Telco customers—credit management and financial …/media/Research and Analysi… · Web...

Telco customers—credit management and financial hardshipSEPTEMBER 2012

CanberraPurple BuildingBenjamin OfficesChan Street Belconnen ACT

PO Box 78Belconnen ACT 2616

T +61 2 6219 5555F +61 2 6219 5353

MelbourneLevel 44Melbourne Central Tower360 Elizabeth Street Melbourne VIC

PO Box 13112Law Courts Melbourne VIC 8010

T +61 3 9963 6800F +61 3 9963 6899

SydneyLevel 5The Bay Centre65 Pirrama RoadPyrmont NSW

PO Box Q500Queen Victoria BuildingNSW 1230

T +61 2 9334 7700 1800 226 667F +61 2 9334 7799

© Commonwealth of Australia 2012This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be reproduced by any process without prior written permission from the Commonwealth. Requests and enquiries concerning reproduction and rights should be addressed to the Manager, Editorial Services, Australian Communications and Media Authority, PO Box 13112 Law Courts, Melbourne Vic 8010.

Published by the Australian Communications and Media Authority

acma | iii

Executive summary 1Research background 1Objectives and methodology 1Key findings 2Personal telecommunication services 2Bill shock 2Difficulty paying bills 2Contact with the service provider 3Credit management 3Contact with the TIO and independent financial advice 3Use of credit and spend management tools 4

1. Introduction 5Overview 5The need for research 5Research objectives 5Outcomes 6

2. Research methodology 7Overview and rationale of the quantitative methodology 7Statistical reliability of the quantitative results 8Statistical testing of results 9Rounding 9Comparison with relevant studies 10Overview and rationale of the qualitative methodology 10

3. Personal telecommunication services 11Chapter overview 11Introduction 11Telecommunications services 11Telecommunications service providers 14Billing and bundling 15

4. Bill shock 18Chapter overview 18Introduction 18Incidence of bill shock 19Frequency of bill shock 20Amount of bill shock 21

5. Difficulty paying bills 23

acma | iv

Contents (Continued)

Chapter overview 23Introduction 23Incidence of difficulty paying telecommunication bills 23Frequency and time frame 28Services and service providers 31Reasons for difficulty paying bills 34

6. Contact with the service provider 39Introduction 39Customers contacting the service provider 39Timing of the contact 41Bill disputes 42Satisfaction with outcomes of contact 45

7. Credit management 48Introduction 48Extension of bill due date 48Payment plan 50Credit reporting agencies 54Solutions for the future 55Credit management for respondents who did not contact the service

provider 57How to improve experience 57

8. Contact with TIO and independent financial advice 59Introduction 59Contact with the TIO 59Reason for contacting TIO 60Outcome of contacting the TIO 61Independent financial advice 62

9. Use of credit/spend management tools 63Introduction 63Awareness of tools 63Use of tools 66Perceived usefulness of tools 75

Conclusion 77

Appendix A—Quantitative research 78

acma | v

Contents (Continued)

Appendix A1—Quantitative research methodology 79A1.1 Sample structure 79Sample breakdown of respondents, by demographics and characteristics 80

Appendix A2—Quantitative research instruments 83A2.1 Questionnaire design 83A2.2 Questionnaire 83

Appendix B—Qualitative research 116

Appendix B1—Qualitative research methodology 117B1.1 Sample structure 117Rationale for sample 117Recruitment of sample 117B1.2 Discussion guide 117

Appendix B2—Qualitative research instruments 118B2.1 Guidelines for the interviewer 118

vi | acma

Executive summary

Research background In 2010, the Australian Communications and Media Authority (the ACMA) conducted the Reconnecting the Customer public inquiry into customer service and complaints-handling in the telecommunications industry. The inquiry was prompted by the high number of complaints to the Telecommunications Industry Ombudsman (TIO) and the increasing complexity of the telecommunications industry.

The inquiry report, released in September 2011, examined the issues consumers encountered when dealing with their telecommunications provider, including problems and causes. It also looked at issues relating to ‘bill shock’ and ways for carriage service providers (CSPs) to give consumers improved information about plans. However, it did not deal in depth with issues of credit management.

In March 2012, the ACMA commissioned Roy Morgan Research to undertake this national study to further investigate the current incidence and nature of unexpectedly high bills, difficulty paying bills and use of spend management tools and payment arrangements among telecommunications bill-payers.

This study builds on earlier ACMA research that examined the dimensions of mobile phone ‘bill shock’ and takes a closer look at consumers’ experience with credit management and financial hardship arrangements in telecommunications.

The current research provides a point of reference for understanding the extent of unexpectedly high bills and credit management issues in telecommunications, before new provisions of the Telecommunications Consumer Protection (TCP) Code come into force in September 2012. This work will help to assess how effectively the new code provisions deal with telecommunications credit management practices.

Objectives and methodologyThe main objective of the research was to provide the ACMA with an understanding of:> the nature of financial hardship and payment arrangements that may be in place

between personal (that is, non-business) customers and their CSP> why such arrangements are required> whether other customers would benefit from these arrangements if they were

aware of or offered them.

The findings from the study will inform the ACMA’s approach to compliance activities relating to the relevant provisions of the TCP Code.

There were two phases to the research:> a quantitative stage surveying a national representative sample of 2,400 Australian

telecommunications bill-payers> a qualitative stage comprising 20 in-depth interviews (IDIs).

In line with the main objective of the research, the study covered customers of telecommunication products for personal use only, excluding business customers.

acma | 1

http://www.acma.gov.au/WEB/STANDARD/pc=PC_312222

Key findingsPersonal telecommunication services> Three-quarters of Australian bill-payers pay for a fixed-line telephone (77 per cent).> Nine in 10 bill-payers (91 per cent) pay for a mobile service, with:

> 56 per cent paying for only a post-paid service> 21 per cent paying for only a pre-paid service> 14 per cent paying for both post-paid and pre-paid services

> Over half of those with a mobile phone have a smartphone (58 per cent).> Two-thirds (68 per cent) of bill-payers have at least one telecommunications

service provided by Telstra.> Two-thirds (68 per cent) of people have bundled telecommunications services.> Seven in 10 (71 per cent) people receive a single bill covering multiple

telecommunications services.> The most common service on a single bill is a fixed-line telephone (92 per cent).

Bill shock> ‘Bill shock’ is a colloquial term used to describe unexpectedly high bills.> The incidence of bill shock is similar for pre-paid and post-paid services—for those

who received an unexpectedly high bill or ran out of credit sooner than expected at least once in the last 12 months.

> Those aged 18–24 years are the most likely to experience bill shock on a post-paid service (43 per cent), while those aged 25–34 years are the most likely to experience bill shock on a pre-paid service (40 per cent).

> Those over the age of 55 years are significantly less likely to experience bill shock (23 per cent pre-paid, 24 per cent post-paid).

> Those with pre-paid services experience bill shock more frequently than those with post-paid services.

> A quarter of those post-paid customers who experienced bill shock said they received a bill that was $200 or more over the usual amount.

> The average amount of unexpectedly high bills is $169 over the usual amount.

Difficulty paying bills> Consumers may experience difficulty paying bills for a wide range of reasons,

which may include bill shock but can often be attributed to other circumstances.> 14 per cent of Australian bill-payers have experienced some difficulty paying their

telecommunication bills in the last 12 months.> Those aged 18–24 years are significantly more likely to experience difficulty paying

telecommunication bills (22 per cent), while those aged 55 years or more are significantly less likely (seven per cent).

> Post-paid bill payers who experienced bill shock are more likely to have difficulty in paying telecommunication bills (30 per cent) compared to five per cent of those that had not experienced bill shock.

> In the last year, 24 per cent of those who reported difficulty paying bills experienced this only once, 18 per cent twice, 16 per cent three times, 12 per cent four times and 18 per cent more than five times.

> 47 per cent of respondents indicated bill shock as a reason for difficulty paying a telecommunication bill.

2 | acma

> For those who had difficulty paying bills, 57 per cent of bill-payers reported post-paid mobile phones as the relevant service, 49 per cent fixed landlines and 31 per cent ADSL/ADSL2/ADSL2+ broadband connection.

Contact with the service provider> Three in five (59 per cent) bill-payers who experienced bill shock or had difficulty

paying bills contacted their service provider to discuss this issue.> The majority (85 per cent) of these respondents contacted their service provider at

the time they received a bill they had difficulty paying.> Two-thirds (64 per cent) of bill-payers who experienced bill shock disputed the

amount of the debt or bill with their service provider.> A quarter (25 per cent) of bill-payers who contacted their service provider were

satisfied with the quick resolution of their issue.> A quarter (23 per cent) of bill-payers who contacted their service provider were not

satisfied, with staff not understanding their problem or being empathetic.> Three in five (65 per cent) bill-payers who contacted their service provider due to

bill shock or difficulty paying their bill were asked to pay a reduced amount.> Two-thirds (64 per cent) of bill-payers who contacted their service provider due to

bill shock or difficulty paying their bill were satisfied with the outcome.

Credit management> One-third of the respondents (33 per cent) who contacted their service provider

asked for an extension on the bill’s due date.> 81 per cent of those asking for an extension said there was no negotiation on the

extension date. Payment plans were generally similar, with:> two-thirds of those offered an extended payment plan were given less than a

month to make a payment (67 per cent)> nine in 10 involving instalment payment amounts below $200, with 29 per

cent between $100 and $199.> Only 14 per cent reported service restrictions and eight per cent service

suspensions while on the payment plan.> Only three per cent of those who experienced difficulty paying bills had their debts

listed with a credit reporting agency.> Only one in three (29 per cent) people who contacted their service provider due to

payment difficulty or bill shock were offered advice about avoiding such situations in the future.

> A third (34 per cent) of bill-payers who negotiated a payment arrangement with their service provider were happy with the arrangement or felt that nothing more was needed to improve their experience of the payment arrangement.

Contact with the TIO and independent financial advice> A small group (four per cent) of bill-payers who experienced bill shock or difficulty

paying bills contacted the TIO.> Eight bill payers who had trouble paying for their bills sought independent financial

advice.

acma | 3

Use of credit and spend management tools> A quarter (26 per cent) of bill-payers who experienced bill shock or difficulty paying

bills in the last year were aware of spend and credit management tools before receiving an unexpectedly high bill or a bill that they had difficulty paying.

> A quarter (25 per cent) of respondents who had not experienced bill shock or difficulty paying bills were aware of spend management tools.

> An online usage meter is the most popular tool (32 per cent of respondents reported using such a tool), followed by SMS alerts (22 per cent) and email alerts and service providers application (both 11 per cent).

> 88 per cent of bill-payers who use at least one credit/spend management tool consider the tools to be useful.

4 | acma

1. IntroductionChapter 1 describes the motivation for the research and its objectives.

OverviewDifficulty paying telecommunications bills is a major issue for consumers. According to the TIO, nine per cent of telecommunications complaints are about credit management, and 17 per cent are about billing and payments more generally. In 2008–09, Telstra’s Bill Assistance Program helped over 30,000 people in financial difficulties, with that number increasing by 33 per cent in 2010. In research conducted by Colmar Brunton for the Low Income Measures Assessment Committee (LIMAC) in 2010, 18 per cent of the community agencies interviewed said telecommunication bills are a major reason why their clients seek emergency relief.

Difficulty paying bills is not always due to general financial difficulties or hardship, but can also be related to bill shock, where the bill for a particular month is unexpectedly high. This issue, while less severe than difficulties due to long-term financial hardship, is a far more common occurrence. ACMA research from June 2011 with 3G mobile bill-payers found that half of those on a post-paid account had received at least one unexpectedly large bill on their current or previous 3G plan. Similarly, 44 per cent of pre-paid users reported running out of credit faster than expected at least once in the last 12 months.

The need for researchThe ACMA’s study into credit management and financial hardship among telecommunications customers was intended to provide information on the current incidence of unexpectedly high bills, difficulty paying telecommunication bills and payment arrangements.

The aim of this national study was to provide the ACMA with an understanding of the nature of financial hardship and payment arrangements that may be in place between personal (non-business) customers and their CSP, why such arrangements were required and whether other customers would have benefited from either of these arrangements had they been aware of or offered them.

Research objectivesThe objectives of the research were to increase the ACMA’s understanding of:> the incidence of unexpectedly high bills> the number and proportion of consumers who have difficulty paying

telecommunication bills> the kinds of consumers who have difficulty paying their telecommunication bill and

the services most likely to be involved> the reasons consumers have difficulty paying their telecommunication bills> how consumers who had difficulty paying their bill dealt with the situation (including

contact with the service provider and the TIO)> the proportion of consumers who had difficulty paying their bill who entered into a

payment or other arrangement with their service provider> consumers’ use of spend management tools.

acma | 5

OutcomesThe major findings from the research are:> 14 per cent of Australian bill-payers experienced some difficulty paying one or

more telecommunication bills in the past 12 months.> Nearly half (47 per cent) named bill shock as one of the main triggers for difficulty

paying a bill.> 69 per cent of consumers who contacted their service provider about payment

difficulty or bill shock were not offered advice about how to avoid such situations in the future.

These findings have confirmed the need to make financial hardship and its causes a focus of the ACMA’s compliance activity for the new TCP Code.

6 | acma

2. Research methodologyChapter 2 describes the two phases of the research conducted, focusing on the methodology.

The study comprised a main quantitative stage surveying a national representative sample of Australian telecommunications bill–payers. This was followed by a qualitative stage comprising in-depth interviews with respondents selected through the quantitative study, based on their experience as telecommunication bill-payers. The in-depth interviews provide case studies to illustrate and expand on the survey results.

Overview and rationale of the quantitative methodologyThe main objective of the quantitative phase was to obtain robust estimates of bill-payers’ experiences of bill shock, difficulty paying telecommunication bills and payment arrangements.

The population of interest was bill-payers for personal (non-business) telecommunication services. Services included mobile phones, fixed phone or fax landlines, cable broadband connection, ADSL, ADSL2 or ADSL2+ broadband connection, dial-up internet connection, mobile broadband connection and internet or VoIP (voice over internet protocol) phone, both pre-paid and post-paid. Of particular interest were those who experienced difficulty paying a bill, either due to bill shock or financial hardship. All participants were aged 18 years or older.

Fixed-line households were recruited through random digit dialling (RDD). The sample design also considered the increasing proportion of the population that does not have a fixed-line phone by separately recruiting a sample of mobile phone-only users from the Roy Morgan Single Source database.1

A total of 2,407 computer-assisted telephone interviews (CATI surveys) were conducted. This number comprised two sub-samples as mentioned previously—respondents with a fixed-line home phone connected (n=2,005) sourced through RDD and respondents who had only a mobile phone (that is, had a mobile phone and no fixed-line phone connected in the home) (n=402) sourced through re-contact of respondents from the Roy Morgan Single Source database.

All interviews were conducted on weekday evenings (5.00 pm to 8.30 pm) or on weekends (11.00 am to 4.00 pm) from 8 to 25 May 2012, preceded by a pilot of 50 interviews. Quotas were set for both samples so that their demographic profile (age, sex and area) was representative of the population of Australian telecommunications bill-payers aged 18 years and over. This included both fixed-line home phone and households with a mobile phone only, as determined by the latest Roy Morgan Single Source data.

Proportional weights were applied to the data to reflect the true distribution of these customers. These were an interlocking weight of area by sex, area by age and area by region (metro/country), and a rim weight for the sample type (respondents with fixed landline and with mobile phones only). The weights used were calculated from the latest Roy Morgan Single Source data.

A total of 290 respondents had experienced difficulty paying a telecommunication bill and were asked questions about their experience. The incidence of financial hardship

1 Every year, Roy Morgan Research conducts over 50,000 face-to-face interviews in Australia. This forms the basis of Single Source. Approximately 40 per cent also return additional self-completion diaries, the Product Poll and Media Diary.

acma | 7

reported in this study is an approximation of true incidence based on information obtained from the sample.

The survey focused on bill-payers who experienced difficulty paying bills in the last 12 months. If respondents had experienced difficulty paying bills more than once in the last 12 months, the focus was on the most recent episode.

