Telco problems a big cost for small businesses

A bundle of telco services isolated on white

The latest report by the Telecommunications Industry Ombudsman has put the spotlight on the struggles facing small businesses due to issues with their telecommunications service providers.

In its report Addressing the causes of small business complaints, the Telecommunications Industry Ombudsman noted that since July 2016, more than 19,000 complaints have been lodged by small businesses about their phone and internet services. The issues small-business owners have raised range from unsuitable plans to longer than expected times to connect new services and communication breakdowns when fixing faults. The problems are compounded by the fact that many small businesses lack a suitable backup plan when phone and internet services are disrupted.

The report also revealed the heavy financial impact these small businesses bear due to disrupted phone and internet services, with about 1100 complaints involving claims for business loss compensation were lodged between September 2019 to March 2020.

In addition to the small business, the insights of nine phone and internet providers were also included in the report. These providers offered their perspectives on the issues and how they are addressing them.

“We carried out this investigation before the devastating bushfires and COVID-19 pandemic brought unprecedented challenges to so many small businesses,” Telecommunications Industry Ombudsman, Judi Jones, said. “While the top complaint issues reported to us by small businesses are so far unchanged, the impact of these issues may very well be greater.

“The relationship between small businesses and their providers is vital to the businesses’ ongoing success,” Jones added. “Any issues between a small business and their provider in the delivery of a service can have significant consequences.”

The report recommended that small businesses and the phone and internet providers:

  • work together to identify the business’s needs and suitable options before making any service agreements
  • minimise the risks when connecting new services by double-checking information, prepare for contingencies and ensure transparency
  • collaborate with one another to fix issues
  • minimise financial loss with a back-up plan in case of service disruption.

“During government restrictions to curb the pandemic, many small businesses became solely reliant on phone and internet services to continue operating,” Jones said. “As we begin the return to workplaces, our guidance around working together to fix faults and having a back-up plan may be crucial at this time.”