There will be less rope for telcos found to be treating customers poorly if the government follows through with new reforms promising swift action against a range of 'bad behaviours'.

The Albanese Government is proposing reforms to better protect consumers, including  strengthening the Australian Communication and Media Authority’s (ACMA) compliance and enforcement powers and increasing penalties for breaches. 

Currently, ACMA cannot take direct action against telecommunications companies without first issuing an order to comply. Only if compliance breach continues, then ACMA can take action.  

But under proposed amendments to the Telecommunications Act 1997 , ACMA will be able to take direct and immediate action against telecommunications providers. 

Maximum penalties for breaches of industry code would be increased from $250,000 to $10 million.  

Reforms will also establish a Carriage Service Provider (CSP) registration scheme, to increase the visibility of providers working in the telecommunications market.

It is expected this scheme would empower the ACMA to stop CSPs operating in the market where they’ve been found to have caused significant risk or harm to consumers.  

Luke Coleman, CEO of the Telecommunications Alliance, said the industry welcomes the change.  

“Communications Alliance has consistently called for stronger enforcement powers for the ACMA, and we welcome this announcement to enhance consumer protections in the telecoms industry.  

“Australians expect the highest standards of business behaviour from telcos, and these new direct enforcement powers will ensure they are held to account by the Regulator." 

David Hofierka, Senior Policy Officer at the Consumer Action Law Centre, feels the changes were long overdue.  

"Similar consequences and high penalty amounts are already in place in other sectors that provide essential services such as in energy, water and banking," he said.

"The telco industry has benefited from a very light enforcement regime over the years, which has permitted continued poor practices. 

"The consumer regulator the ACCC commenced court action late last year against Optus for its alleged unconscionable selling of phone products to hundreds of vulnerable customers, even though Telstra was fined $50m for similar conduct years earlier," he said.

"Telecommunications is an essential service. People can’t afford to be mis-sold products, cut-off from their service at a whim, or be treated poorly by their telco provider.

"Telco consumers deserve to be protected by the strongest possible laws and the Government can show its commitment by putting an end to this type of conduct and acting now."  

All interested stakeholders are encouraged to make a submission to the Communications Alliance by 28 February 2025.