Rise in NBN complaints outpacing rollout

The proportion of NBN customers complaining about faults to the Telecommunications Industry Ombudsman rose to 0.66 per cent over the last year.

NBN complaints are rising at a faster rate than the number of users, and the industry ombudsman isn't happy.

The proportion of national broadband network customers complaining about faults to the Telecommunications Industry Ombudsman rose to 0.66 per cent in the 12 months to June 30, from 0.50 per cent a year earlier.

Ombudsman Judi Jones said that, while a higher number of complaints was expected due to a big rise in users, the size of the increase is a cause for concern.

"Consumers and small businesses are increasingly reliant on the internet and their mobile phones for their daily lives, so we expect that connectivity to be there instantly and of high quality," Ms Jones told AAP.

"We all want to stream Netflix and not to have to see that spinning dial."

The Telecommunications Industry Ombudsman's annual report released on Wednesday said there were 16,221 fault complaints from 2.44 million NBN users in 2016/17.

That compared to 5,506 complaints from 1.10 million users a year earlier, while total NBN complaints including those about delayed connections soared from 10,487 to 27,195.

Residential customers accounted for 88 per cent of total NBN complaints, with complaints about internet service outweighing those about fixed-line phones 60-40.

"Australians are relying more than ever before on technology to stay connected, to be informed, and to do business, so it is critical that consumers are able to rely on the services they sign up for," Ms Jones said.

While most problems were due to connectivity and speed, Ms Jones said NBN Co, which is building the massive infrastructure project, wasn't necessarily at fault.

She said retail service providers were also to blame as complaints about internet surpassed those about mobile phones for the first time.

The total number of complaints to the industry ombudsman rose 41 per cent, with complaints about mobile and landline services also up - driven by complaints in customer service, billing and payments and fault and complaint handling.

TPG-owned iiNet received the largest year-on-year percentage increase in complaints - excluding Southern Phone which received a spike in complaints following a one-off issue.

The company said it was disappointed and blamed the rise on the increased NBN rollout in the past year.

However, iiNet added that its performance had improved in the past month, with a 21 per cent year-on-year drop in complaints.

Virgin Mobile, on the other hand, was the only service to record a complaints decrease in 2016/17.

The top 10 phone and internet providers, including Telstra and Optus, accounted for 91 per cent of all complaints.

Prime Minister Malcolm Turnbull acknowledged it is never good enough to have complaints and said he's working with the minister and management to improve the experience for customers.

2016/17: A YEAR OF COMPLAINTS

* 158,016 complaints to the Telecommunications Industry Ombudsman vs. 112,000 in 2015/16

* 87.8pct of complaints from residential consumers vs. 11.9pct from small businesses

* 16,221 NBN fault complaints vs. 5,506 in 2015/16

* 8.3 NBN connection delay complaints per 1,000 premises activated

(Source: Telecommunications Industry Ombudsman's 2016/17 Annual Report)


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