Final survey results can be generalised to the Australian population of telecommunication bill-payers, aged 18 and older with telecommunication access (home or mobile phone). Total survey respondents are referred to as the population throughout this report.

Refer to Appendix A for further details of the quantitative methodology and instruments used.

Statistical reliability of the quantitative resultsThe estimates derived for this study are based on information obtained from a sample survey and are therefore subject to sampling variability. They may differ from results that would be obtained if all people in Australia were interviewed (a census) or if the survey was repeated with a different sample of respondents.

One measure of the likelihood of any difference is the standard error (SE), which shows the extent to which an estimate might vary by chance because only a sample of people were interviewed. An alternative way of showing this is the relative standard error (RSE), which is the SE as a percentage of the estimate.

Table 1 shows the SE for various sample sizes and response levels, and can be used to assess if there are statistically significant differences between results within the study. For example:> If the sample size was 1,250, a response set of 50 per cent has a SE of +/-2.8 per

cent at a 95 per cent confidence level (that is, there are 95 chances in 100 that a repeat survey would produce a response set of between 52.8 and 47.2 per cent).

> If there were 500 respondents (n=500) to a question and 50 per cent gave a particular response, then the SE for that response is +/–4.4 per cent.

Where the RSE is between 30 and 49 per cent, results should be regarded as moderately reliable. Where the RSE is 50 per cent or higher, results should be regarded as indicative estimates only.

8 | acma

Table 1 Standard error for various sample sizes

Total sample and sub-setsSurvey

estimate 2,400 2,250 2,000 1,750 1,500 1,250 1,000 750 500 300

Sample variance (+/–) 95% confidence intervals% % % % % % % % % %

10% 1.2 1.2 1.3 1.4 1.5 1.7 1.9 2.1 2.6 3.4

20% 1.6 1.7 1.8 1.9 2.0 2.2 2.5 2.9 3.5 4.5

30% 1.8 1.9 2.0 2.1 2.3 2.5 2.8 3.3 4.0 5.2

40% 1.9 2.0 2.1 2.3 2.5 2.7 3.0 3.5 4.3 5.5

50% 2.0 2.1 2.2 2.3 2.5 2.8 3.1 3.6 4.4 5.6

60% 1.9 2.0 2.1 2.3 2.5 2.7 3.0 3.5 4.3 5.5

70% 1.8 1.9 2.0 2.1 2.3 2.5 2.8 3.3 4.0 5.2

80% 1.6 1.7 1.8 1.9 2.0 2.2 2.5 2.9 3.5 4.5

90% 1.2 1.2 1.3 1.4 1.5 1.7 1.9 2.1 2.6 3.4

For results based on the total study sample of 2,407, this sample size constrains the maximum sampling error to +/–2 per cent. When reporting on the 290 who had difficulties paying their telecommunications bills, this sample size constrains the maximum sampling error to approximately +/–5.6 per cent.

Statistical testing of resultsSignificance testing at the 95 per cent confidence level has been applied to quantitative findings from the survey research. Specifically, significance testing throughout this report has been used to compare whether there is a reliable difference unlikely to be due to chance between each individual group or segment and the total group (for example, gender, age, income). If a total group was not applicable to a figure or table in the report, significance testing is not shown.

The following colour coding and font style has been used to indicate the presence and direction of a significant difference:> figures in red and bold are significantly lower than the total group at a 95 per cent

confidence level> figures in green and italic are significantly higher than the total group at a 95 per

cent confidence level.

In some cases, the report discusses differences that are not statistically significant where they appear interesting or counterintuitive, or where there are patterns of small differences worth noting.

RoundingThe reader may notice some discrepancies between the sums of the component items and totals. This may occur due to the effects of rounding.

acma | 9

Comparison with relevant studiesWhen relevant, the findings of this study have been compared to the results of the 3G mobile bill-payers’ understanding of billing and charging arrangements report, commissioned by the ACMA and published in June 2011.

This quantitative study investigated the level and nature of concerns experienced by 3G users in their understanding of charging arrangements. A sample of n=1,069 respondents were surveyed using a CATI methodology.

Overview and rationale of the qualitative methodologyThe prime objective of the qualitative stage was to provide depth and richness to the reporting of the quantitative results, as well as further understanding of the reasons consumers have difficulty paying telecommunication bills and pathways to credit management arrangements.

The qualitative research consisted of 20 in-depth interviews (IDIs) with telecommunications bill-payers who experienced difficulty paying a bill in the last 12 months. The respondents were recruited through the quantitative survey.

The IDIs were conducted between 30 May and 7 June 2012. The respondents were selected to ensure a representative cross-section of bill-payer demographics in terms of age and gender.

Of the 20 IDIs, 13 comprised respondents who indicated bill shock as the cause for encountering difficulty in paying bills. The remaining seven were with people who had difficulty paying bills due to other reasons. Of those 13 respondents who faced bill shock, seven indicated that this was due to a higher use of the service. One of the interviews included a respondent who contacted the TIO to discuss this issue.

Quotations from the qualitative sessions are interspersed through the report to illustrate or expand on some of the points made by the survey findings.

Please refer to Appendix B for further details of the qualitative methodology and instruments used.

10 | acma

3. Personal telecommunication services

Chapter overview> Three-quarters of Australian bill-payers pay for a fixed-line telephone (77 per cent).> Nine in 10 bill-payers (91 per cent) pay for a mobile service, with:

> 56 per cent paying for only a post-paid service> 21 per cent paying for only a pre-paid service> 14 per cent paying for both post-paid and pre-paid services.

> Over half of those with a mobile phone have a smartphone (58 per cent).> Those aged 18–24 years are significantly more likely to have a smartphone (86 per cent).> Two-thirds (68 per cent) of bill-payers have at least one telecommunications service provided by Telstra.> Two-thirds (68 per cent) of people have bundled telecommunications services:

> significantly fewer people aged 18–24 years have bundles (51 per cent)> bundling is most common among those aged 35–54 years (73 per cent)> the most commonly bundled service is a fixed-line telephone (93 per cent).

> Seven in 10 (71 per cent) people receive a single bill covering multiple telecommunications services:> significantly fewer people aged 18–24 years receive a single bill (56 per cent)> receiving a single bill is the most common among those aged 35–54 (75 per cent)> the most common service on a single bill is a fixed-line telephone (92 per cent).

IntroductionChapter 3 provides information from 2,407 respondents about the types of telecommunications products paid for, and information about those services such as service provider and the use of bundling and single bills for multiple services.

Telecommunications servicesAbout three-quarters of Australian bill-payers pay for a fixed-line telephone (77 per cent), with a similar proportion paying for a post-paid mobile phone (71 per cent). Nine in 10 bill-payers (91 per cent) pay for a mobile service—56 per cent pay for only a post-paid service, 21 per cent pay for only a pre-paid service, and 14 per cent pay for both post-paid and pre-paid services.

acma | 11

Figure 1 Communications services paid for

3

9

22

25

35

48

71

77

0 20 40 60 80 100

A dial-up internet line or account

An internet or VoIP phone

Mobile broadband (e.g., 3G modem) or tablet (e.g., iPad)

A cable broadband connection

A pre-paid mobile phone

An ADSL or ADSL2 or ADSL2+ broadband connection

A post-paid mobile phone or a mobile phone on a plan

A fixed-line phone or landline or fax line

%

In total, 78 per cent of bill-payers reported paying a bill for some broadband internet service, including ADSL/ADSL2/ADSL2+, cable and mobile broadband connections.

A significantly higher proportion of those under the age of 35 pay for a post-paid mobile service but no pre-paid service (73 per cent of those aged 18–24, 66 per cent of those aged 25–34), while significantly more people aged 55 and over (25 per cent) only pay for a pre-paid service.

Figure 2 Mobile telephone services paid for

56

21

14

9

Post-paid only

Pre-paid only

Both post-paid and pre-paid

Neither

Q1. Do you currently pay for any of the following telecommunications services, either for yourself or some other person or for the household?Base: Bill-payers (n=2,407).

12 | acma

Figure 3 Mobile telephone services paid for—by age

73

66

5247

18 2019

25

611

23

11

33

6

17

0

10

20

30

40

50

60

70

80

18–24 25–34 35–54 55+

%

Post-paid only Pre-paid only Both post-paid and pre-paid Neither

Q1. Do you currently pay for any of the following telecommunications services, either for yourself or some other person or for the household?S4. What is your age?Base: Bill-payers aged 18–24 (n=158), 25–34 (n=378), 35–54 (n=921), 55+ (n=950).

Over half of those with a mobile phone have a smartphone (58 per cent).

Younger people are significantly more likely to have a smartphone—most (86 per cent) mobile phone bill-payers aged 18–24 years have a smartphone, compared with just a third (32 per cent) of those aged 55 years or over.

Figure 4 Smartphone ownership

58%

41%

1%

Smartphone

Standard mobile phone

Don't know

Q2a. Is your current mobile phone a smartphone?Base: Mobile phone bill-payers (n=2,177).

acma | 13

Figure 5 Smartphone ownership—by age

8666

58

32

1426

41

67

0

20

40

60

80

100

18–24 25–34 35–54 55+

%

Smartphone Standard mobile phone

Q2a. Is your current mobile phone a smartphone?S4. What is your age?Base: Mobile phone bill-payers aged 18–24 (n=155), 25–34 (n=365), 35–54 (n=764), 55+ (n=793).

Telecommunications service providersTelstra is the most common service provider for all telecommunications services. Two-thirds (68 per cent) of bill-payers have at least one telecommunications service provided by Telstra.

Table 2 Telecommunications service providers—by service type

Fixed-line telephoneTelstra 69%

Optus 16%

Mobile telephoneTelstra 45%

Optus 25%

Vodafone 17%

Virgin 5%

3 3%

Mobile broadbandTelstra BigPond 54%

OPTUSnet 17%

Vodafone 11%

3 5%

Virgin 4%

Cable broadbandTelstra BigPond 49%

OPTUSnet 28%

ADSL broadbandTelstra BigPond 52%

OPTUSnet 12%

TPG Internet 7%

iiNet 6%

14 | acma

Internode 4%

Dial-up internet connectionTelstra BigPond 43%

OPTUSnet 17%

Voice over IP (VoIP)Telstra/Telstra BigPond 26%

Skype 20%

Other 13%

iiNet 10%

Optus 9%

Billing and bundlingTwo-thirds (68 per cent) of people have bundled telecommunications services. Bundling is significantly less common among those under 25, with half (51 per cent) of bill-payers aged 18–24 years having a bundle. Bundling is the most common among those aged 35–54 years, at 73 per cent.

Figure 6 Bundling

68%31%

2%

Have bundle

Do not have bundle

Don't know

Q5. Are any of these services part of a ‘bundle’ from one service provider?Base: Bill-payers with more than one telecommunication service (n=1,874).

Figure 7 Bundling—by age

51

66 7365

46

30 27 32

0

20

40

60

80

18–24 25–34 35–54 55+

%

Have bundle Do not have bundle

acma | 15

Q5. Are any of these services part of a ‘bundle’ from one service provider?S4. What is your age?Base: Bill-payers with more than one telecommunication service aged 18–24 (n=78), 25–34 (n=291), 35–54 (n=799), 55+ (n=706).

Seven in 10 (71 per cent) people receive a single bill covering multiple telecommunications services. Receiving a single bill is significantly less common among those under 25, with just over half (56 per cent) of bill-payers aged 18–24 years receiving a single bill for multiple services. Receiving a single bill is most common among those aged 35 years or older.

Figure 8 Single bill

71%28%

1%

Receive single bill for multiple services

Do not receive single bill for multiple services

Don't know

Q7. Do you receive a ‘single bill’ which includes more than one of these services on that single bill?Base: Bill-payers with more than one telecommunication service (n=1,874).

Figure 9 Single bill—by age

5666

75 74

4332

24 25

0

20

40

60

80

18–24 25–34 35–54 55+

%

Receive single bill for multiple services Do not receive single bill for multiple services

Q7. Do you receive a ‘single bill’ which includes more than one of these services on that single bill?S4. What is your age?Base: Bill-payers with more than one telecommunication service aged 18–24 (n=78), 25–34 (n=291), 35–54 (n=799), 55+ (n=706).

The most commonly bundled service is fixed-line telephone (93 per cent), followed by ADSL broadband (61 per cent). Similarly, the most common service on a single bill is fixed-line telephone (92 per cent), followed by ADSL internet (60 per cent).

Figure 10 Services bundled and on single bill

16 | acma

0 20 40 60 80 100

Dial-up internet line or account

VoIP or internet phone

Pay TV

Mobile broadband or tablet

Cable broadband connection

Post-paid mobile phone/mobile phone on a plan

ADSL or ADSL2 or ADSL2+ broadband connection

Fixed-line phone or landline or fax line

%

Bundle Single bill

Q6. Which ones? (Bundled)Q8. Which ones? (Single bill)Base: Bill payers who have a bundle (n=1,256), bill payers who receive a single bill for multiple services (n=1,337)

acma | 17

4. Bill shock

Chapter overview> The occurrence of bill shock is similar in pre-paid and post-paid services:

> a third (33 per cent) of those with pre-paid services have run out of credit sooner than expected in the last 12 months

> a third (34 per cent) of those with post-paid mobile services have received a higher than expected bill in the last 12 months.

> Of all the respondents who received an unexpectedly high bill at least once in the last 12 months, those aged 18–24 years were the most likely to experience bill shock on a post-paid service (43 per cent).

> Of all the respondents who reported having run out of credit sooner than expected at least once in the last 12 months, those aged 25–34 years were the most likely to experience bill shock on a pre-paid service (40 per cent).

> Of all the respondents who reported having experienced bill shock at least once in the last 12 months, those over the age of 55 years were significantly less likely to experience bill shock (23 per cent pre-paid, 24 per cent post-paid) than all other respondents.

> Those with pre-paid services experience bill shock more often than those with post-paid services. Mean number of times bill shock has been experienced is:> 4.5 for pre-paid services in the last 12 months> 3.0 for post-paid services in the last 12 months.

> A quarter of those with post-paid services who experienced bill shock received a bill that was $200 or more over the usual amount.

> The average amount of unexpectedly high bills is $169 over the usual amount.> Amount of bill shock varies with age. Average amount of bill shock over the usual bill amount is:

> $138 among those aged over 55 years> $186 among those aged 35–54 years> $178 among those aged 25–34 years> $164 among those aged 18–24 years.

IntroductionBill shock is a colloquial term used widely by the Australian media to describe consumers’ experiences when they receive unexpectedly high bills for telecommunications services and utilities. The term was used extensively in the ACMA’s Reconnecting the Customer inquiry report.

This chapter looks at the incidence of telecommunications bill shock in both pre-paid and post-paid services in the last 12 months, as well as how commonly bill shock occurs. It also looks at the dollar amount of unexpectedly high bills for post-paid services. (For pre-paid services, bill shock is defined as running out of credit sooner than expected. For post-paid services, bill shock is receiving an unexpectedly high bill.)

While the ACMA has previously undertaken some research into the incidence of bill shock, the research was confined to 3G mobile users and did not explore the causality between bill shock and difficulty paying bills.

18 | acma

http://agencysearch.australia.gov.au/search/click.cgi?rank=8&collection=agencies&url=http%3A%2F%2Fwww.acma.gov.au%2Fwebwr%2F_assets%2Fmain%2Flib310013%2F3g_bill-payers_report.pdf&index_url=http%3A%2F%2Fwww.acma.gov.au%2Fwebwr%2F_assets%2Fmain%2Flib310013%252

Incidence of bill shockSimilar proportions of customers with pre-paid or post-paid mobile telephone services have experienced bill shock. A third (33 per cent) of pre-paid customers have run out of credit sooner than expected and a similar proportion of post-paid customers (34 per cent) have received a higher than expected bill in the last 12 months.

Those over the age of 55 years are significantly less likely to experience bill shock, either on a pre-paid (23 per cent) or a post-paid (24 per cent) service. Those aged 18–24 years are the most likely to experience bill shock on a post-paid service, with 43 per cent doing so in the past 12 months. Those aged 25–34 years are the most likely to experience bill shock on a pre-paid service (40 per cent) in the last 12 months.

Later chapters of this report focus on those who have experienced difficulty paying for a post-paid service.

