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Scams, outages, rip-offs: Clampdown on misbehaving telcos
By David Swan
Australians worn down by poor service, bill shock and data breaches from their phone and internet providers could soon see greater protections as the Albanese government moves to dramatically strengthen penalties against misbehaving telcos.
Legislation that was ticked off by Labor’s caucus on Monday will empower the Australian Communications and Media Authority (ACMA) to hit operators with fines of up to $10 million for misconduct – 40 times higher than current maximums. In serious cases, penalties could be even greater, tied to a company’s turnover or the benefit it gained from wrongdoing.
Minister for Communications Anika Wells.Credit: Alex Ellinghausen
The Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025 will also establish a new national registration scheme, giving the watchdog the power to deregister rogue providers or block new players from entering the market.
The laws will be introduced to parliament this week and will be some of the first reforms from newly minted Communications Minister Anika Wells, who said they would “drive fairness and build trust in the vital telecommunications industry” after years of mounting public anger.
“Our government is cracking down on telcos who cause harm to customers,” she said. “By strengthening consumer protections, it will mean a fairer and better system for everyone.”
The crackdown comes after a bruising period for the sector. Optus is still grappling with reputational damage from its massive 2022 cyberattack and a 14-hour network outage last year that left millions cut off from phones, internet and emergency services.
Optus in June also agreed to a $100 million penalty after it was sued in the Federal Court by the ACCC for selling customers phones and contracts they did not want or need. Many of the consumers were First Nations Australians from regional, remote and very remote parts of Australia, and in some cases, people were sold plans even though they lived in areas where Optus reception was unavailable. New Optus chief executive Stephen Rue has vowed to rebuild customer trust in the telco.
Optus is still grappling with reputational damage from its massive 2022 cyberattack and a 14-hour network outage. Credit: Nikki Short
Telstra likewise has faced customer anger over service blackouts, billing disputes and aggressive sales tactics, particularly targeting vulnerable Australians. It was hit with a $50 million penalty by the Federal Court in 2021 for selling mobile phone plans to Indigenous Australians that left them in thousands of dollars of debt.
TPG, for its part, was issued with a formal warning in June for failing to comply with Triple Zero rules.
“We’ve consulted and worked with all stakeholders in developing these reforms and most importantly we’ve listened to customers about what they need to stay connected, and these changes will make a real difference,” Wells said.
Consumer groups have long accused regulators of being toothless, with penalties for misconduct dwarfed by the profits of Australia’s largest providers. The Australian Communications Consumer Action Network has said fines are often treated as a cost of doing business.
The government says the new laws will bring telcos into line with stricter regimes in banking and energy, sectors in which regulators already have the power to deregister operators and levy penalties tied to company revenue.
The reforms build on recent moves requiring telcos to provide better support for customers in financial hardship and those experiencing domestic and family violence.
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