Vodafone fuels sharp rise in new TIO complaints

Feb 25, 2011 7:18 AM
Filed under Telco/ISP

"Extremely disappointing".

The Telecommunications Industry Ombudsman has reported a 96 percent rise in complaints lodged against Vodafone in the second half of last year.

About 5,370 new Vodafone complaints were received by the TIO, mostly for "mobile telephone coverage issues, long wait times, failing to act on promises and not being able to contact Vodafone at all".

Vodafone suffered well-documented problems with its network in the latter half of last year, leading to a major class action by disgruntled customers wanting compensation or out of their contracts.

However, the carrier also blamed crafty customers looking for a free iPhone 4 upgrade for a rise in complaints in around September last year.

“Customer frustration with Vodafone is understandable,” the Ombudsman Simon Cohen said.

"It is one thing to have a service problem. But what is particularly concerning is when consumers cannot contact someone to have their problems sorted out.”

The sharp rise in complaints against Vodafone helped fuel an overall 9 percent rise in new complaints across the telecommunications industry, which Cohen described as "extremely disappointing" given a general downward trend in recent months.

The rise in complaints had "mostly been driven by a 20 percent increase in mobile phone service issues," Cohen said.

Vodafone chief Nigel Dews said in a brief statement that the telco had "more work to do" to keep complaint numbers down.

He pointed to initiatives such as 300 new customer service staff hires and planned network improvements as ways the telco was working to address complaints about its network.

Vodafone fuels sharp rise in new TIO complaints

6 comments in this discussion

"In addition by what measure do you determine 'a reasonable service' and who determines it? A customer saying it's so because they had a drop out once upon a time or 5000 customers that have ..."

By cantsleep

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Comments: 6

Johnny Feb 25, 2011 9:46 AM	Who the HELL would want an iphone 4 with vodafone when you cant even use it? i had a 3g service with vodaphony once and it was just crap . Now i'm with telstra and yeah it's great. sure a percentage of complaints could be deemed as whiny consumbers but the TIO soon sorts that out.
Graeme Harrison (prof at-symbol post.harvard.edu) Feb 25, 2011 11:45 AM	The government can act simply and quickly. All ACMA needs to say is that it will monitor complaints and document on ITS WEBSITE what is considered an appropriate response by those affected. The government does not need to modify existing contracts, as under the TPA there is an implied warranty as to the continuity/reliability of the service offered. In situations such as Voda's excessive drop-outs, the telcos know that they are "in default" with the customer contracts. All ACMA need do is note that, from what they have had reported consistently from a wide variety of sources, customers who are adversely affected would be within their rights to determine their contracts to be "terminated by virtue of the non-provision of the agreed service", ACMA could explain that customers of just that telco could simply return their handset (and any other equipment like charger, headphones, etc) not necessarily in original packaging - stating the contract was terminated as at that date, for reasons of non-provision. To facilitate this, the ACMA website should note addresses to which equipment can be delivered/sent in each state capital, and an email address to which the termination notice can be sent (eg the Voda email address used by ACMA) with a CC to an ACMA email address recommended, as proof. The customer should not be liable for any early-termination payments, as the fault was the providers. I cannot believe that a company would dispute such terminations, in light of a regulator determining that the service was inadequate. Sure, any well-below-standards telco then faces a problem of re-selling a variety of part-used handsets, but this is the penalty they need to take into consideration when over-selling the capacity of their network, without adequate upgrading. It is unacceptable for ACMA to send consumers back to dealing with the hopeless telephone support of the telcos. There should be (provided by ACMA) a simple email address by which the consumer can say: 1. I hereby terminate our contract in accordance with ACMA's determination that you have failed to provide sufficient continuity/reliability of service. 2. Billing must stop as of of today, pro-rated strictly to today's date, with no termination, equipment or other extra-ordinary charges. 3. Apply any credits to the credit card, the details of which you are holding for me. 4. The equipment you supplied me has been returned to your reseller at (nominate address). They claimed they could not accept it, but in accordance with ACMA's determination, I just left it on their counter, with my name and address clearly stated on the attached note. 5. I have copied ACMA of this termination, in case they need to make further rulings against you, in light of any refusal to accept the validity of such terminations. 6. Do not phone me. Put any issue you might have in writing, and send a CC to ACMA. By way of disclosure, I have been the independent expert in some of Australia's largest telco/reseller disputes. Typically Alternative Dispute Resolution is used in such cases, but this approach is too complex/expensive for the resolution of consumer issues, where the telco has failed to supply a reasonable service.
ozziebloke Feb 25, 2011 1:56 PM	As a member, our company has attempted effortlessly to laise with the TIO in the last few weeks to establish a situation in which structurele causes would be resolved by systematic investigation. This reason for this was that our customers started to turn to us frustrated with the proceeding with their telco and TIO. Lines were just cut, portings took a year etc. The response of the TIO was, no we are not interested. We hear you, but we do not listen, as it will affect our independency. Rubbish, the TIO never has been independent already on base of the representation in the board and their funding model(most complaints -> most income for TIO). Simon claims that he is amazed about the raise in complaints. Basically he can't. At least not for the last few weeks. For the record we do not have complaints against ever lodged against us, we provide every new customer with a leaflet of the TIO that is how confident we are about our services. We believe that we have a right to speak and we are put in place. The TIO exists because of complaints of members who do not have their customer service on order. The TIO is basically a front-office of the failing members. The level-1 referal system is already more than enough evidence of this. The TIO is not there for members who doing just fine. In case we question the services with a wholesaler we are threatend with being quiet or actual terminated in our contract. Allow me NOT to mention our name ... we still like to be in business tomorrow. Agree full hearted on academical level with Greame. And that is us as a member.
davydp Feb 25, 2011 6:17 PM	Could be just me, but seems to be since 3 and Vodafone merger?
cantsleep Feb 26, 2011 1:14 PM	Graeme! No network can ever guarantee 100% service, 100% of the time. There are too many variables. No network claims to either. To expect that is ridiculous and a fantasy. Contracts by their very nature should be difficult to exit from. Vodafone needs to check the honesty of every customer requesting a free ride out of their contract and obviously should be exhausting every avenue individually to check all reasons for dissatisfaction and trouble shoot accordingly. A customer wishing for a freebie needs to work for it. Sometimes buyers are liars. Not to say that the network hasn't been rough around the edges for a lot of reasons over the last 4 months but Vodafone will bounce back. You can bet on it!
cantsleep Feb 26, 2011 1:20 PM	In addition by what measure do you determine 'a reasonable service' and who determines it? A customer saying it's so because they had a drop out once upon a time or 5000 customers that have reported being affected to the TIO some of which have been told they have no case for termination. Perhaps the other millions of customers are just suffering in silence? Doubt it.