 2016
This page provides broad guidance on what TIO considers fair and reasonable in the circumstances and the relevant law, industry codes, guidelines and good practice. It is not a full statement of the law or  other factors the TIO will consider to determine what is fair and reasonable in the circumstances. The TIO considers each matter brought to it on its own particular merits.