Financial hardship in the telco sector – enhancing consumer protections

Announcement date
7 February 2024
 
Link to announcement
https://www.acma.gov.au/articles/2024-02/new-protections-telco-customers-experiencing-hardship
 
Problem being addressed
There is evidence that current financial hardship rules in the Telecommunications Consumer Protection Code are not working effectively to support consumers experiencing financial vulnerability. ACMA research and reports uncovered significant rates of financial hardship among telecommunications consumers, with only a small fraction of affected customers receiving formal hardship support. Industry data during FY2022 also indicated around 230,000 customers residing in Australia had their services disconnected due to non-payment of their bills. Access to reliable and affordable phone and internet services is essential for work, education, health, entertainment, social connection, and government services. A lack of appropriate support for consumers facing financial difficulties can have profound impacts on social and economic participation.
 
Proposal
To address the issue, ACMA is proposing to introduce an industry standard requiring carriage service providers (CSPs) to provide the appropriate information and support to telecommunications customers experiencing financial hardship. The Standard intends to strengthen safeguards for consumers in vulnerable circumstances.
 
Assessed Impact Analysis outcome
Good practice
 
Assessment comments
The IA addresses the seven IA questions and follows an appropriate policy development process commensurate with the significance of the problem and magnitude of the proposed intervention. In particular, the IA demonstrates high quality analysis of the considered options to implement the Ministerial direction.  
 
Regulatory burden
ACMA's estimates that the preferred option would result in an annual regulatory saving of $0.99 million and likely additional unquantified reduction in costs.