Q3 data reveals upward trend in financial hardship issues and rising small business complaints

The Telecommunications Industry Ombudsman (TIO) has released its FY25 Quarter 3 (Q3) complaints data, revealing a concerning upward trend in financial hardship complaints compared with the same period last year. Additionally, small business complaints continue to climb for the second consecutive quarter.

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TIO data revealed overall complaint numbers remain steady with 15,385 telco complaints received from January to March 2025, reflecting a slight increase of 0.6 per cent compared with the previous quarter (October – December 2024). Mobile service and internet complaints remain the highest proportion of all complaints at 43.9 per cent and 40.6 per cent respectively, although complaints about mobile have dropped 8.1 per cent when compared with the previous quarter.

Amid rising cost-of-living pressures, consumers contacting the TIO with issues related to financial hardship or repayment arrangements have leapt 71.9 per cent compared with the same period last year but decreased by 8.1 per cent against the previous quarter. Recurring themes within financial hardship complaints include telcos refusing payment plans or extensions, offering unsuitable or unaffordable payment arrangements and service disconnection or suspension.

Complaints made by small businesses are up compared to the previous quarter by 6.9 per cent with a total of 1,767 complaints. The increase in small business complaints can be partly attributed to service issues following the 3G network shutdown, with the most significant increases in complaints related to poor mobile coverage and intermittent service or dropouts.

Other key insights from TIO’s January to March 2025 data include:

• When compared with Q2 insights, six of the top ten providers have experienced a rise in complaint numbers. Telstra, Optus, and Vodafone maintain the highest share of complaints.
• More consumers are making complaints involving inadequate fault testing, where a provider’s fault testing doesn’t work, or it’s too difficult or impractical. This was the largest keyword increase compared with the previous quarter, up by 26.9 per cent.
• Poor mobile coverage problems are on the rise for both residential and small business consumers, increasing by 25.3 per cent across the board – the second largest keyword increase since last quarter.
• The top five LGAs with the highest number of complaints are Brisbane (604 complaints), Gold Coast (358 complaints), Moreton Bay (260 complaints), Wyndham (220 complaints) and the ACT (216 complaints). These LGAs contributed to 10.8 per cent of total complaints.
• A total of 422 complaints were made by First Nations consumers. The primary complaint issues were service and equipment fees, intermittent service or dropouts and no phone or internet service.

Read the data insights paper for more information.

Quotes attributable to Telecommunications Industry Ombudsman, Cynthia Gebert:

“Financial hardship remains a real concern for consumers contacting the TIO and its impacts can be severe. What our data reveals is that telcos still have work to do in terms of providing tailored support and repayment options for people that reflect their individual circumstances – there’s no ‘one-size-fits-all’ solution. Disconnection or suspension of essential telco services should absolutely be a last resort.

“For the second consecutive quarter we’ve seen complaints from small businesses rise, this time by close to 7 per cent. What we’re hearing from small businesses is how serious the impact of persistent mobile and internet problems is on their ability to provide good customer service and operate efficiently. It’s impacting people’s livelihoods and something telcos should be working closely with their small business customers to address.”

ENDS

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