Figure 11 Incidence of bill shock

Pre-paid Post-paid

66%

33%

1%

Have not run out of credit sooner than expectedRun out of credit sooner than expectedDon't know

66%

34%

0%

Have not experienced bill shock

Have experienced bill shock

Don't know

Q9. In the last 12 months, have you ever run out of credit sooner than expected on a pre-paid service?Q10. In the last 12 months, have you received a bill that was higher than you expected?Base: Bill-payers with pre-paid services (n=965), bill-payers with post-paid services (n=2,286).

acma | 19

4036

23

3735

24

3943

0

10

20

30

40

50

18–24 25–34 35–54 55+

%

Pre-paid Post-paid

Figure 12 Incidence of bill shock—by age

Q9. In the last 12 months, have you ever run out of credit sooner than expected on a pre-paid service?Q10. In the last 12 months, have you received a bill that was higher than you expected?S4. What is your age?Base: Bill-payers with pre-paid services aged 18–24 (n=54), 25–34 (n=142), 35–54 (n=408), 55+ (n=361); bill-payers with post-paid services aged 18–24 (n=135), 25–34 (n=346), 35–54 (n=884), 55+ (n=921).

Frequency of bill shockThose with pre-paid services experience bill shock more often than those with post-paid services—in the last 12 months, an average of 4.5 for pre-paid services compared with 3.0 for post-paid services. Similarly, 13 per cent of those who had experienced bill shock on pre-paid did so10 times or more in the last 12 months, compared with six per cent of post-paid.

Significantly fewer people in metropolitan areas have experienced bill shock on a pre-paid service more than 10 times—eight per cent compared with 20 per cent of those in regional areas.

Figure 13 Frequency of bill shock

Pre-paidMean=4.5

Post-paidMean=3.0

18.6

25.3

12.9

7.9

6.4

10.1

13.2

5.3

0 5 10 15 20 25 30

Once

Twice

Three times

Four times

Five times

6–9 times

10 times or more

Don't know

31.6

25.5

17.5

8.2

3.3

4.6

6.2

3.1

0 10 20 30 40

Once

Twice

Three times

Four times

Five times

6–9 times

10 times or more

Don't know

20 | acma

Q10a. How many times have you run out of credit sooner than expected in the last 12 months?Q10b. How many times have you received an unexpectedly high bill in the last 12 months?Base: Bill-payers with pre-paid services who ran out of credit sooner than expected (n=319), bill-payers with post-paid services who experienced bill shock (n=730).

Figure 14 Mean frequency of bill shock—by age

4.15.3 4.7

3.42.6 2.8 3.2 3.1

0

2

4

6

8

10

18–24 25–34 35–54 55+Pre-paid Post-paid

Q10a. How many times have you run out of credit sooner than expected in the last 12 months?Q10b. How many times have you received an unexpectedly high bill in the last 12 months?Base: Bill-payers with pre-paid services who ran out of credit sooner than expected aged 18–24 (n=18), 25–34 (n=61), 35–54 (n=155), 55+ (n=85); bill-payers with post-paid services who experienced bill shock aged 18–24 (n=59), 25–34 (n=136), 35–54 (n=319), 55+ (n=216).

Amount of bill shockJust under half (40 per cent) of the most recent unexpectedly high bills received were up to $50 more than usual, with a quarter (26 per cent) $30–$50 more than usual. However, a relatively large proportion received an extremely large bill, with 26 per cent saying it was $200 or more over the normal bill amount. The average amount of unexpectedly high bills is $169 over the usual amount.

Those aged 55 and over who experienced bill shock received bills that were not as high as those received by younger people. The average amount of bill shock among those aged 55 and over is $138, compared with $186 among those aged 35–54, $178 among those aged 25–34 and $164 among those aged 18–24.

Figure 15 Amount of post-paid bill shock

14.3

26.1

14.617.6

14.9

10.8

1.8

0

10

20

30

Less than $30 $30–$50 $51–$99 $100–$199 $200–$499 Over $500 Can't say

%

acma | 21

Figure 16 Amount of post-paid bill shock—by age

TotalMean=$170

18–24Mean=$164

25–34Mean=$178

35–54Mean=$186

55+Mean=$138

Less than $30

$30–50

$51–99

$100–$199

$200–$499

Over $500

Can’t say

14

26

15

18

15

11

2

20

23

18

15

13

12

0

13

22

19

20

14

12

2

9

28

12

20

19

11

1

21

30

11

13

12

8

5

Q10c. Thinking about the last time you received an unexpectedly high bill, approximately how much higher than expected was this bill?Base: Bill-payers with post-paid services who experienced bill shock aged 18–24 (n=59), 25–34 (n=136), 35–54 (n=319), 55+ (n=216).

22 | acma

5. Difficulty paying bills

Chapter overview> 14 per cent of Australian bill-payers have experienced some difficulty paying their telecommunication bills

in the last 12 months.> Those aged 18–24 years are significantly more likely to experience difficulty paying telecommunication

bills (22 per cent), while those aged over 55 years are significantly less likely (seven per cent).> Bill-payers who experienced bill shock are more likely to have difficulty paying (30 per cent).> In the last year, 59 per cent of those who experienced difficulty paying a bill faced this issue three times

or less, 23 per cent more than four times, and 10 per cent more than five times.> For 47 per cent of respondents, bill shock was a reason for difficulty paying a telecommunication bill. On

average, the amount of bill shock was $225 higher than usual or than expected.> 57 per cent of bill-payers who had difficulty paying bills identified post-paid mobile phones as the service

responsible, followed by fixed landlines (49 per cent) and ADSL/ADSL2/ADSL2+ broadband connection (31 per cent).

> Telstra or Bigpond was involved in 58 per cent of cases, followed by Optus (23 per cent) and Vodafone (five per cent).

IntroductionThis chapter presents the incidence of difficulty paying telecommunication bills in the last 12 months among Australian telecommunications bill payers, and specifically among those who pay for post-paid services. It analyses the incidence and frequency of difficulty paying telecommunication bills, the reasons for having problems and the services and service providers involved.

Consumers can have difficulty paying telecommunication bills for a variety of reasons. These can range from long-term financial hardship resulting from low income, to isolated incidences of difficulty caused by one-off events such as job loss, an unexpectedly high bill or the coincidence of a number of financial commitments at one time.

Not all consumers who experience bill shock necessarily have difficulty paying bills. Accordingly, the ACMA considered it important to understand the incidence of consumers having difficulty paying bills and the extent to which bill shock contributes to this experience. The report improves the ACMA’s understanding of consumer behaviour and industry practices so to inform our approach to enforcing the revised TCP Code.

Incidence of difficulty paying telecommunication billsApproximately one in seven post-paid bill-payers (14 per cent) has experienced some sort of difficulties in paying their telecommunication bills in the last year. Of these, the largest group (38 per cent) were aged between 35 and 54 years (see Figure 17). To a large extent, this is because the largest number of telecommunication bill-payers (40 per cent) belongs to this group.

acma | 23

Figure 17 Post-paid bill-payers who had difficulty paying a telecommunication bill—age breakdown

14%

86%

Had difficulty paying bills No difficulty paying bills

Q11. When you received your most recent unexpectedly high bill, did you have difficulty in paying it in full by the due date?Q12. Not including the most recent unexpectedly high bill, in the last 12 months have you had difficulty in paying a telecommunications bill?Q13. In the last 12 months have you had difficulty in paying a telecommunication bill?Base: Bill-payers for post-paid services (n=2,286); aged 18–24 (n=158); 25–34 (n=378); 35–54 (n=921); 55+ (n=950).

Younger people were more likely to encounter difficulty in paying telecommunication bills; in particular, those aged 18–24. Older people aged over 55 years are significantly less likely, as shown in Figure 18.

Figure 18 Post-paid bill-payers who had difficulty paying a telecommunication bill—by age

14

22

1715

7

0

5

10

15

20

25

TOTAL 18–24 25–34 35–54 55+

Q11. When you received your most recent unexpectedly high bill, did you have difficulty in paying it in full by the due date?Q12. Not including the most recent unexpectedly high bill, in the last 12 months have you had difficulty in paying a telecommunications bill?Q13. In the last 12 months have you had difficulty in paying a telecommunication bill?Base: Bill-payers for post-paid services (n=2,286); aged 18–24 (n=158); 25–34 (n=378); 35–54 (n=921); 55+ (n=950).

This can be explained by the fact that younger people generally have less available income than older age groups, but also because younger people—particularly those aged 18–24—are more likely to receive unexpectedly high bills (see Chapter 4). As

24 | acma

18–2421%

25–3425%

35–5438%

55+16%

shown in Figure 19, 74 per cent of post-paid bill-payers who experienced difficulties paying their telecommunication bills also received an unexpectedly high bill in the last 12 months.

Figure 19 Post-paid bill-payers who had difficulty paying a telecommunication bill—bill shock breakdown

14%

86%

Had difficulty paying bills No difficulty paying bills

Q11. When you received your most recent unexpectedly high bill, did you have difficulty in paying it in full by the due date?Q12. Not including the most recent unexpectedly high bill, in the last 12 months have you had difficulty in paying a telecommunications bill?Q13. In the last 12 months have you had difficulty in paying a telecommunication bill?Base: Bill-payers for post-paid services (n=2,286).

As shown in Figure 20, bill-payers who have experienced bill shock are significantly more likely to have difficulties paying telecommunication bills, with nearly a third of post-paid bill-payers (30 per cent) who received an unexpectedly high bill facing this type of financial issue. On the other hand, the incidence of difficulty paying telecommunication bills drops to five per cent among bill-payers who have not experienced bill shock.

acma | 25

74%

26%

Have experienced bill shock

Have not experienced bill shock

Figure 20 Post-paid bill-payers who had difficulty paying a telecommunications bill—by experience of bill shock

14

30

5

0

10

20

30

40

TOTAL Experienced bill shock Not experienced bill shock

Q11. When you received your most recent unexpectedly high bill, did you have difficulty in paying it in full by the due date?Q12. Not including the most recent unexpectedly high bill, in the last 12 months have you had difficulty in paying a telecommunications bill?Q13. In the last 12 months have you had difficulty in paying a telecommunication bill?Base: Bill-payers for post-paid services (n=2,286); experienced bill shock (n=730); not experienced bill shock (n= 1,556).

Income is another key factor to consider when analysing the incidence of difficulty paying telecommunication bills. Figure 21 shows a clear inverse relationship between income and difficulty paying telecommunication bills, for both personal and household income.

Post-paid bill-payers with lower annual personal and household income are more likely—in some cases significantly more likely—to experience difficulty paying telecommunication bills than bill-payers who have higher incomes. Bill-payers with higher annual incomes (over $100,000) are significantly less likely to face difficulties paying telecommunication bills.

Figure 21 shows that post-paid bill payers with an annual income under $50,000 are significantly more likely to experience difficulty paying telecommunication bills (18 per cent), while those on annual incomes over $50,000 are significantly less likely (11 per cent).

26 | acma

Figure 21 Post-paid bill-payers who had difficulty paying a telecommunication bill—by annual income

15

21 21

14

2119

1719

13 129 8

24

3228

20

24

10

16

79

11

640

5

10

15

20

25

30

35

%

Household income Personal income

Q11. When you received your most recent unexpectedly high bill, did you have difficulty in paying it in full by the due date?Q12. Not including the most recent unexpectedly high bill, in the last 12 months have you had difficulty in paying a telecommunications bill?Q13. In the last 12 months have you had difficulty in paying a telecommunication bill?D5. Roughly speaking, into which of the following ranges would your annual household income fall?D7. Roughly speaking, into which of the following ranges does your personal annual income before tax fall?Base: Bill-payers for post-paid services (n=2,286).

Figure 22 Post-paid bill-payers who had difficulty paying a telecommunication bill—by household income summary

14

86

18

82

11

89

0 20 40 60 80 100

Had difficulty paying bills

No difficulty paying bills

%

TOTAL Under $50,000 per annum Over $50,000 per annum

Q11. When you received your most recent unexpectedly high bill, did you have difficulty in paying it in full by the due date?Q12. Not including the most recent unexpectedly high bill, in the last 12 months have you had difficulty in paying a telecommunications bill?Q13. In the last 12 months have you had difficulty in paying a telecommunication bill?D5. Roughly speaking, into which of the following ranges would your annual household income fall?Base: Bill-payers for post-paid services (n=2,286).

acma | 27

Frequency and time frame Out of all post-paid bill-payers who have experienced some sort of difficulty paying a telecommunication bill in the last 12 months, a quarter (24 per cent) did so once. For the majority of respondents (59 per cent), it was three times, while for almost a quarter (23 per cent) it was more than four times, and for only 10 per cent more than five times.

Figure 23 How frequently bill-payers had difficulty paying telecommunication bills in the last 12 months

24

18 16

12

18

9

1

-

10

20

30

Once Twice Three times Four times Five times or more

Don't know Refused

%

Q14. How many times have you had difficulty in paying a telecommunication bill in the last 12 months?Base: Post-paid bill-payers who had difficulty paying telecommunications bills (n=290).

Younger bill-payers (18–24 years) are significantly more likely to face difficulties paying telecommunication bills once in a year (37 per cent). Bill-payers in this age group are also significantly less likely to have difficulties paying their bills five times or more.

To some extent, this can be explained by the fact those aged 18–24 are more likely to be aware of spend and credit management tools offered by the service provider (see Chapter 9). However, such results are based on a small sample size, and need to be interpreted with care.

On the other hand, there is a higher likelihood for those aged 35–54 to experience these problems five times or more in a year (see Figure 24).

28 | acma

Figure 24 How frequently bill-payers had difficulty paying telecommunication bills in the last 12 months—by age

24

18

17

12

19

9

1

37

22

18

13

1

10

0

20

23

14

10

22

10

2

17

17

18

15

26

7

0

31

10

16

10

17

12

3

0 10 20 30 40

Once

Twice

Three times

Four times

Five times or more

Don't know

Refused

%

TOTAL 18–24 25–34 35–54 55+

Figure 25 shows that post-paid bill-payers with an annual income over $50,000 were significantly more likely to experience difficulties paying bills only once in the last year (30 per cent).

acma | 29

Figure 25 How frequently bill-payers had difficulty paying telecommunication bills in the last 12 months—by household income

24

18

17

12

19

9

1

18

17

16

14

21

13

1

30

18

17

11

18

5

1

0 10 20 30 40

Once

Twice

Three times

Four times

Five times or more

Don't know

Refused

%TOTAL Under $50,000 per annum Over $50,000 per annum

Q14. How many times have you had difficulty in paying a telecommunication bill in the last 12 months?Base: Post-paid bill-payers who had difficulty paying telecommunications bills (n=290).

Just under a quarter (23 per cent) of post-paid bill-payers who experienced difficulty paying a telecommunication bill in the last year did so a month before being interviewed, one in five (20 per cent) two months before and one in 10 (12 per cent) less than a month before.

30 | acma

Figure 26 Time frame of most recent incident of difficulty paying a telecommunication bill

12

23

20

910

3

8 8

6

-0

5

10

15

20

25

Less than a month ago

1 month ago 2 months ago 3 months ago 4 months ago 5 months ago 6 months ago Between 7 and 12

months ago

Don't know Refused

Q15. Can you tell me how many months ago was this?Base: Post-paid bill-payers who had difficulty paying a telecommunications bill (n=290).

Services and service providersPost-paid mobile phones and fixed landlines are the services most likely to be involved when bill-payers have difficulty paying their telecommunication bills.

Over half (57 per cent) of bill-payers who experienced this issue did so when a post-paid mobile phone was involved, nearly half (49 per cent) with a fixed landline bill and 31 per cent with an ADSL/ADSL2/ADSL2+ broadband connection.

Figure 27 Services involved in difficulty paying telecommunication bills

1

2

2

4

8

8

31

48

57

0 10 20 30 40 50 60

Dial-up internet line or account

Tablet (e.g., iPad)

Internet or VoIP phone

Other


Mobile broadband




Q16. Which service or services were involved?Base: Post-paid bill-payers who had difficulty paying telecommunications bills (n=290).

