Telstra’s getting bigger – and so are the complaints. It’s not alone
Telstra's half-year results show growth in mobile customers, but complaints against the telco and other big brands are surging as per the ombudsman's latest report.
Telstra's half-year profits are up as more people sign up for its mobile services.
Let's break this down, especially considering Telstra's premium pricing, before diving into the rise in complaints.
"Our mobile business has continued to perform strongly, with 119,000 new mobile handheld customers," said Telstra CEO Vicki Brady in a media release.
To keep the momentum going, Telstra is set to invest an extra $800 million into its mobile network over the next four years. It's how Telstra is defending price hikes that we've seen the last couple of years.
Telstra's 5G network now reaches 91% of the Australian population, and as of December 2024, 60% of its mobile traffic runs on 5G.
All of this is particularly interesting since TPG-Vodafone has been ramping up its regional growth after partnering with Optus and doubling its network coverage.
Still, Telstra isn't worried, pointing out that it covers double the area of Optus's network and around three times more than the TPG-Vodafone network. That's why "people choose its network".
Top 10 providers by number of complaints in Australia
The Telecommunications Industry Ombudsman (TIO) has noted a dramatic increase in the number of complaints in the October to December 2024 quarter.
Complaints about mobile services rose by 23.2% while internet services had a more modest 3.1% rise.
The top five complaints included no or delayed action by the provider, service and equipment fees, no phone or internet service, intermittent service or dropouts, and inadequate fault testing.
Telstra, Optus and Vodafone continue to have the highest number of complaints. Circles Life saw quite an uplift which might taper off given its Australian customer base has now been acquired by amaysim.
| Providers | Complaint numbers this quarter | Same period last year |
|---|---|---|
| Telstra | 5,591 | 5,390 |
| Optus | 3,846 | 4,440 |
| Vodafone Australia | 1,270 | 1,186 |
| TPG Group | 642 | 513 |
| iiNet | 545 | 419 |
| Southern Phone | 356 | 209 |
| Medion Australia (owns ALDImobile) | 275 | 97 |
| Aussie Broadband | 248 | 222 |
| Dodo | 217 | 230 |
| Circles Life Australia | 172 | 66 |
Separately, the 3G shutdown caused 190 complaints in October, rising to 566 in November, then dropping in December. Most complaints were about mobile service reliability issues.
"Everyone should have access to the service they're promised, yet we are seeing an increase in persistent challenges with patchy service and dropouts, and no phone or internet service," Cynthia Gebert from the ombudsman said.
"[However] it is encouraging to see the drop-off in 3G shutdown complaints in December, yet we are continuing to hear from people in rural and regional Victoria who are facing ongoing challenges.
"I implore the telcos to keep working on solutions that ensure equal access to reliable phone and internet service for all people in Australia."
A Telstra spokesperson reflected on the TIO analysis stating: "For our team, even one complaint is one too many. We're working every day to improve the experience for our customers and fix issues as quickly as we can.
"We continue to see a decline in 3G-related complaints and, despite the 9% quarter-on-quarter increase, we still ended H1 slightly lower than FY24."
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