The telecommunications sector in Australia is facing significant scrutiny as recent changes to speed tiers by the National Broadband Network (NBN) have highlighted growing disparities among consumers. As of mid-September 2023, NBN increased speed tiers for homes and businesses using fixed-line connections, with many plans seeing speed improvements of up to five times at no additional cost. Despite this positive development, a troubling trend emerges: lower-speed plans remain unaffected, exacerbating the divide between those who can afford premium services and those who cannot.
This disparity is particularly concerning given the critical role of reliable internet access in modern life. According to the Australian Communications Consumer Action Network (ACCAN), nearly 89 percent of consumers reported that their home internet connection is vital for their daily activities, with price being the most significant factor influencing their mobile and internet service choices. Disturbingly, only 18 percent of surveyed consumers expressed high trust in telecommunications companies to keep costs low, and just 19 percent believed these companies prioritize consumer interests.
The findings underscore a significant challenge for the telecommunications industry, particularly in light of recent unconscionable conduct cases that have exposed the sector’s failures to safeguard vulnerable customers. The Telecommunications Consumer Protection (TCP) Code, which governs sales practices and financial assessments, is self-regulated by the industry, leading to inadequate protections for consumers who need them most.
Calls for Stronger Regulation in the Telco Sector
In response to these systemic issues, the Telecommunications Amendment (Enhancing Consumer Safeguards) Bill 2025 (TECS Bill) is currently under discussion in Parliament. Advocates for consumer rights argue that this bill is essential for strengthening regulatory powers and penalties concerning industry codes. While the proposed legislation marks progress in areas such as carrier registration, critics argue that the existing TCP Code lacks the necessary clarity and protections, hampering effective regulation.
The Fair Call Coalition, an alliance of over 20 consumer organizations, is urging the Australian Communications and Media Authority (ACMA) to abandon self-regulation in favor of direct regulation of essential telecommunications protections. Even within the ACMA, there are concerns about the inadequacy of the current system. Evidence obtained by ACCAN through freedom-of-information requests shows that the ACMA has indicated a willingness to pursue direct regulation unless significant improvements are made by the end of 2023.
Despite some advancements—thanks to former Communications Minister Michelle Rowland—who pushed for enforceable standards for consumers facing financial hardship and domestic violence, the ACMA has yet to address other pressing issues such as poor sales practices and inadequate credit assessments. Documents obtained through FOI requests reveal a regulator that acknowledges ongoing consumer harm but continues to tolerate deficiencies within the TCP Code through inaction.
The TCP Code was submitted for registration to the ACMA on May 19, 2025, following a review that extended over two years. As of three months later, a decision remains pending, leaving consumers without adequate protection mechanisms. This delay reflects a troubling complacency from the ACMA, and many stakeholders are losing faith that the self-regulatory framework will ever meet the standards expected by consumers in contemporary Australian society.
Consumer Protections Must Be Prioritized
While many consumers may celebrate the improved NBN speeds, vulnerable individuals still face significant risks from predatory sales practices and inadequate credit assessments. The current state of the telecommunications sector highlights the urgent need for reform. Advocacy groups stress that without direct regulation, the cycle of consumer exploitation will likely persist.
In summary, the recent speed tier enhancements provided by NBN, while beneficial for some, have only served to deepen existing inequalities in the telco sector. The call for the ACMA to take decisive action and implement direct regulation is imperative for ensuring fair and equitable treatment for all consumers, regardless of their financial circumstances. The time for regulatory reform is now, as the telecommunications landscape continues to evolve in ways that must prioritize consumer rights and protections.
