Australia Rejected Self-Regulation for Telecom Operators

The Australian telco market watchdog, ACMA, rejected self-regulation for telecoms operators. The body decided to replace a consumer protection code with an enforceable industry standard.

ACMA chair Nerida O’Loughlin explained the industry standard will provide stronger protections for consumers, adding recent issues caused by network outages, emergency call unavailability, shortcomings from the 3G shutdown process, and significant issues with responsible selling have further undermined confidence in the telco sector’s commitment to its customers. The agency has started the process to determine an industry standard, which will replace the industry-developed Telecommunications Consumer Protections code.

ACMA’s decision follows an in-depth consultation process started in 2023 by the industry. Under the Telecommunications Act, the sector must be allowed to develop codes of practice before the ACMA can put a standard in place. Both the Australian Communications Consumer Action Network (ACCAN) and the Fair Call Coalition welcomed the move. The ACCAN noted in a statement that the decision acknowledges that the industry-led approach to date has not delivered the safeguards Australians expect from an essential service.

ACCAN CEO Carol Bennett called the decision a watershed moment for the regulation of telecommunications in the country. “I welcome ACMA’s decision to step in following this dysfunctional and long-winded process, to act in the best interests of Australians and heed the voice of the Fair Call Coalition – a collective of consumer and community representatives who stood in lockstep against this flawed code.” The group said it will work with the ACMA, government, industry and community organisations to develop “fit-for-purpose regulatory settings” that address responsible sales, proper affordability checks, clear coverage information and fair disconnection processes.