2 ms·
It’s more like $30 a day for every level 1 complaint open with TIO and cost goes up from there. I seem to remember level 3 is around $250 a day though memory is
by frupert52 5y ago
It’s more like $30 a day for every level 1 complaint open with TIO and cost goes up from there. I seem to remember level 3 is around $250 a day though memory is becoming increasingly unreliable.
Point is, even if TIO sides with the telco (unlikely, they encourage both parties to find a middle ground as they are consumer first oriented) on a case where it takes for example 10 days (again, unlikely) to resolve; the margin[1] on a residential NBN service with a budget provider like TPG has already evaporated and that’s without considering costs of having TIO liaison staff, etc.
It’s a good model because it encourages the telco to resolve the complaint properly and in the customers favour before the problem can make it to TIO as once it gets to them, it always costs the telco money. Provider is better off wearing $100 cost to resolve than have the complaint spend 3 days with TIO level 1, taking up time and resources whilst also becoming a publicised negative statistic (TIO regularly publish report outlining telco performance from a number of complaints perspective).
I think your suggestion is a good one. Just adding this detail because I think it’s important to note that the model is actually about encouraging better complaint handling and customer service than just being about fines and punishment.
[1] assuming 12 month term on approx $65/m service but I am speaking in broad terms