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ACMA Reconnect the Customer briefing on draft report

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ACMA Reconnect the Customer briefing on draft report

  1. 1. ACMA public inquiry<br />Release of draft inquiry report<br />
  2. 2. Briefing<br />Purpose of draft report<br />Background for Reconnecting the Customer<br />Evidence and research collected<br />Key findings<br />Proposed solutions<br />Future challenges<br />Briefing pack<br />Next steps<br />
  3. 3. Purpose of draft report<br />Provide the ACMA’s draft findings regarding:<br />Problems – Are there systemic problems with how the Australian telecommunications sector deals with its customers?<br />Causes – If there are problems, what are the causes?<br />Solutions – What are the potential solutions?<br />Future issues – what is best strategy for addressing customer care issues in converging communications environment?<br />Invite submissions and comments<br />
  4. 4. Background<br />Sustained increase in TIO complaints<br />Increasingly industry complexity<br />Prepare for NBN era<br />
  5. 5. Evidence and research<br />135 submissions in response to consultation paper and five public hearings in metropolitan and regional areas <br />Industry data<br />Research about:<br />Consumer experience of customer care <br />Behaviouraleconomics and consumer decision-making<br />Performance metrics<br />Best practice external dispute resolution<br />3G users’ experience<br />
  6. 6. Key findings<br />Advertising & marketing practices confuse consumers about products, especially when comparing value of different plans<br />Many consumers lack sufficient info about products prior to entering contract – contributes to problems such as bill shock<br />No transparency for consumers about relative performance of CSPs regarding customer care quality<br />Consumer difficulty understanding and monitoring charges contributes to bill shock<br />Appropriate consumer safeguards regarding clear and enforceable rules about CSP complaint-handling are lacking<br />TIO scheme not meeting best practice in some areas<br />
  7. 7. Approach to solutions<br />Two key drivers of complaints:<br />Quality of information provided in pre-sale marketing and advertising, and pre-contract phases of product life-cycle<br />Unexpectedly high bills (‘bill shock’)<br />Two key drivers of customer satisfaction:<br />Timely resolution of issues<br />Effective handling of complaints<br />
  8. 8. Proposal 1: Improved advertising practices <br />Objective: Improve marketing and advertising practices by introduction of clear and enforceable rules that apply to all providers. <br />Proposal to achieve objective:<br />Prohibit use of terms known to be confusing for consumers<br />Require providers to publish either<br />an effective unit pricing rate and stated unit pricing rate, or<br />volume of calls, text messages or megabytes a consumer would receive inside and outside included value of plan<br />
  9. 9. Proposal 2: Improved product disclosure <br />Objective: Provide consumers with clear, accurate and comparable information about the key features of products and aspects of a service before entering into a contract.<br />Proposal for achieving objective: Provide consumers with critical information disclosure summary before sale that: <br />summarises critical product information (e.g. term of the contract, exit fees, minimum monthly payment)<br />is available for different types of product<br />Includes non-product specific information (e.g. contact details, how to access complaint processes, consumer tools, etc).<br />
  10. 10. Proposal 3: Performance reporting & customer service charters <br />Objective:Introduce transparency about the relative quality of customer care, especially regarding timeliness.<br />Proposal for achieving objective: <br />Providers with >30,000 res. and small bus. customers publish:<br />total contacts made by existing customers<br />number of repeat contacts made by the same customer within a 45 day period <br />total complaints received<br />total number of residential and small business customers.<br />Providers encouraged to publish customer service charters.<br />
  11. 11. Proposal 4: Expenditure management tools <br />Objective: Equip consumers with the tools to manage their telecommunications expenditure.<br />Proposal for achieving objective: Providers required to offer tools that allow customers to monitor accumulation of charges during a billing period, in real time.<br />For plans with no hard cap or shaping this should provide:<br />equivalent platform-based notification (eg. SMS for phone)<br />consumer-nominated expenditure/usage notification point<br />notification which includes consequences of limitations and unavoidable exclusions.<br />
  12. 12. Proposal 5: Internal complaints-handling <br />Objective: Internal complaints-handling standards that meet ‘best practice’ to be implemented by all service providers.<br />Proposal for achieving objective: Providers required to:<br />adopt definition of complaint from AS ISO 100002-2006<br />comply with principles in AS ISO 100002-2006<br />establish minimum standards for:<br />timeliness in complaints-handling<br />documentation of complaints procedures<br />analysis and reporting of complaints data.<br />
  13. 13. Proposal 6: Changes to TIO scheme<br />Objective: Ensure TIO meets best practice standards for EDR schemes, and consumer protection standards within the sector are enhanced.<br />Proposal for achieving the objective (in context of broader TIO review by DBCDE):<br />TIO regulatory framework and/or governance framework amended to create a unitary governance model<br />consider legislative change to prohibit providers that are not TIO members from operating within sector<br />improve TIO process for dealing with systemic issues.<br />
  14. 14. Future challenges – the ‘next chapter’<br />Proposals intended to: <br />address current problems <br />provide consumer safeguards against future challenges.<br />Final report will specifically address future challenges.<br />Essential to maintain momentum created by Reconnecting the Customer<br />
  15. 15. Briefing pack documents<br />Draft report<br />Summary of proposed solutions (table)<br />Executive summaries of supporting research<br />Fast facts consumer booklet<br />Overview and summary of recommendations<br />
  16. 16. Next steps<br />Further dialogue with industry and consumers<br />Consider submissions<br />Consultation period ends on Friday 15 July 2011<br />Final report expected late August 2011<br />Work program to implement solutions will commence immediately following release of report<br />

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