In terms of trends across different age groups, those aged 18–24 are significantly more likely to encounter difficulties paying mobile phone bills than fixed landline bills (see Figure 28). This reflects the fact that this age group is also significantly less likely to pay for a landline than all other respondents (not charted).

acma | 31

However, such results are based on a small sample size and need to be interpreted with care.

Older bill-payers (aged over 55 years) are significantly more likely to experience difficulties paying fixed phone bills, and less likely to face this issue with ADSL/ADSL2/ADSL2+ broadband connection and cable broadband connection.

To some extent, this can be explained by the fact that this age group is less likely to pay for an ADSL/ADSL2/ADSL2+ broadband connection (not charted).

Figure 28 Services involved in difficulty paying telecommunications bills—by age

57

48

31

8

8

78

15

22

0

0

50

54

40

8

8

52

56

35

7

11

51

64

18

18

11

0 20 40 60 80 100

Post-paid mobile phone/mobile phone on a

plan




Mobile broadband

%

TOTAL 18–24 25–34 35–54 55+

Q16. Which service or services were involved?Base: Post-paid bill-payers who had difficulty paying telecommunications bills (n=290); 18–24 (n= 30); 25–34 (n=62); 35–54 (n=139); 55+ (n=59).

Difficulty paying telecommunication bills across service providers shows that Telstra or Bigpond was involved in over half of incidents (58 per cent), followed by Optus (23 per cent) and Vodafone (five per cent). All other service providers were involved in less than 15 per cent of instances (see Figure 29).

However, comparing the distribution of service providers across all post-paid bill-payers in this sample, Telstra and Vodafone bill-payers are significantly less likely to experience difficulty paying their bill. Optus bill-payers are significantly more likely (see Figure 30).

32 | acma

68

58

30

5

17

23

0 20 40 60 80

All bill-payers

Bill-payers who experienced

difficulty paying a telco bill

%

Optus Vodafone Telstra

Figure 29 Service providers involved in difficulty paying bills

0%

1%

7%

1%

1%

1%

3%

3%

5%

23%

58%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60%

Prefer not to say

Can't say

Other

TPG

iiNet

Dodo

3Mobile/VHA(3)

Virgin Mobile

Vodafone

Optus (Optus Mobile/Optus Networks/Optus Broadband)

Telstra/BigPond

Q17. Who was the service provider?Base: Post-paid bill-payers who had difficulty paying telecommunications bills (n=290).

Figure 30 Major service providers involved in difficulty paying bills—comparison with market distribution

Q17. Who was the service provider?Base: Post-paid bill-payers who had difficulty paying telecommunications bills (n=290).

A significantly higher proportion of bill-payers over the age of 55 have had difficulties paying their bill with Telstra (Figure 31). Younger bill payers (18–24 years) are significantly less likely to face issues with Telstra, but more likely to have difficulties with Optus.

acma | 33

To some extent, this is because younger people are significantly more likely to have at least one account with Optus and are less likely to have one with Telstra. The opposite is true for bill-payers over 55, who are more likely to have an account with Telstra and less likely to have one with Optus (not charted).

Figure 31 Major service providers involved in difficulty paying bills—by age

68

30

17

45

42

20

59

34

24

72

29

18

78

24

10

0 10 20 30 40 50 60 70 80 90

Telstra

Optus

Vodafone

%

TOTAL 18–24 25–34 35–54 55+Q17. Who was the service provider?Base: Post-paid bill-payers who had difficulty paying telecommunications bills (n=290); aged 18–24 (n= 30), 25–34 (n=62); 35–54 (n=139); 55+ (n=59).

Reasons for difficulty paying billsAmong bill payers who had difficulties paying a telecommunication bill in the last 12 months, nearly half (47 per cent) indicated bill shock as one of the main triggers. One in six indicated other financial reasons such as poor budgeting or lack of work, and one in seven indicated something happening that they had not planned for (14 per cent).

34 | acma

Figure 32 Reasons or triggers for difficulties paying telecommunications bills

-

1

2

5

5

7

14

16

18

47

0 10 20 30 40 50

Can't say

Prefer not to say

Experienced a separation or divorce

Other bills or expenses at the same time/other bills were high

There was an illness or death in the family

Lost my job/partner lost their job

Something happened that I hadn't planned for (unspecified)

Financial reasons/couldn't afford/short of money/poor budgeting/low income/less hours/lack of work/student/on pension

Some other reason

The amount due was a lot more than it usually is/it was much higher than expected

Q18. What were the reasons you had difficulty paying the bill?Base: Post-paid bill-payers who had difficulty paying telecommunications bills (n=290)

While the most common reason for difficulty paying bills was bill shock, the qualitative component provides interesting insights into the other reasons for difficulties paying bills:

I had a pile [of bills] coming in and everything else coming in there at once. All the other bills [were] coming in there at once. There was a big bill as well, but I got all the bills at once. (NSW, June 2012)

At the start of the year I had a grandfather who was very sick, so I was also helping to pay for the cost of his care and that made it very hard to pay the bills for a while.(Qld, June 2012)

My husband had a number of surgeries and was off work. (NSW, June 2012)

I had a [bad] job with bad pay. (Qld, June 2012)

Well, I'm on a pension, I'm on disability pension, so it’s not as if I've got extra loads of money. (NSW, June 2012)

acma | 35

Bill-payers on lower incomes (under $50,000 per year) are significantly more likely to have encountered difficulties paying telecommunication bills because of missing one or more regular payments. Respondents on higher incomes (over $50,000 per year) are significantly less likely to miss regular payments or to misunderstand their plans or the way charges are applied.

The below quote from one of the in-depth interviews reflects this result and provides some insights into some of the attitudes of the younger age group:

I’m on Youth Allowance as well […] and I will only work [a few hours] because if I go over my Youth Allowance gets cancelled … I did not pay it, I did not call up, I just left it for the next bill. (NSW, June 2012)

Figure 33 Reasons or triggers for difficulties paying telecommunication bills—by household income

48

16

11

10

9

2

18

3

48

23

17

8

10

1

13

2

50

9

4

12

8

2

21

5

0 10 20 30 40 50 60

Used the service more than usual (i.e. downloading more videos or more calls)

Didn't understand the plan and charges

Missed one or more regular payments

Used new features (i.e. GPS or new apps) or started downloading videos

Provider error with billing

Used mobile phone or data service overseas on roaming

Other

Don't know

%


Q19. Why was the amount due higher than usual, or higher than what you expected?

Base: If reason for difficulty was bill shock (n=144); Household income under $50,000 p.a. (n= 64); Household income over $50,000 p.a. (n=74).

For those post-paid bill payers who had difficulty paying an unexpectedly high bill, the most commonly nominated trigger for bill shock was a higher-than-usual use of the service (47 per cent). For 16 per cent, the higher bill was due to the fact that they had not understood the plan or the way they were being charged, while for one in 10 the amount was higher than expected because they had missed one or more regular payments (11 per cent).

36 | acma

Figure 34 Reasons or triggers of bill shock

3

18

2

9

10

11

16

48

0 10 20 30 40 50 60

Don't know

Other

Used mobile phone or data service overseas on roaming

Provider error with billing

Used new features (i.e. GPS or new apps) or started downloading videos

Missed one or more regular payments

Didn't understand the plan and charges

Used the service more than usual (i.e. downloading more videos or more calls)

%Q19. Why was the amount due higher than usual, or higher than what you expected?Base: If reason for difficulty was bill shock (n=144).

Just under a third (31 per cent) of bill-payers who said bill shock was a reason for difficulties paying their telecommunication bills received a bill that was less than $100 over the expected amount. Nearly half (47 per cent) of the respondents had to deal with bills that were over $100 but less than $500, and just over one in 10 (12 per cent) received a bill that was over $500 more than the expected amount.

On average, bill-payers who had difficulties paying a bill that was higher than expected received a bill that was $225 higher than usual. This is about a third higher than the average bill shock amount of $170 (see Chapter 4).

acma | 37

Figure 35 Amount of bill shock that caused difficulties for telecommunications bill-payers

10

6

17

8

24

23

12

0 5 10 15 20 25 30

Can't say

Less than $30

$30–$50

$51–$99

$100–$199

$200–$499

Over $500

%Q20. Approximately how much higher than expected was the bill that you had difficulty paying?Base: If reason for difficulty was higher amount (n= 144).

38 | acma

6. Contact with the service provider

Chapter overview> Three in five bill-payers (59 per cent) had contacted their service provider due to bill shock or difficulty

paying a bill, with:> those aged 25–34 years significantly more likely to contact their service provider (67 per cent)> 44 per cent of those whose bill was less than $30 over the expected amount contacting their

provider> 79 per cent of those whose bill was $200–$499 over the expected amount contacting their provider> 76 per cent of those whose bill was more than $500 over the expected amount contacted their

provider.> The majority (85 per cent) of bill-payers contacted their service provider when they received a bill they

had difficulty paying.> The majority (93 per cent) of consumers who live alone contacted their service provider when they

received a bill they had difficulty paying (n=60).> Two-thirds (64 per cent) of bill-payers who experienced bill shock disputed the amount of the debt or bill

to their service provider.> Males (71 per cent) are significantly more likely than females (59 per cent) to dispute the amount of the

debt or bill.> Three in five (65 per cent) bill-payers who contacted their service provider due to bill shock or difficulty

paying their bill were offered a reduced amount to be paid.> Two-thirds (67 per cent) of bill-payers who had difficulty paying their fixed-line phone or fax line were not

offered a reduced amount to be paid.> Two-thirds (64 per cent) of bill-payers who contacted their service provider due to bill shock or difficulty

paying their bill were satisfied with the outcome, although those aged 25–34 years were significantly less likely to be satisfied with the outcome.

> A quarter (25 per cent) of bill-payers who contacted their service provider were satisfied with the quick resolution.

> A quarter (23 per cent) of bill-payers who contacted their service provider were not satisfied, with the staff not understanding or empathetic of their problem.

IntroductionChapter 6 provides information from bill-payers who contacted their service providers due to bill shock or difficulty paying their bills and their reasons for satisfaction or dissatisfaction with the outcome.

Customers contacting the service providerThree in five (59 per cent) bill-payers who experienced bill shock or difficulty paying bills contacted their service provider.

acma | 39

Figure 36 Bill-payers who contacted service provider due to bill shock

59%

40%

1%

Contacted service provider

Didn't contact service provider

Don't know

Q21. Did you contact your service provider? For bill shock or difficulty paying bills.Base: Bill-payers who experienced bill shock or difficulty paying bills (n=804).

The proportion who contacted their service provider due to bill shock or difficulty in paying their bills varied across the age groups. Those aged 25–34 years were significantly more likely to contact their service provider (67 per cent) than any other age groups.

Figure 37 Contacted service provider—by age

5955

67

57 58

0

20

40

60

80

TOTAL 18–24 25–34 35–54 55+Q21. Did you contact your service provider? For bill shock or difficulty paying bills.S4. What is your age?Base: Bill-payers who contacted service provider because of bill shock or difficulty paying bills (n=475); aged 18–24 (n=38); 25–34 (n=101); 35–54 (n=203); 55+ (n=133).

Bill-payers who had a post-paid service bill $200 to $499 over the expected amount were significantly more likely to contact their service provider (74 per cent) than those with a bill less than $30 over the expected amount (44 per cent).

40 | acma

Figure 38 Contacted service provider—breakdown by total amount over expected bill

59

44

56 5863

74 76 77

0

20

40

60

80

100

TOTAL Less than $30

$30–$50 $51–$99 $100–$199 $200–$499 Over $500 Can't say

%

Q21. Did you contact your service provider? For bill shock or difficulty paying bills.Q10c. Thinking about the last time you received an unexpectedly high bill, approximately how much higher than expected was this bill?Base: Bill-payers who contacted service provider because of bill shock or difficulty paying bills (n=475).

Timing of the contactThe majority of bill-payers (85 per cent) contacted their service provider as soon as they received a bill they had difficulty paying.

Figure 39 Time frame for contacting service provider

0

1

2

5

7

85

0 20 40 60 80 100

When contacted by a debt collection agency

When you received a notice saying the service would be disconnected if payment wasn't made

After the service was disconnected

When you received a reminder notice

Some other time

When you received a bill you had difficulty paying

%

Q22. When did you contact your service provider?Base: Bill-payers who contacted service provider because of bill shock or difficulty paying bills (n=475).

Of those bill-payers who live alone, 93 per cent contacted their service provider when they received a bill they had difficulty paying. This may be due to not being able to rely on others living in their households to help them pay that bill.

acma | 41

Figure 40 Contact when received bill had difficulty paying—by household composition

8593

8882

7685 86 87

0

20

40

60

80

100

TOTAL Live alone Partner and no children

Partner and children

Single parent With parents Shared household or group house

Other

%

Q22. When did you contact your service provider?D1. Which best describes your current living arrangement?Base: Bill-payers who contacted service provider because of bill shock or difficulty paying bills (n= 475); live alone (n=60), partner and no children (n=133), partner and children (n=180), single parent (n=40), with parents (n=21), shared household or group house (n=32), other (n=8).

Bill disputesAmong those bill-payers who contacted their service provider when they received an unexpectedly high bill, two-thirds (64 per cent) disputed the amount of the debt or bill. Of those who disputed the amount, males (71 per cent) were a significantly higher proportion than females (59 per cent).

Figure 41 Bill disputes

64%

35%

1%

Disputed amount

Did not dispute amount

Don't know

Q23 Did you dispute the amount of the debt or bill with the service provider?Base: Bill-payers who contacted service provider because of bill shock or difficulty paying bills (n=475).

42 | acma

Figure 42 Bill disputes—by gender

64

71

59

0

20

40

60

80

Total Male Female

%

Q23 Did you dispute the amount of the debt or bill with the service provider?S3. RECORD GENDERBase: Bill payers who contacted service provider because of bill shock or difficulty paying bills (n=475).

A third (36 per cent) of bill-payers whose bill was higher than expected disputed the amount of the debt or the bill because they were charged a higher rate than agreed. One in six (16 per cent) did not make the calls, use the data or send the SMSs they were charged for, and one 10 ten (13 per cent) did not understand the plan.

Figure 43 Reason for bill dispute

9

11

11

13

16

18

36

0 10 20 30 40

Not notified I was over my cap/allowance

Bill error/over charged/charged for an amount already paid/a service not requested/a discountinued service

Bill/usage was high/unusually high/exceeded cap/charged double

Didn't understand the plan

Didn't make the calls/use data/send SMS

Other

Was charged a higher rate than agreed

%Q23a. What was the reason you disputed the bill?Base: Bill-payers who disputed amount (n=313).

Three in five (58 per cent) bill-payers who disputed the amount of the debt or bill with their service provider were offered a reduction in the amount that was to be paid (see Figure 44). However, two-thirds (67 per cent) of bill-payers who had difficulty paying their fixed-line phone, landline or fax line were not offered a reduction (see Figure 45).

acma | 43

Figure 44 Provider offered to reduce the due amount

58%

41%

2%

Service provider offered to reduce amount

Service provider did not offer to reduce amount

Don't know

Q24. When you contacted the service provider, did they offer to reduce the amount needed to be paid?Base: Bill-payers who disputed the amount (n=313).

Figure 45 Provider offered to reduce the due amount—by service involved

0

29

31

34

42

54

76

100

71

69

66

58

46

24

0 20 40 60 80 100

Internet or VoIP phone


Other




Mobile broadband

Service provider offered to reduce amount

Service provider did not offer to reduce amount

Q16. Which service or services were involved?Q24. When you contacted your service provider, did they offer to reduce the amount that needed to be paid?Base: Bill-payers who had trouble paying bills and were offered a reduced amount (n=94); mobile broadband (n=5), post-paid mobile phone (n=50), ADSL/ADSL2/ADSL2+ (n=22), fixed-line phone (n=38), other (n=9), cable (n=8), internet or VoIP phone (n=3).

44 | acma

Satisfaction with outcomes of contactTwo-thirds (64 per cent) of bill-payers who contacted their service provider due to bill shock or difficulty paying bills were satisfied with the outcome. Satisfaction among those aged 25–34 was the lowest, with just over half (55 per cent) feeling satisfied with the outcome.

