Regional consumers and businesses left behind by failing telco infrastructure

Australians in regional, rural and remote areas continue to face significant telco service issues, including  service faults, poor mobile cover and outages, according to a new report from the Telecommunications Industry Ombudsman (TIO).

The TIO received 51,854 complaints from consumers living in regional, rural and remote Australia between July 1, 2021, and June 30, 2024.

“Telecommunication services are essential services, as important to our health and way of life as the electricity and water in our homes,” said Cynthia Gebert, Ombudsman for the TIO, on Wednesday.

“We rely on phone and internet services in emergencies, for work, banking, telehealth services, social cohesion—everything.”

While the TIO report primarily focuses on consumer complaints, these issues extend to local businesses, which also rely heavily on telecommunications services for their operations.

For those outside of metropolitan areas, unreliable telecommunications services are an operational risk.

When a business’s internet goes down or mobile coverage is lost, it can halt operations, delay critical transactions and lead to lost revenue.

With limited options and lengthy delays in resolving service faults, many regional businesses are left vulnerable, unable to compete effectively in the digital marketplace.

The danger of poor telecommunication services

Poor telco services also pose a danger, particularly to those in areas prone to bushfires, floods and cyclones.

This was an issue during the 2020 bushfires when evacuation texts weren’t being delivered to some Telstra customers. This was because the telco was yet to roll out SMS Over WiFi — a service that allows users to send and receive texts over WiFi rather than a mobile network.

This service is essential in rural and remote areas where mobile networks are patchy or non-existent.

Not being able to receive texts also affects access to essential services, security codes for banking and the Australian Taxation Office, telehealth appointments and much more.

It even affected the ability to download the controversial COVIDSafe app that was strongly pushed by the federal government during the height of the pandemic.

Four years on, users from various networks are still reporting that mobile coverage is unreliable, leaving them at risk.

The TIO’s report highlights that in some instances, consumers have been misled about the quality of mobile coverage in their area, only to discover the inadequacies after signing up for services.

The report underscores the particular difficulties faced by consumers in remote areas, who often rely on outdated landline or expensive satellite services when no other options are available.

Additionally, these services are frequently subject to long delays for repairs and are prone to disruption due to weather conditions.

A good example is the Northern Territory, which is yet to gain access to a 5G network, which began rolling out in Australia in 2019.

Considering that 3G will be switched off by Optus and Telstra on October 28 (an extension on the original August deadline) – this is concerning.

One of the things that is missed here is how the death of 3G may affect some 4G devices.

The Department of Infrastructure, Transport, Regional Development, Communications and the Arts flagged that some 4G devices won’t be able to make voice calls once the 3G network is switched off. Some others may not be able to make Triple Zero calls.

This potentially bodes a huge problem for those in rural or remote areas with affected 4G devices who may think they won’t be affected by the removal of 3G.

Australian Small Business and Family Enterprise Ombudsman Bruce Billson has also called for greater awareness of how the 3G network is being used in business equipment and technology, beyond mobile phones.

“The 3G switch-off could affect EFTPOS terminals, security systems and cameras, tablets, smart watches, vending machines and even swipe pads at car parking stations,” Billson said in July.

“Asset tracking tools, surveying instruments, water and environmental monitoring, farm gates and many other wireless operating systems may be affected.”

The Telecommunications Industry Ombudsman’s recommendations

In response to the report findings, the TIO is advocating for a major update to Australia’s telecommunications regulations to better support regional and rural users.

Instead of the current patchwork of rules under the Universal Service Obligation (USO), Statutory Infrastructure Provider (SIP) regime and Customer Service Guarantee (CSG), the TIO suggests creating a single, modern framework. The idea is for a unified approach that sets clear standards for all types of telecom services to enable reliable access.

The TIO also believes the SIP regime should include specific benchmarks so consumers can seek compensation if their service doesn’t meet the expected quality.

Recognising how vital mobile services are, especially in remote areas, the TIO is urging the government to make sure the new regulations reflect what communities actually need.

It also recommends standardising mobile coverage maps and making them easy to access and understand, including details regarding coverage quality and data speeds.

The TIO also wants to close the digital inclusion gap, particularly for First Nations communities. It has stressed the importance of consulting with these communities to create targeted plans and improve mobile access.

“We need a policy agenda that reflects the indispensable nature of telecommunications,” Gebert said.

“Regional, rural and remote consumers are getting left behind, and it’s time that serious efforts are made to address the digital divide in this country.”

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