Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

ACMA Reconnect the Customer briefing on draft report


Published on

Briefing slides

Published in: News & Politics
  • Be the first to comment

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 />