Figure 46 Satisfaction with the outcome of contact with service provider

64%

34%

3%

Satisfied

Not satisfied

Don't know

Q38. Were you satisfied with the outcome of your contact with the service provider?Base: Bill-payers who contacted service provider (n=475).

Figure 47 Satisfaction with the outcome of contact with service provider—by age

64

72

55

6567

3428

41

32 31

30

4 3 20

10

20

30

40

50

60

70

80

TOTAL 18–24 25–34 35–54 55+

Satisfied Not satisfied Don't knowS4. What is your age?Q38. Were you satisfied with the outcome of your contact with the service provider?Base: Bill-payers who contacted service provider (n=475).

acma | 45

The most common reason for bill-payers to be satisfied when they contacted their service provider due to bill shock or difficulty paying bills was quick resolution (25 per cent), followed by amount reduced (20 per cent) and staff understanding or empathetic of their problem (16 per cent).

Figure 48 Reason satisfied with outcome

1

5

10

11

12

16

20

25

0 10 20 30 40

Don't know

Ease of contact

Other

Staff explained clearly how they could assist

Arrangement suited

Staff understanding or empathetic of my problem

Amount reduced

Quick resolution

%Q39. What was the main reason you were satisfied?Base: Bill-payers who were satisfied with outcome of contact with service provider (303).

This positive experience is reflected in the following quotes from the qualitative component of the study:

Yes, the first time I found out about the download problem, I said to them ‘wait a second, look I had no idea about that’ and they had a discussion about it and they said ‘well look, it’s actually something a lot of people have been caught out on’ and they went away and called me back about an hour later and said ‘we’re going to change you over to this particular plan and this will suit you a lot better’ and then [unclear] ‘we’ll actually waive that this time’. (Qld, June 2012)

I rang them up and arranged to pay it off. Pretty helpful, yes I understood it well. I rung them straightaway and got it done. (Vic., June 2012)

I ask them to extend the due date, that’s what I do. I just ring them up and say can you extend the date and they just have happily, no worries. (NSW, June 2012)

The most common reason for these bill-payers to be unsatisfied was for other reasons not stated in the questionnaire (33 per cent), followed by staff not understanding or being empathetic about their problem (23 per cent) and difficulty of contact (11 per cent).

46 | acma

Figure 49 Reason not satisfied with outcome

2

5

6

7

7

8

11

23

33

0 10 20 30 40

Don't know

Did not explain consequences of not paying bill on time or not meeting the arrangement

Staff did not explain clearly how they could assist

Provider wouldn't reduce the bill/I still had to pay

Changed payment arrangement without my agreement

Slow resolution

Difficulty of contact

Staff not understanding or empathetic of my problem

Other

%Q40. What was the main reason you weren't satisfied?Base: Bill-payers who were not satisfied with outcome of contact with service provider (n=172).

The dissatisfaction and frustration of these customers is clearly reflected in the following quotes from the in-depth interviews:

No, they were bad. They were not going to help me, they were just blaming me on everything, because I wanted everything on one bill and then they were not doing it. (Vic., June 2012)

I just got sick of talking to them, because they just didn't want to know about it […] I was just getting really upset, because I was actually paying an extra $15 a month for those overdue bills and things, and I just I'm sick of it now, so I just paid the extra. (NSW, June 2012)

I don't think you’re talking to people, because you just talk to yourself after a while, and I just gave up. (NSW, June 2012)

No, they just told me they’d fixed it and it would be right on my next account and everything. They did that about three or four times, so I just gave up. (NSW, June 2012)

You need to see 100 or something bill with three kids, that’s what I feel, for no reason and when you ring them they say … make it our fault and it’s so stressful and everyone looked at us like you don’t pay your bills, that’s how you got [audio], so every [unclear] we go to, it’s just [unclear].’ (Vic., June 2012)

acma | 47

7. Credit management

Chapter overview> One-third of the respondents (33 per cent) who contacted their service provider asked for an extension

on the bill’s due date, with:> those aged 55 and over significantly less likely to request an extension (23 per cent)> those with annual household incomes below $50,000 more likely to ask for an extension (54 per

cent)> 85 per cent requesting an extension of four weeks or less.

> Eighty-one per cent of those asking for an extension said there was no negotiation on the payment plan.> Eighty-eight per cent of those negotiating a payment plan accepted the arrangement.> Payment plans were generally similar, with:

> two-thirds of those granted a plan given less than a month to make a payment (67 per cent)> nine in 10 involving instalment amounts below $200, 29 per cent between $100 and $199, 27 per

cent between $50 and $99, and 23 per cent less than $50.> Only 14 per cent reported restrictions and eight per cent suspensions of service while on the payment

plan.> Very few (three per cent) of those who experienced difficulty paying bills had their debts listed with a

credit reporting agency.> One in three (29 per cent) people who contacted their service provider due to payment difficulty or bill

shock was offered advice about avoiding such situations in the future.> The most common advice offered related to switching plans (65 per cent).

IntroductionChapter 7 discusses the outcome of contacts with service providers when the consumer receives a bill that is unexpectedly high or has difficulty paying.

Extension of bill due dateOne-third of the respondents (33 per cent) who contacted their service provider asked for an extension on the bill’s due date.

48 | acma

Figure 50 Extension of bill’s due date

66%

33%

1%

Did not ask for extension of due date

Asked for extension of due date

Don't know

Q24a. When you contacted your service provider about the bill, did you ask for an extension of your bill's due date?Base: Bill-payers who contacted service provider (n=475).

Gender differences were not significant but age was a factor. Respondents aged 55 and over were significantly less likely to request an extension (23 per cent). People with annual household incomes below $50,000 and single parents (50 per cent, not graphed) were significantly more likely to request an extension.

Figure 51 Extension of bill’s due date—by gender, age, annual household income

33

32

34

40

38

32

23

54

25

0 20 40 60

TOTAL

Male

Female

18–24

25–34

35–54

55+

Under $50,000 per annum

Over $50,000 per annum

GEN

DER

AGE

SUM

MAR

YH

OU

SEH

OLD

IN

CO

ME

%

acma | 49

Most of those who asked for an extension of time were granted one, while a small group (four per cent) reported that their provider did not grant an extension. The majority (63 per cent) received a payment extension of up to two weeks.

Figure 52 Length of time service provider extended date

1

2

4

7

8

15

16

48

0 20 40 60

12 weeks or more

8 weeks

Service provider didn't agree to an extension

3 weeks

Can't remember/don't know

Less than 2 weeks

4 weeks

2 weeks

%

Payment planEighty-one per cent (81 per cent) of those who contacted their service provider said there was no negotiation about a payment plan. Greater flexibility was given (based on small sub-samples) to people on lower incomes or single parents.

Figure 53 Payment plan

81%

18%

2%

Service provider did not negotiate payment plan

Service provider negotiated payment plan

Don't know

Where negotiations were initiated, requests for additional information were uncommon (15 per cent), as shown in Figure 54.

50 | acma

Figure 54 Provider asked about financial situation

82%

15%

3%

Service provider did not ask for information on financial situation

Service provider asked for information on financial situation

Don't know

Q26. Did the provider ask for further information from you about your financial situation?Base: Bill-payers who contacted service provider and negotiated payment plan or don’t know (n=94).

The most common type of information (based on 11 people) was a ‘verbal explanation of the reason for the hardship’ (mentioned by five of the 11).

Figure 55 Financial information provider required

5

5

17

29

54

0 20 40 60

Documentary/written proof of income and/or expenditure

Documentary/written proof of reason of hardship

Verbal explanation of income

Other

Verbal explanation of reason of hardship

%

Eighty-eight per cent of those negotiating a payment plan accepted the arrangement.

acma | 51

Figure 56 Payment arrangement accepted

88%

12%

Accepted arrangement

Did not accept arragement

Q28. Did you accept the arrangement?Base: Bill-payers who negotiated payment plan (n=84).

Two-thirds of those granted a plan were given less than a month to make repayment (67 per cent). Eighty-two per cent were given no more than two months.

Figure 57 Length of time given to pay the amount

67

15

6

1

1

10

0 20 40 60 80

Less than 1 month

1–2 months

2–3 months

3–6 months

More than 6 months

Can't remember/don't know

%

Q29. What was the period of time you were given to pay the amount?Base: Bill-payers who accepted arrangement (n=75).

Payment amounts per instalment were rarely above $200 (only eight per cent of the cases were above that amount). The most common amount was $100–$199 (for 29 per cent) followed closely by $50–$99 (26 per cent) and less than $50 (24 per cent).

52 | acma

Figure 58 Amount of each instalment

23

27

29

7

1

13

0 20 40

Less than $50

$50–$99

$100–$199

$200–$499

$500 or more

Not disclosed

%Q30. How much was each instalment?Base: Bill-payers who accepted arrangement (n=75).

Nine in 10 (87 per cent) considered the arrangement was reasonable.

Figure 59 Arrangement reasonable

87%

12%1%

Considered arrangement reasonable

Didn't consider arrangement reasonable

Don't know

Q32. Do you consider the arrangement to be reasonable?Base: Bill-payers who accepted arrangement (n=75).

While the payment was in effect, restrictions or suspensions of service were not commonly imposed. Only 14 per cent reported restrictions and six per cent suspensions of service.

In 86 per cent of the cases, payment arrangements were completed.

acma | 53

Figure 60 Service restricted

14%

6%

80%

Restricted

Suspended

No restriction/suspension

Q31. Was the service restricted, for example with restrictions on call or data usage, or suspended?Base: Bill-payers who accepted arrangement (n=75).

However, the qualitative component shows a sobering picture of the satisfaction with the arrangement:

I was in tears by the end of it. It was like my God, are you not understanding me here? It doesn’t matter what you suggest here, I can’t do it and I was very angry and sick at the time. I was frustrated because they’re not listening. (NSW, June 2012)

Not really, just a more reasonable payment plan would be fine. It’s not $300 a week, which is impossible. (NSW, June 2012)

I asked them if I could have an extension and the best they could do is one month. I said, well, in one month, I've got two pay packets, I could never do that, so I pulled out the credit card and gave it a bash and I paid it off with a credit card, which bit me in the arse as it turns out, but oh well, there’s nothing I can do. (Vic., June 2012)

Some respondents in particular voiced their dissatisfaction with the extra charges imposed by the service provider for the arrangement:

They were happy to extend it, but they did throw in an extra $30 charge for not paying on time. Not really [reasonable], it was only one week. (Vic., June 2012)

Well they put late fees on it and all sorts of stuff, even though the phone was shut down by them there are still additional charges put on to it but they never told me what the additional charges were. (Qld, June 2012)

Credit reporting agenciesRegardless of whether a bill payment extension was requested, survey participants who expressed difficulty with paying bills rarely had their debt listed with a credit reporting agency. This outcome was mentioned only by three per cent (representing 10 people).

54 | acma

Figure 61 Aware debt listed with credit reporting agency

3%

86%

11% Debt listed with credit reporting agency

Debt not listed with credit reporting agency

Don't know

Q44. Was the debt listed with a credit reporting agency?Base: Bill-payers who had trouble paying bills (n=290).

However for those few whose bill was listed with a credit reporting agency, this experience was quite distressful, as shown in the following quotes from the qualitative component:

We have got a mortgage, we have kids, we have got debts otherwise and you have got this constant debt hanging over your head and you don't quite know why.(NSW, June 2012)

I rung up and asked for an extension. I double-checked the date and everything, and I said I would ring you back to pay that amount plus more if it was needed and because it was in mum’s name (I was under 18), mum went for a car loan and she could not get it because it said she was in debt $520 or something to them, but we had not received anything at all since I last spoke to them. They said they closed the account and nothing was owed, and not to worry anymore. We haven’t received letters. […] We had not received any of that until basically mum went for the car loan and it was declined. (NSW, June 2012)

Solutions for the futurePeople who contacted their service provider about payment difficulty or bill shock were usually not offered long-term strategic advice about avoiding such situations in the future (69 per cent), with only 28 per cent offered any such information.

People aged 18–34 seem more likely to be offered solutions than those older (based on small sub-samples, not graphed).

Bill-payers who had experienced multiple instances of bill shock or difficulty paying bills in the last year (more than twice) were instead significantly less likely to be offered alternative solutions for the future (22 per cent) compared to other bill-payers (not graphed).

acma | 55

Figure 62 Offered other solutions for future

28%

69%

3%

Offered other solutions for future

Not offered other solutions for future

Don't know

Q41. Were you offered any other solutions to reduce the likelihood of getting bills you couldn't afford to pay in the future?Base: Bill-payers who contacted service provider (n=475)

The most common information offered related to switching plans (65 per cent). The next most common category (tools to monitor usage) was a distant second at 15 per cent.

Figure 63 Solutions offered for future

65

15

12

5

2

2

8

1

0 20 40 60 80

Switching to an alternative plan

Tools to monitor your usage expenditure

Restrictions on calls or data usage

Provider gave advice or explained ways of reducing bill/different ways to use the phone

Switching to a prepaid product

Suspending the service

Something else

Can't say

%

Q42. What was that?Base: Bill-payers who were offered solutions for future bills (n=123).

56 | acma

Credit management for respondents who did not contact the service providerPeople who did not contact their service provider or who declined the payment agreement offered by the provider were asked how they paid the unexpectedly high bill. More than eight in 10 (83 per cent) paid the amount in full in a single payment. Not surprisingly, those with higher personal or household incomes were more readily able to do this.

Figure 64 How bill was paid

83%

6% 2%2%

5%1%

The amount was paid in full in one payment

The amount owing was paid in full over time in instalments

The amount owing is still being paid in instalments

The amount owing is still outstanding/has not been paid

Other

Don't know

Q34. How did you pay the unexpectedly high bill or amount that you had difficulty paying? Base: Bill-payers who did not contact service provider or did not accept arrangement (n=334).

How to improve experienceA third (34 per cent) of bill-payers who negotiated a payment arrangement with their service provider due to bill shock or difficulty paying a bill were either happy with the payment arrangement or felt that there was nothing more needed to improve their experience with the payment arrangement.

A small group of bill-payers thought that their experience with the payment arrangement would have been better if the language barrier with phone staff was resolved (eight per cent); if the provider put them on a better, cheaper or more manageable plan (seven per cent); or if the provider lowered the payments (six per cent).

acma | 57

Figure 65 How to improve future experience with payment arrangement

1

4

5

5

6

7

8

34

39

0 10 20 30 40 50

Can't say

Make them easier to contact/get through to quicker

If the bill was correct in the first place

More of an extention to pay/ability to pay it off over a certain period of time

If they could have lowered the payments

If they could have put me on a better/cheaper/more manageable plan

Improve the language barrier with phone staff (accent and English proficiency)

Nothing/It's good/happy with arrangement

Other

%

Q53a. What would have made your experience with the payment arrangement better?Base: Bill-payers who negotiated plan (n=84).

58 | acma

8. Contact with TIO and independent financial advice

Chapter overview> A small number (four per cent, n=37) of bill-payers who had difficulty paying contacted the TIO, with:

> four in five (29 respondents) also contacting their service provider due to bill shock or difficulty paying bill

> 15 out of 37 people doing so because their provider refused a payment arrangement> 19 out of 37 people doing so because they felt the arrangement with their service provider was

unreasonable> the most common outcome (13 out of 37 respondents) being that the TIO facilitated a resolution

mediated between the bill-payer and the provider.> Eight bill-payers who had trouble paying for their bills sought independent financial advice. Of these:

> four sought financial advice from a family member> one sought budgeting advice from a financial counsellor and found it helpful.

> A third (34 per cent) of bill-payers who negotiated a payment arrangement with their service provider felt that nothing more was needed to improve their experience with the payment arrangement or were happy with the payment arrangement.

IntroductionChapter 8 provides information from a very small number of bill-payers (37 respondents) who contacted the TIO and one respondent who sought independent financial advice from a financial counsellor. Some results have been reported using unweighted counts rather than proportions. When percentages are used, they need to be treated with care.

This chapter examines the outcome of the bill-payers’ contact with the TIO, the source of their financial advice and what respondents believe could have improved their payment arrangement.

