Telco complaints show rise in compensation claims

The report also shows a decrease in service reliability issues from regional Australia, an increase in mobile complaints and emerging digital platform issues.

View TIO Quarter 1 report 2025-26 (PDF, 793KB)

View the interactive complaints data dashboard

The TIO received 13,547 complaints between July to September 2025, a slight increase of 1.1 per cent from the previous quarter (April – June 2025). 

More compensation claims for phone and internet problems

Of the top 10 issues, people seeking compensation for non-financial loss* recorded the largest spike in July – September 2025, up 16.7 per cent from the previous quarter. 

People asked for compensation following problems with prolonged outages, receiving confusing information and difficulties getting issues resolved with their telco. The resulting stress and inconvenience meant more people expected their telco to make up for it with payments or refunds and discounts. 

Financial hardship complaints also continued to increase during Quarter 1, up 9.6 per cent compared to the previous period. This timing coincided with a rise in inflation, contributing to money issues and showing how important it is that telcos effectively support their customers when they reach out for payment assistance. 

*Non-financial loss involving privacy issues are not included in these figures.

Service reliability complaints down in regional Australia

Of the top 10 issues in regional Australia, all service reliability issues dropped in the July – September 2025 period.
The most significant decreases were for issues with slow data speeds (down 25.4 per cent), intermittent service or dropouts (down 21.1 per cent), poor mobile coverage (down 20.3 per cent) and no service (down 16.8 per cent).

Mobile service problems keep climbing

Despite complaint levels being steady overall, mobile service complaints increased 5.9 per cent from the previous quarter to a total of 5,988 complaints. 

Spotlight on digital platforms highlights consumer protection gap

Today’s report also spotlights the ongoing issues facing digital platform users who are reaching out to the TIO for help. 

The TIO regularly hears from small business owners who get locked out of social media or cloud file storage accounts after system errors, miscommunication or account security breaches. Impacts include losing potential sales and bookings, cutting off communications with customers and losing valuable time and income.  

Current legislation doesn’t allow the TIO or any other body to provide dispute resolution support to digital platform users when things go wrong. The TIO continues to call for the extension of its jurisdiction to make sure this critical gap in consumer protections can be addressed.  

Additional insights from the TIO’s Quarter 1 Complaints Data Report include:

• Of 13,547 complaints raised with the TIO, 89.4 per cent were from residential consumers and 10.6 per cent were from small businesses.
• The highest complaint numbers by state were received from NSW (4,122 complaints) and Victoria (3,825 complaints). The Australian Capital Territory (ACT) saw the largest complaint increase, up 16.9 per cent to 207 total complaints compared to last quarter.
• Brisbane had the most complaints of any Local Government Area at 545 complaints, down 0.5 per cent from the April – June 2025 period.
• The most common issues frustrating consumers were telcos taking no action or delayed action (8,971 complaints), service and equipment fees (5,344 complaints) and fault testing that didn’t fix service problems (1,693 complaints).

Quotes attributable to Ombudsman Cynthia Gebert

“When people face repeated phone and internet failures, they expect their telco to make it right. Sometimes this means compensation. We’re seeing more people ask for payments because the stress and disruption caused by phone and internet problems is simply too high.”

“It’s encouraging to see service reliability improving in regional areas, especially as connectivity becomes more essential. Regional Australia deserves reliable service and it is encouraging to see less people contacting my office about their services not working the way they should.”

“Mobile complaints are still going up. This tells us telcos need to act to restore confidence in mobile services. People are telling us loudly and clearly, they need to know their mobile services will work when its most important, including to contact emergency services.”

“We regularly hear from people locked out of their digital lives and right now, there’s no one with the power to help. With the Government’s social media ban approaching, the need for a fair and independent complaints body is more urgent than ever. The TIO is ready to step into the role of a Communications Ombudsman to close the gap in digital platform protections.”

Notes to Editors

For all media enquiries please contact the Media Team on 0437 548 540 or mediaenquiries@tio.com.au

About the Telecommunications Industry Ombudsman (TIO)

The Telecommunications Industry Ombudsman provides a free and independent dispute resolution service for residential consumers and small businesses who have an unresolved complaint about their phone or internet service.

Consumers and small businesses can get in touch via the TIO website or 1800 062 058