Contact with the TIOA small group (four per cent) of bill-payers contacted the TIO about a higher-than-expected bill or difficulty paying their bill. Most (79 per cent) of these bill-payers had also contacted their service provider.

acma | 59

Figure 66 Contact TIO

4%95%

Contacted the TIO

Didn't contact the TIO Q47. Did you contact the Telecommunications Industry Ombudsman or TIO about the bill that was higher than expected/that you had difficulty paying?Base: Bill-payers who experienced bill shock and had trouble paying bills (n=804).

Reason for contacting TIOOf those bill-payers who contacted the TIO, 15 out of 37 did so because their provider refused a payment arrangement (Figure 67), and 19 out of 37 because they felt that the arrangement with their service provider was unreasonable (Figure 68).

Figure 67 Reason for contacting TIO

41%

55%

4%

Contacted TIO because provider refused payment arrangement

Contacted TIO for other reasons

Don't know

Q48. Was this because the service provider refused to agree to a payment arrangement?Base: Total who contacted TIO (n=37).

60 | acma

79%

21%

Contacted service provider

Didn't contact service provider

Figure 68 Contact TIO because arrangement was unreasonable

54%

46%

Contacted TIO because arrangement was unreasonable

Contacted TIO for other reasons

Q49. Did you contact the TIO because you felt the arrangement offered was unreasonable? Base: Total who contacted TIO (n=37).

Outcome of contacting the TIOOf those bill-payers who contacted the TIO, the most common outcome (13 out of 37 respondents) was that the TIO facilitated a resolution between the bill-payer and the provider. The least common outcome (2 out of 37 respondents) was that the bill-payer was unsatisfied with the outcome or they had to pay the bill in full.

Figure 69 Outcome of contact with TIO

4

5

8

11

12

14

15

35

0 10 20 30 40

It wasn't a satisfactory outcome/we had to pay it

Don't know

I didn't follow through with the process

Other

TIO referred me to the service provider's resolution department/team

Outcome not yet reached

The bill was wiped/bill was reduced/fees were waived

TIO facilitated a resolution—mediated between myself and the provider

%

Q50. What was the outcome of your contact with the TIO?Base: Total who contacted TIO (n=37).

acma | 61

The qualitative component shows an overall satisfaction with the outcomes of the contact with the TIO:

Once I got in touch with the ombudsman it was sorted out fairly quickly but it was an unreasonable amount of time before that, until I had to actually take the bull by the horns and actually make a complaint about them. Yes it was an unreasonable amount of time but it was fairly quick once I was in touch with the ombudsman. (NSW, June 2012)

I contacted the telecommunications ombudsman and made the complaint, He was really prompt and efficient, gave me a number and the very next day it was solved. (Vic., June 2012)

They were good. All you really do is call them and they give you a reference number and that sort of just triggers a conversation with the manager at [the service provider company]. Once you have lodged a dispute you can actually talk to someone senior than just someone that answers the phone when you call their 1-800 number or whatever. (NSW, June 2012)

Independent financial adviceEight bill-payers (three per cent) who had trouble paying their bills sought independent financial advice. Of those, four people sought advice from family members while the rest sought advice from a financial counsellor or a friend.

The one bill-payer who was given budgeting advice sought advice from a financial counsellor they were referred to by another financial counsellor.

Figure 70 Sought independent financial advice

3%

97%

Sought independent financial advice

Didn't seek independent financial advice

Q51. Did you seek independent financial advice about the unexpectedly high bill or bill you had difficulty paying?Base: Bill-payers who had trouble paying bills (n=290).

62 | acma

9. Use of credit/spend management tools

Chapter overview> 26 per cent of bill-payers who have experienced bill shock or difficulties paying bills were aware of spend

and credit management tools before receiving an unexpectedly high bill or a bill that they had difficulty paying.

> 25 per cent of respondents who have not experienced bill shock or difficulty paying bills were aware of spend management tools.

> Online usage meters were the most popular tool used (32 per cent), followed by SMS alerts (22 per cent), and email alerts and service providers application (both 11 per cent).

> 88 per cent of bill-payers who use at least one credit/spend management tool find them useful.

IntroductionChapter 9 discusses the credit and spend management tools service providers make available to help consumers manage how much they spend on telecommunication services. The research investigated awareness of such tools and their use, including the types of tools and services, and their perceived usefulness.

When relevant, results have been compared to the 3G mobile bill-payers’ understanding of billing and charging arrangements report, published by the ACMA in June 2011.

Awareness of toolsAs shown in Figure 71, only one in four bill-payers (26 per cent) who have experienced bill shock or difficulty paying their telecommunication bills in the last 12 months was previously aware of spend and credit management tools offered by the service provider.

The qualitative study shows that in some instances the tools did not work as intended:

I was meant to get text messages. I was meant to but that didn't come, which is why I went over. (Vic., June 2012)

Awareness levels of the tools among those who experienced bill shock or difficulty paying a bill (25 per cent) was no different to the rest of bill-payers (26 per cent).

Interestingly, the study into 3G mobile bill-payers presents very similar results. There are very few differences in the use of spend management tools by those who have experienced unexpectedly high bills and those who haven’t, with very similar patterns for both pre- and post-paid services.

Both studies seem to confirm that there is no clear relationship between the use or awareness of spend management tools and the likelihood of receiving unexpectedly high bills or experiencing difficulty paying bills.

acma | 63

http://engage.acma.gov.au/reconnecting/3g-mobile/

http://engage.acma.gov.au/reconnecting/3g-mobile/

Figure 71 Awareness of credit/spend management tools prior to bill shock or difficulty paying bills

26%

72%

2%

Aware of tools before bill shock or difficulty paying bills

Not aware of tools before bill shock or difficulty paying bills

Don't know

Q54. Before you received an unexpectedly high bill or a bill you had difficulty paying, were you aware of any tools offered by your service provider to help manage the amount you spend on your communications services?Base: Bill-payers who experienced bill shock or difficulty paying bills in the last 12 months (n=804).

Figure 72 Awareness of credit/spend management tools among those who have never experienced bill shock or difficulty paying bills

25%

73%

2%

Currently aware of tools

Currently not aware of tools

Don't know

Q55. Are you aware of any spend management tools offered by your service provider to help manage the amount you spend on your communications service/s?Base: Bill-payers who have not experienced bill shock or difficulty paying bills in the last 12 months (n=1,603).

The in-depth interviews show that, despite experiencing bill shock or difficulty paying bills, some respondents were still not aware of spend management tools or are not using them:

[No I don’t use spend management tools]. I am not a big mobile phone user anyway, so I never get anywhere ... when we did have a cap I never got anywhere near.(NSW, June 2012)

64 | acma

I don’t monitor at all. Actually I think I’ve forgotten my password so I can’t have a look at my usage or anything like that. (NSW, June 2012)

We have a $99 plan, so we just make sure that we don’t make any other phone calls, just sticking to that, so we just get that $100. (Vic., June 2012)

For those who are using them, the tools are useful:

Yes they send me an SMS to say if I’m about to go over and I [stop] and it’s always usually towards the end of billing cycle I guess so to speak, so yes I never really had a problem with that. (NSW, June 2012)

As shown in Figure 73, younger people aged 18–24 are significantly more likely (35 per cent) to be aware of spend and credit management tools offered by the service providers than are older bill-payers aged 55 and over (17 per cent).

Figure 73 Awareness of credit/spend management tools—by age

26

72

2

35

62

2

28

70

1

28

70

2

17

80

2

0 20 40 60 80 100

Aware of tools

Not aware of tools

Don't know

%

TOTAL 18–24 25–34 35–54 55+

Q54. Before you received an unexpectedly high bill or a bill you had difficulty paying, were you aware of any tools offered by your service provider to help manage the amount you spend on your communications service/s?Q55. Are you aware of any spend management tools offered by your service provider to help manage the amount you spend on your communications service/s?Base: Bill-payers aware of credit and spend management tools (n=592); aged 18–24 (n=57), 25–34 (n=109), 35–54 (n=258), 55+ (n=168).

Of all the respondents, those with higher household incomes (over $50,000 per year) are significantly more likely to be aware of credit and spend management tools (29 per cent), while those with incomes under $50,000 per year (21 per cent) were significantly less likely to be aware of these tools.

acma | 65

Figure 74 Awareness of credit/spend management tools—by household income

26

72

2

21

77

3

29

69

2

0 20 40 60 80 100

Aware of tools

Not aware of tools

Don't know

%


Q54. Before you received an unexpectedly high bill or a bill you had difficulty paying, were you aware of any tools offered by your service provider to help manage the amount you spend on your communications service/s?Q55. Are you aware of any spend management tools offered by your service provider to help manage the amount you spend on your communications service/s?Base: Bill-payers aware of credit and spend management tools (n=592); household income under $50,000 p.a. (n=183); household income over $50,000 p.a. (n=388).

Use of tools The most popular spend management tool is the online usage meter (32 per cent), followed by SMS alerts (22 per cent), and email alerts and service providers’ applications (both 11 per cent).

Twenty-three per cent of bill-payers who were aware of these tools did not use them.

These findings match those of the 3G mobile bill-payers report. That study showed that the most common spend management tool was checking usage on a provider’s website (18 per cent of 3G bill-payers), followed by were SMS notifications (16 per cent).

The study also revealed that 47 per cent of 3G bill-payers were not using any tools to monitor their usage and spending.

66 | acma

Figure 75 Type of credit/spend management tools used

32

22

11

11

9

6

4

2

2

10

6

23

0 10 20 30 40

Check your usage on your provider's website

Notification by text when you nearly reach your limit

Notification by email when you nearly reach your limit

A smartphone application that keeps you informed of your usage

Provider reduces your broadband speed when you are near your broadband limit

Check your usage by texting/SMSing your provider

Restrictions on services of your choice

Provider disables your phone when you exceed your limit

Provider contacts you when expenditure is unusually high compared to previous bills

Other

Don't know

None

%Q56. Which of the tools available from your service provider do you use?Base: Bill-payers aware of credit/spend management tools (n=592).

Bill-payers on higher household incomes (over $50,000 per annum) were significantly more likely than those on lower incomes to use online usage meters (36 per cent versus 24 per cent) and email alerts (16 per cent versus eight per cent).

acma | 67

Table 3 Type of credit/spend management tools used—by sex and household income

Type of credit/spend management tool TOTALBy sex (%) By household income (%)

Male Female Under $50,000 p/a

Over $50,000 p/a

Check your usage on your provider’s website 32 34 30 24 36

Notification by text when you nearly reach your limit 22 18 25 20 23

Notification by email when you nearly reach your limit 11 8 12 16 8

A smartphone application that keeps you informed of your usage 11 11 10 8 11

Provider reduces your broadband speed when you are near your broadband limit 9 8 9 11 8

Check your use by texting/SMSing your provider 6 5 7 6 5

Restrictions on services of your choice 4 5 4 3 5

Provider disables your phone when you exceed your limit 2 2 2 2 2


2 2 3 0 3

Other 10 8 11 12 9Don’t know 6 6 6 10 4None 23 25 22 22 25

Q56. Which of the tools available from your service provider do you use?Base: Bill-payers aware of credit/spend management tools (n=592); males (n=270); females (n=322); household income under $50,000 p.a. (n=183); household income over $50,000 p.a. (n=388).

Younger bill-payers aged 18–24 appear to be significantly more likely to check their usage on their provider’s website (37 per cent), but they are significantly less likely to use email alerts (six per cent).

Those aged 25–34 years old are also significantly less likely to use email alerts (seven per cent).

68 | acma

Table 4 Type of credit/spend management tools used—by age

Type of credit/spend management tools used TOTAL

Age (%)18–24 25–34 35–54 55+

Check your usage on your provider’s website 32 37 32 33 27Notification by text when you nearly reach your limit 22 31 23 21 15Notification by email when you nearly reach your limit 11 6 7 13 14A smartphone application that keeps you informed of your usage 11 26 8 8 6

Provider reduces your broadband speed when you are near your broadband limit 9 4 11 8 10

Check your usage by texting/SMSing your provider 6 12 6 4 4Restrictions on services of your choice 4 0 6 6 4Provider disables your phone when you exceed your limit 2 1 3 2 1Provider contacts you when expenditure is unusually high compared to previous bills 2 3 0 2 4

Other 10 7 10 10 11Don’t know 6 1 6 5 12None 23 8 24 27 31

Q56. Which of the tools available from your service provider do you use?Base: Bill-payers aware of credit/spend management tools (n=592); aged 18–24 (n=57), 25–34 (n=109), 35–54 (n=258), 55+ (n=168).

For those bill-payers who use more than one type of credit or spend management tool, online usage meter is still the most frequently used tool (34 per cent), followed by SMS alerts (25 per cent) and service provider’s applications (15 per cent).

Figure 76 Credit/spend management tool most used

34

25

15

9

6

4

2

2

1

3

0 10 20 30 40

Check your usage on your provider's website (online usage meter)

Notification by text when you nearly reach your limit (SMS alerts)

A smartphone application that keeps you informed of your usage (service provider app)

Notification by email when you nearly reach your limit (email alerts)






Other

%

Q58. And what one tool do you use most frequently?Base: Bill-payers who use more than one tool (n=109).

acma | 69

Nearly half (43 per cent) of those bill-payers who were aware of credit and spend management tools didn’t use them because they didn’t think they needed such tools. A quarter (25 per cent) of bill-payers were not using the tools because they were not concerned about credit management. Five per cent did not know how to use them or have time to check them. Three per cent found the tools too difficult to use.

Figure 77 Reasons for not using credit/spend management tool

43

25

5

5

3

3

18

0 10 20 30 40 50

Don't need them/can monitor it myself/bills aren't high/don't go over cap or limit/on a plan

Don't care

Don't know how to use them/access them

Don't have time

Too difficult to use

Other

Don't know

%

Q57. Why not?Base: Bill-payers aware of tools who do not use them (n=154).

Figure 78 specifically focuses on those bill-payers who were aware of credit and spend management tools but didn’t use them because their experience of bill shock and difficulty paying bills meant they didn’t need to.

Respondents who had not experienced difficulty paying bills were more likely to not use spend management tools because they seemed unnecessary (45 per cent) compared to those who had experienced difficulty paying bills but did not use spend management tools (only 18 per cent said because they seemed unnecessary).

The difference in attitude is less marked when comparing people who have experienced bill shock on post-paid services (35 per cent) to those who have not (45 per cent). It is even less noticeable when comparing those who have experienced bill shock on pre-paid services (49 per cent) and those who have not (48 per cent).

These findings are based on small samples, and the reader must be careful when interpreting results based on small sample bases.

70 | acma

Figure 78 Reasons for not using credit/spend management tools, by experience with bill shock or difficulty paying bills

43

25

5

5

3

3

18

0 10 20 30 40 50

Don't need them/can monitor it myself/bills aren't high/don't go over cap or limit/on a plan

Don't care

Don't know how to use them/access them

Don't have time

Too difficult to use

Other

Don't know

%Q57. Why not?Q9. In the last 12 months, have you ever run out of credit sooner than expected on a pre-paid service?Q10. In the last 12 months, have you received a bill that was higher than you expected?Q11. When you received your most recent unexpectedly high bill, did you have difficulty in paying it in full by the due date?Q12. Not including the most recent unexpectedly high bill, in the last 12 months have you had difficulty in paying a telecommunications bill?Q13. In the last 12 months have you had difficulty in paying a telecommunication bill?Base: Bill-payers aware of tools who do not use them because they ‘Don’t need them/can monitor it myself/bills aren’t high/don’t go over cap or limit/on a plan’ (n=154); who had experienced difficulty paying bills (n=15); who had not experienced difficulty paying bills (n=131); who had experienced bill shock on pre-paid (n= 11); who had not experienced bill shock on pre-paid (n=39); who had experienced bill shock on post-paid (n=48); who had not experienced bill shock on post-paid (n=98).

Over half (52 per cent) of the bill-payers who used at least one credit or spend management tool did so to monitor their spending on post-paid mobile phones (see Figure 79).

The second-most common service where bill-payers used spend or credit management tool was ADSL/ADSL2/ADSL2+ broadband connection (26 per cent), followed by pre-paid mobile phones (15 per cent), fixed landline (14 per cent) and cable broadband connection (11 per cent).

acma | 71

Figure 79 Service where credit/spend management tools were used

52

26

15

14

11

8

3

3

1

0

0 20 40 60

A post-paid mobile phone or a mobile phone on a plan

An ADSL or ADSL2 or ADSL2+ broadband connection

A prepaid mobile phone

A fixed-line phone or landline or fax line

A cable broadband connection

Mobile broadband

A tablet (e.g., iPad)

None of these

An internet or VoIP phone

A dial-up internet line or account

%Q59. Which services do you use this tool for?Base: Bill-payers who use at least one tool (n=399).

Looking at differences in terms of household income, Figure 80 shows the online usage meter as the most popular spend management tool. However, respondents on higher income (over $50,000 per year) are more likely to use it (36 per cent) than those on lower incomes (24 per cent).

72 | acma

Figure 80 Most used spend management tools, by household income

3%

24%

20%

16%

2%

11%

8%

0%

6%

12%

5%

36%

23%

8%

2%

8%

11%

3%

5%

9%

0% 10% 20% 30% 40%


Check your usage on your provider's website (online usage meter)

Notification by text when you nearly reach your limit (SMS alerts)

Notification by email when you nearly reach your limit (email alerts)



A smartphone application that keeps you informed of your usage (service provider app)



Other

TOTAL: Over $50,000 per annum TOTAL: Under $50,000 per annum

Q59. Which services do you use this tool for?Base: Bill-payers who use at least one tool (n=399); aged 18–24 (n=49), 25–34 (n=76), 35–54 (n=177), 55+ (n=97).

Younger bill-payers aged 18–24 were significantly more likely to use these tools on a post-paid mobile phone (80 per cent), while those aged 35–54 (43 per cent) and 55 and over (30 per cent) were significantly less likely.

Those aged 18–24 were significantly less likely to use spend management tools on landlines (two per cent), cable broadband connections (four per cent) and ADSL/ADSL2/ADSL2+ broadband connection (seven per cent).

Table 5 Service where credit/spend management tools were used, by age

Type of credit/spend management tool TOTALAge (%)

18–24 25–34 35–54 55+A post-paid mobile phone or a mobile phone on a plan 52 80 54 43 30An ADSL or ADSL2 or ADSL2+ broadband connection 26 7 33 33 30

acma | 73

A pre-paid mobile phone 15 16 9 17 15A fixed-line phone or landline or fax line 14 2 16 18 19A cable broadband connection 11 4 11 12 19Mobile broadband 8 5 12 5 9A tablet (e.g., iPad) 3 2 5 2 4None of these 3 0 2 3 7An internet or VoIP phone 1 0 1 1 4A dial-up internet line or account 0 0 0 0 1

Q59. Which services do you use this tool for?Base: Bill-payers who use at least one tool (n=399); aged 18–24 (n=49), 25–34 (n=76), 35–54 (n=177), 55+ (n=97).

Just under a quarter (23 per cent) of bill-payers who use credit and spend management tools employ their preferred tool once a month. Approximately one in 10 do so every two or three weeks (12 per cent), once a week (10 per cent) or daily (10 per cent).

Figure 81 Frequency of usage of the preferred tool

10

9

10

12

23

9

7

11

8

0 10 20 30

Daily

2–3 times a week

Once a week

Once every 2–3 weeks

Once a month

Less than once a month

When contacted by service provider via SMS, email etc.

Other

Don't know

%Q60. How often do you use this tool?Base: Bill-payers who use more than one tool (n=109).

Perceived usefulness of toolsThe vast majority (88 per cent) of bill-payers who use at least one credit or spend management tool considers it to be useful. Looking at demographics, those aged 25–34 are significantly less likely to consider the tools useful (79 per cent compared to the average 88 per cent).

Figure 82 Perceived usefulness of tools

74 | acma

88%

9%

4%

Tools are useful

Tools are not useful

Don't know

Q61. Do you find the spend management tools you use helpful?Base: Bill-payers who use at least one tool (n=399).

Figure 83 Perceived usefulness of tools, by age

88

9

4

93

7

0

79

15

7

89

8

3

88

5

6

0 20 40 60 80 100

Tools are useful

Tools are not useful

Don't know

%

TOTAL 18–24 25–34 35–54 55+

Q61. Do you find the spend management tools you use helpful?Base: Bill-payers who use at least one tool (n=399); aged 18–24 (n=49), 25–34 (n=76), 35–54 (n=177), 55+ (n=97).

Only a small number of respondents (32) did not find these tools helpful. Of those, 16 did not need to use them because they very rarely go over their limit. Five said that the tools were not helpful because of delayed notifications or warnings, and three because the tools were too difficult to use or confusing.These findings are based on small samples, and the reader must be careful when interpreting results based on small sample bases.

Figure 84 Perceived usefulness of tools—reasons

acma | 75

39%

21%

9%

31%No need/don't use it/I don't or rarely go over limit

Delayed notifications or warnings/It goes over the limit before i'm notified

Not user friendly/difficuly to use/confusing

OtherQ61. Do you find the spend management tools you use helpful?Base: Bill-payers who don’t find credit/spend management tools useful (n=32).

76 | acma

ConclusionThe research identified some possible solutions to problems with customer service in the telecommunications industry. It was based on the experiences of the 59 per cent of respondents who approached their service provider about an unexpectedly high bill or a bill they had difficulty paying. Most of those who contacted their service provider reported a satisfactory outcome (64 per cent).

Many (64 per cent) of those who contacted their service provider about an unexpectedly high bill disputed the amount. Of those, 58 per cent were offered a reduction in the amount of the bill by the service provider concerned.

Nevertheless, some of those customers using post-paid mobile services reported repeated bill shock or difficulty paying. On average, customers using post-paid services experienced three instances of bill shock or difficulty paying in the last 12 months.

Less than three in 10 (29 per cent) of those who experienced bill shock or difficulty paying a bill and who contacted their service provider were offered advice about avoiding such situations in the future. When it was provided, the main advice to these customers was to switch plans (in 65 per cent of cases where advice was provided).

One way for service providers to help customers avoid repeated payment problems is to be more proactive in providing advice about alternative plans that may better suit customer needs.

acma | 77

Appendix A—Quantitative research

78 | acma

Appendix A1—Quantitativeresearch methodologyA1.1 Sample structureThe sample was stratified by age, gender and location (metropolitan versus non-metropolitan).

Table 6 Sample breakdown

RDD landline sample (n=2,000)

Location TOTALGender Age

Male Female 18–24

25–34

35–49

50–64 65+

Sydney 407 191 217 60 68 101 94 85Other NSW/ACT 282 136 146 24 37 69 78 74Melbourne 382 179 202 51 71 98 85 77Other Victoria 130 57 74 8 16 37 35 35Brisbane 179 82 97 24 27 52 42 35Other Queensland 213 102 111 14 33 62 52 51Adelaide 114 52 62 10 17 29 28 29Other SA/NT 49 22 27 2 4 15 16 12Perth 150 68 82 19 26 40 32 32Other Western Australia 51 25 26 2 8 15 15 11Tasmania 44 21 23 3 7 10 13 11TOTAL 2,000 935 1,066 217 313 530 489 452

Mobile-only sample (n=400)

Location TOTALGender Age

Male Female 18–24

25–34

35–49

50–64 65+

Sydney 74 32 42 9 38 18 6 2Other NSW/ACT 51 21 31 12 15 13 9 3Melbourne 57 25 32 12 23 14 5 3Other Victoria 29 13 15 8 10 5 4 2Brisbane 38 17 21 9 16 8 3 2Other Queensland 57 20 37 20 13 12 10 3Adelaide 22 11 11 5 7 7 2 0Other South Australia 13 6 7 2 3 4 2 1Perth 30 15 14 6 6 11 6 1Other Western Australia 15 7 8 2 3 6 4 1Northern Territory 4 3 1 0 1 2 1 0Tasmania 11 5 6 3 2 3 2 1TOTAL 400 174 226 87 136 103 54 19

An increasing proportion of the Australian population does not have a fixed landline connected in the home and uses a mobile phone only. To reach mobile phone-only

acma | 79

households, interviews were obtained separately by re-contacting people identified in the Roy Morgan Single Source interview who have a mobile phone and no landline connected in the home.

Quotas were set for both the RDD and mobile phone-only samples to obtain a representative coverage of the Australian population by age, gender and geographical location (metro/non-metro). Furthermore, quotas were set for both samples so that their demographic profile was representative of those with a household landline and those with only a mobile phone, as determined by the latest Roy Morgan Single Source data.

Proportional weights were applied to the data to reflect the true distribution of Australian telecommunication bill-payers 18 years and older with a fixed-line home phone or mobile phone only. Weights applied were an interlocking weight of area-by-sex, area-by-age and area-by-region (metro/country), and a rim weight for the sample type (have a home phone connected, and have a mobile phone but no fixed-line home phone).

Sample breakdown of respondents, by demographics and characteristicsA total of 2,407 computer-assisted telephone interviews (CATI surveys) were conducted. A total of 290 respondents had difficulty in paying an unexpectedly high bill and were asked in-depth questions about their experience.

Table 7 shows a breakdown of sample sizes for key demographics and characteristics of both total respondents and the 290 respondents who had difficulty in paying their bill.

Table 7 Sample sizes for key demographics and characteristics of respondents

Area Total respondents Had difficulty paying billSydney 435 51Other NSW/ACT 381 47Melbourne 431 42Other Victoria 185 22Brisbane 213 23Other Queensland 259 45Adelaide 146 21Other SA/NT 69 5Perth 165 18Other Western Australia 62 9Tasmania 61 7SexMale 1090 107Female 1317 183Age18–24 158 3025–34 378 6235–54 921 13955+ 950 59Level of education reached Total respondents Had difficulty paying billSome, finished primary school 33 3Some secondary school 191 20

80 | acma

Some Technical or Commercial 16 44th Form/Intermediate/Year 10 286 345th Form/Leaving/Year 11 159 25Finished Technical or Commercial/TAFE 152 24Finished or now studying for Matric/HSC/VCE/Year 12 329 47Some university/C.A.E training 56 10Now at university 49 10Tertiary Diploma, not University 338 41Undergraduate degree 476 52Postgraduate degree 322 20EmploymentEmployed full-time 999 119Part-time 474 65Looking for paid job 103 22Non-worker 87 24Retired 582 24Home duties 88 23Student 46 9Can’t say/refused 28 4Current living arrangementsLive alone 467 38Partner and no children 701 54Partner and children 791 117Single parent 161 35With parents 95 16Boarder 12 n/aShared household 142 24Other (specify) 38 6Household incomeUnder $15,000 126 16$15,000 to $19,999 127 17$20,000 to $24,999 113 18$25,000 to $29,999 113 13$30,000 to $39,999 162 28$40,000 to $49,999 153 25$50,000 to $59,999 136 20$60,000 to $69,999 134 25$70,000 to $79,999 132 15$80,000 to $99,999 235 29$100,000 to $129,999 215 21$130,000 or more 384 27Total under $50,000 920 132Total over $50,000 1347 147Can’t say/refused 140 11

acma | 81

Appendix A2—Quantitativeresearch instrumentsA2.1 Questionnaire designThe questionnaire for the quantitative phase of the research was developed by close consultation between ACMA and Roy Morgan Research. The questionnaire covered the following topics:> telecommunications service and service providers used by the respondents> incidence and nature of bill shock> incidence and nature of difficulty paying bills> contact with the service provider> credit management and payment arrangements> contact with the TIO> awareness and usage of spend management tools.

In addition, basic personal and household demographic data were also collected.

The final questionnaire approved by the ACMA prior to fieldwork is provided in section A2.2 below.

A2.2 Questionnaire

IntroductionRDD INTRODUCTION:Good [Morning/ Afternoon/ Evening]. My name is [SAY NAME] from Roy Morgan Research. We are conducting a survey on behalf of the Australian Communications and Media Authority, which is the Federal Government telecommunications regulator, about the experience of telecommunications bill-payers. Could I please speak to someone who is a bill payer for phone, internet or other telecommunication services in the house?IF NECESSARY RE-INTRODUCEThe Australian Communications and Media Authority is conducting important research about the experience of telecommunication bill-payers who have received unexpectedly high bills from their service providers or who have had financial difficulties paying bills.IF NECESSARY, ADD: This research will assist the ACMA in reviewing the way it addresses these issues, We will ask you a range of questions on your experience as a telecommunications consumer and bill-payer.IF NECESSARY, ADD: To ensure a representative sample of Australians it is very important to include people like you in the survey.IF NECESSARY: The survey will take approximately 10 minutes and will be used for research purposes only. Your answers will remain strictly confidential. You will not be identified in any way in the results. Your answers will be combined with the information from hundreds of other participants across Australia.IF QUERIED ABOUT HOW NAME OR NUMBER WAS SOURCED (E.G. UNLISTED NUMBER) SAY: We are contacting people from all over Australia. A computer has randomly generated numbers for us to phone.

SS SAMPLE INTRODUCTION:Good [Morning/ Afternoon/ Evening]. My name is [SAY NAME] from Roy Morgan Research. May I please speak to [SAY NAME]?IF NECESSARY, RE-INTRODUCE

82 | acma

We really appreciate your assistance by taking part in our National Consumer Poll survey at that time and would greatly appreciate your help again. We are conducting a social survey on behalf of the ACMA, the Australian Communications and Media Authority.The Australian Communications and Media Authority is conducting important research about the experience of telecommunication bill-payers who have received unexpectedly high bills from their service providers or who have had financial difficulties paying bills.IF NECESSARY, ADD: This research will assist the ACMA in reviewing the way it addresses these issues, We will ask you a range of questions on your experience as a telecommunications consumer and bill-payer.IF NECESSARY, ADD: To ensure a representative sample of Australians it is very important to include people like you in the survey.IF NECESSARY: The survey will take approximately 10 minutes and will be used for research purposes only. Your answers will remain strictly confidential. You will not be identified in any way in the results. Your answers will be combined with the information from hundreds of other participants across Australia.

RDD AND SS RECONTACT:I0. Would you like to participate?

1 Yes CONTINUE

2 NO TERMINATE

IF NECESSARY, SAY: Is now a good time or would it be more convenient if I made an appointment to speak to you at another time?

IF NECESSARY, MAKE AN APPOINTMENT.

Screeners

IF SS RECONTACT ONLY, ASK:SS0. Can I ask you if you have a landline number?SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT LIST

1 Yes TERMINATE

2 NO CONTINUE

IF RESPONDENT HAS A LANDLINE NUMBER TERMINATE, SAY: Thank you for your time, but we have already spoken to enough people who have a land line number.

ASK EVERYONE:

S1. Do you work in any of the following?

SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT LIST

1 Australian Communications and Media Authority (ACMA) TERMINATE

2 Telecommunications Industry Ombudsman (TIO) TERMINATE

3 In the telecommunications industry in general TERMINATE

4 For a network service provider TERMINATE

5 None of the above CONTINUE

IF WORK IN ANY OF THE ABOVE, SAY: Thank you for your time, but we cannot interview people who work for the ACMA/the TIO/in your industry.

acma | 83

S2. Can you please tell me your home postcode?

_________

84 | acma

S3. Record gender.

SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ LIST

1 Male CHECK QUOTA

2 Female CHECK QUOTA

IF SEX QUOTA FULL, SAY: Thank you for your time and assistance but we have spoken to enough males/females.

S4. What is your age?

SINGLE RESPONSE—INTERVIEWER NOTE: READ IF NECESSARY

1 Under 18 TERMINATE

2 18–19 CHECK QUOTA











13 70+ CHECK QUOTA

99 None of these TERMINATE

IF UNDER 18 OR REFUSED, SAY: Thank you for your time, but we can only speak to people in certain age groups.

IF AGE QUOTA FULL, SAY: Thank you for your time, but we can only speak to people in certain age groups.

acma | 85

Personal Telecommunication services

ASK EVERYONE:

Q1. Do you currently pay for any of the following telecommunications services, either for yourself or some other person or for the household?

IF NECESSARY: For personal/home use only, not for business or work.

MULTIPLE RESPONSE—INTERVIEWER NOTE: IF NECESSARY: READ OUT

1 A prepaid mobile phone

2 A fixed line phone or landline or fax line

3 A post-paid mobile phone or a mobile phone on a plan

4 A cable broadband connection

5 An ADSL or ADSL2 or ADSL2+ broadband connection

6 Mobile broadband (e.g., 3G modem) or tablet (e.g., iPad)

7 An Internet or VoIP phone

8 A dial-up Internet line or account

99 None of these

IF NONE (CODE 99 ON Q1) TERMINATE, SAY: Thank you for your time, but we can only speak to bill payers of these telecommunication services.

IF HAVE FIXED LINE PHONE (CODE 2 ON Q1):

Q1b. Who is the current service provider for your fixed line telephone or fax?

MULTIPLE RESPONSE—INTERVIEWER NOTE: READ OUT IF NECESSARY

1 AAPT

2 iiNet

3 Optus

4 Primus

5 Telstra

6 TPG

7 WestNet

97 Other (Specify)

98 Don’t know

86 | acma

IF HAVE MOBILE PHONE (CODE 1 OR 3 ON Q1):

Q2a. Is your current mobile phone a Smartphone?

IF NECESSARY—a smartphone has computer-like functionality that can access the Internet and download apps

SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

98 Don’t know

Q2b. Who is the current service provider for your mobile phone?

MULTIPLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 3

2 AAPT

3 Austrar

4 Amaysim

5 B-Digital

6 Boost

7 Crazy John’s

8 Dodo

9 Exetel

10 Lebara

11 Optus

12 Reward

13 Savytel

14 Simplus

15 Soul

16 Southern Cross Telco

17 Southern Phone

18 Telstra

19 TPG

20 Transact

21 Virgin

22 Vodafone

97 Other (Specify)

98 Don’t know

acma | 87

IF HAVE MOBILE BROADBAND (CODE 6 ON Q1):

Q3b. Is your current mobile/3G broadband service for a tablet, laptop or home internet?


1 Tablet

2 Laptop

3 Home internet

97 Other (specify)

98 Don’t know

Q4a. Is your current mobile broadband on a plan or prepaid? (i.e., do you pay a monthly bill?)


1 Plan

2 Prepaid

3 Both

98 Don’t know

4b. Who is the current service provider for your mobile broadband and/or tablet?


1 3

2 AAPT

3 Adam

4 Chariot

5 Dodo

6 Exetel

7 iiNet

8 Internode

9 iPrimus

10 Netscape

11 OPTUSnet

12 Primus-AOL

13 TADAust Connect

14 Telstra BigPond

15 TPG Internet

16 Unwired

17 Virgin

18 Vividwireless

19 Vodafone

88 | acma

20 WestNet

97 Other (Specify)

98 Don’t know

IF HAVE A CABLE BROADBAND CONNECTION (CODE 4 ON Q1)

Q4c. Who is the current service provider for your cable broadband internet connection?


1 AAPT

2 Adam

3 Chariot

4 Dodo

5 Exetel

6 iiNet

7 Internode

8 iPrimus

9 Netscape

10 OPTUSnet

11 Primus-AOL

12 TADAust Connect

13 Telstra BigPond

14 TPG Internet

15 Unwired

16 Virgin

17 Vividwireless

18 Vodafone

19 WestNet

97 Other (Specify)

98 Don’t know

IF HAVE ADSL OR ADSL2 OR ADSL2+ BROADBAND CONNECTION (CODE 5 ON Q1)

Q4d. Who is the current service provider for your ADSL broadband connection?


1 3

2 AAPT

3 Adam

4 Chariot

5 Dodo

6 Exetel

7 iiNet

acma | 89

8 Internode

9 iPrimus

10 Netscape

11 OPTUSnet

12 Primus-AOL

13 TADAust Connect

14 Telstra BigPond

15 TPG Internet

16 Unwired

17 Virgin

18 Vividwireless

19 Vodafone

20 WestNet

97 Other (Specify)

98 Don’t know

IF HAVE A DIAL-UP INTERNET LINE/ACCOUNT (CODE 8 ON Q1)

Q4e. Who is the current service provider for your dial-up internet line or account?


1 3

2 AAPT

3 Adam

4 Chariot

5 Dodo

6 Exetel

7 iiNet

8 Internode

9 iPrimus

10 Netscape

11 OPTUSnet

12 Primus-AOL

13 TADAust Connect

14 Telstra BigPond

15 TPG Internet

16 Unwired

17 Virgin

18 Vividwireless

19 Vodafone

20 WestNet

97 Other (Specify)

90 | acma

98 Don’t know

IF HAVE VOIP (CODE 7 ON Q1)

Q4f. Who is the current service provider for your VoIP or Internet phone? IF NECESSARY: VoIP is ‘Voice over Internet Protocol’


1 Dodo

2 Gotalk

3 Hp

4 iiNet

5 Mynetphone

6 Optus

7 Pennytel

8 Skype

9 TPG

10 WestNet

11 AAPT

12 Telstra/Telstra Bigpond

13 Engin

14 Exetel

15 Google/Google Talk

16 Internode

17 Live Messenger/Msn/Msn Hotmail

18 Primus/iPrimus

19 Transact

20 Virgin

21 Yahoo/Yahoo Messenger

97 Other (Specify)

98 Don’t know

IF HAS MORE THAN ONE POST-PAID SERVICE (IF 2 OR MORE CODES FROM Q1 CODES 2/3/4/5/7/8 OR FROM Q4a CODES 1/3/98):

Q5. Are any of these services part of a ‘bundle’ from one service provider?


1 Yes

2 No

98 Don’t know

acma | 91

IF HAVE A BUNDLE (CODE 1 ON Q5):

[ONLY SHOW POST-PAID OPTIONS SELECTED AT Q1]

Q6. Which ones?


1 Fixed line phone or landline or fax line

2 Post-paid mobile phone/mobile phone on a plan

3 Cable broadband connection

4 ADSL or ADSL2 or ADSL2+ broadband connection

5 Mobile broadband or tablet

6 Internet or VoIP phone

7 Dial-up Internet line or account

8 Pay TV

IF HAS MORE THAN ONE POST-PAID SERVICE (IF 2 OR MORE CODES FROM Q1 CODES 2/3/4/5/7/8 OR FROM Q4a CODES 1/3/98):

Q7 Do you receive a ‘single bill’ which includes more than one of these services on that single bill?


1 Yes

2 No

98 Don’t know

IF RECEIVE A SINGLE BILL FOR MORE THAN ONE SERVICE (CODE 1 ON Q7):

[ONLY SHOW POST-PAID OPTIONS SELECTED AT Q1]

Q8 Which ones?






5 Mobile broadband or tablet



8 Pay TV

92 | acma

IF HAVE PREPAID SERVICE (CODE 1 ON Q1 OR CODE 2 OR 3 ON Q4a):

Q9 In the last 12 months, have you ever run out of credit sooner than expected on a prepaid service?


1 Yes

2 No

98 Don’t know

IF HAVE POST-PAID SERVICE (CODE 2/3/4/5/7/8 ON Q1, AND/OR CODE 1 OR 3 ON Q4a):

Q10 In the last 12 months, have you received a bill that was higher than you expected? (This is sometimes called ‘bill shock’)? IF NECESSARY: THIS COULD BE FOR ANY OF THE SERVICES YOU PAY FOR


1 Yes

2 No

98 Don’t know

IF RUN OUT OF CREDIT SOONER ON PREPAID (CODE 1 ON Q9)

Q10a. How many times have you run out of credit sooner than expected in the last 12 months?

TYPE IN ACTUAL NUMBER

CODE 98 FOR ‘DON’T KNOW’

CODE 99 FOR ‘REFUSED’

IF EXPERIENCED BILL SHOCK (CODE 1 ON Q10)

Q10b. How many times have you received an unexpectedly high bill in the last 12 months?




acma | 93

IF EXPERIENCED BILL SHOCK (CODE 1 ON Q10):

Q10c. Thinking about the last time you received an unexpectedly high bill, approximately how much higher than expected was this bill?




IF REFUSED AT Q10c, ASK:

Q10d. Which of these dollar ranges best describes how much higher than expected this bill was?

SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT

1 Up to 49 dollars

2 50-99 dollars

3 100-199 dollars

4 200-499 dollars

5 500-1,000 dollars

6 Over 1,000 dollars

Difficulty paying billsIF HAVE POST PAID (CODE 2, 3, 4, 5, 6, 7, OR 8 ON Q1 AND/OR CODE 1 OR 3 ON Q4a) AND HAVE EXPERIENCED BILL SHOCK (CODE 1 ON Q10):

Q11. When you received your most recent unexpectedly high bill, did you have difficulty in paying it in full by the due date?


1 Yes

2 No

98 Don’t know

IF HAVE POST PAID (CODE 2, 3, 4, 5, 6, 7, OR 8 ON Q1 AND/OR CODE 1 OR 3 ON Q4a) AND HAVE EXPERIENCED BILL SHOCK (CODE 1 ON Q10):

Q12. Not including the most recent unexpectedly high bill, in the last 12 months have you had difficulty in paying a telecommunications bill?

IF NECESSARY: This could be for any of the services you pay for.


1 Yes

2 No

94 | acma

98 Don’t know

IF HAVE POST PAID SERVICE AND HAVE NOT EXPERIENCED BILL SHOCK (CODE 2 OR 98 ON Q10)

Q13. In the last 12 months have you had difficulty in paying a telecommunication bill?

IF NECESSARY: This could for any of the services you pay for.


1 Yes

2 No

98 Don’t know

IF HAD TROUBLE PAYING BILL (CODE 1 ON Q11, Q12 OR Q13):

Q14. How many times have you had difficulty paying a telecommunications bill in the last 12 months?





[CHANGE WORDING DEPENDING ON RESPONSE TO Q14]

Q15. Can you tell me how many months ago that was? [IF HAD TROUBLE PAYING THE BILLS ONLY ONCE, CODE 01 ON Q14] / Can you tell me how many months ago was the most recent time you had difficulty paying a telecommunications bill? [IF HAD TROUBLE PAYING THE BILLS MORE THAN ONCE OR IF DON’T REMEMBER OR NOT DISCLOSED, CODE 02 TO 99 ON Q14]

TYPE IN ACTUAL NUMBER OF MONTHS

CODE 00 FOR ‘THIS MONTH’



acma | 95


[ONLY SHOW POST-PAID OPTIONS SELECTED AT Q1-]

Q16. Which service or services were involved?




3 Tablet (e.g., iPad)



6 Mobile broadband



97 Other [specify]

IF HAD TROUBLE PAYING BILL (CODE 1 ON Q11, Q12 OR Q13)

Q17. Who was the service provider?

MULTIPLE RESPONSE—INTERVIEWER NOTE: DO NOT READ LIST

1 Telstra/Bigpond

2 Vodafone

3 Optus (Optus Mobile/Optus Networks/Optus Broadband)

4 3Mobile/VHA(3)

5 Virgin Mobile

6 TPG

7 iiNet

8 Dodo

9 Mobileworld (Crazy John’s)

97 Other [specify]

99 Prefer not to say

96 | acma


Q18. What were the reasons that you had difficulty paying the bill?

MULTIPLE RESPONSE—INTERVIEWER NOTE: READ OUT LIST

1 The amount due was a lot more than it usually is/it was much higher than expected

3 Lost my job/partner lost their job

4 Experienced a separation or divorce

5 There was an illness or death in the family

6 Something happened that I hadn’t planned for (unspecified)

97 Some other reason [specify]

99 Prefer not to say

IF BILL WAS HIGHER THAN USUAL (CODE 1 ON 18):

Q19. Why was the amount due higher than usual, or higher than what you expected? Was this because….

MULTIPLE RESPONSE—INTERVIEWER NOTE: READ OUT LIST

1 You had missed one or more regular payments?

2 You had used the service more than you usually do, such as downloading more video clips or making more calls?

3 You had used new features, such as using GPS or a new app on your mobile phone, or started to download video clips?

4 You used your mobile phone or data service overseas, on roaming?

5 You didn’t understand the plan or the way you would be charged?

97 Other (specify)

98 Don’t know (DO NOT READ)

acma | 97

IF BILL WAS HIGHER THAN USUAL (CODE 1 ON 18): [EXCLUDE THOSE WHO HAVE ANSWERED Q10b/Q10c]

Q20. Approximately how much higher than expected was the bill that you had difficulty paying?


(CODE 9999 FOR ‘DON’T KNOW’) (CODE 99999 FOR ‘REFUSED’)

IF REFUSED AT Q20, ASK:

Q20b. Which of these dollar ranges best describes how much higher than expected this bill was? SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT

1 Up to 49 dollars

2 50-99 dollars

3 100-199 dollars

4 200-499 dollars

5 500-1,000 dollars

6 Over 1,000 dollars

Contact with service provider

IF EXPERIENCED BILL SHOCK OR DIFFICULTY PAYING A BILL (CODE 1 ON Q10, Q11, Q12 OR Q13):

[WORDING FOR Q21 BASED ON ANSWERS TO PREVIOUS QUESTIONS]

Q21. Thinking about the last time you received an unexpectedly high bill, did you contact your service provider about it? [IF EXPERIENCED BILL SHOCK BUT NOT DIFFICULTY PAYING A BILL (CODE 1 ON Q10 BUT NOT CODE 1 ON Q11, Q12 OR Q13)]

Thinking about the last time you received a bill you had difficulty paying, did you contact your service provider about it? [IF EXPERIENCED DIFFICULTY PAYING A BILL (CODE 1-4 ON Q11, Q12 OR Q13)]


1 Yes

2 No

98 Don’t know

98 | acma

IF CONTACTED SERVICE PROVIDER (CODE 1 ON Q21):

Q22. When did you contact your service provider?


1 When you received [an unexpectedly high bill (IF CODE 1 AT Q10 BUT NOT CODE 1 ON Q11, Q12 OR Q13] [a bill you had difficulty paying [IF CODE 1 ON Q11, Q12 OR Q13]

2 When you received a reminder notice

3 When you received a notice saying the service would be disconnected if payment wasn’t made

4 After the service was disconnected

5 When contacted by a debt collection agency

97 Some other time [specify]


Q23. Did you dispute the amount of the debt or bill with the service provider?


1 Yes

2 No

98 Don’t know

IF DISPUTED AMOUNT (CODE 1 ON Q23):

Q23a. What was the reason you disputed the bill?


1 Didn’t make the calls/use data/send SMS

2 Didn’t understand the plan

3 Was charged a higher rate than agreed

4 Not notified I was over my cap/allowance

97 Other [specify] [DO NOT READ]

IF DISPUTED AMOUNT (CODE 1 ON Q23):

Q24. When you contacted your service provider, did they offer to reduce the amount that needed to be paid?


1 Yes

2 No

acma | 99

98 Don’t know

Credit Management

IF CONTACTED SERVICE PROVIDER (CODE 1 ON Q21):Q24a. When you contacted your service provider about the bill, did you ask for an extension of your bill’s due date?


1 Yes

2 No

98 Don’t know

IF ASKED FOR EXTENSION OF BILL’S DUE DATE (CODE 1 ON Q24a)Q24b. By how much did the service provider extend the date?


1 Less than 2 weeks

2 2 weeks

3 3 weeks

4 4 weeks

5 5-7 weeks

6 8 weeks

7 9-11 weeks

8 12 weeks or more

9 Service provider didn’t agree to an extension

98 Can’t remember/Don’t know


Q25. When you contacted your service provider about the bill, did they negotiate a payment plan with you?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

98 Don’t know

IF CONTACTED SERVICE PROVIDER (CODE 1 ON Q21) AND NEGOTIATED A PAYMENT PLAN OR DON’T KNOW (CODE 1 AND 98 AT Q25)

Q26. Did the provider ask for further information from you about your financial situation? SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

98 Don’t know

100 | acma

IF PROVIDER ASKED FOR FINANCIAL INFORMATION (CODE 1 ON Q26):Q27. What information did they require?

MULTIPLE RESPONSE—INTERVIEWER NOTE: IF NECESSARY READ OUT

1 Documentary/written proof of income and/or expenditure

2 Documentary/written proof of reason of hardship

3 Verbal explanation of income

4 Verbal explanation of reason of hardship

97 Other (specify)

IF PAYMENT PLAN NEGOTIATED (CODE 1 ON Q25):Q28. Did you accept the arrangement?


1 Yes

2 No

99 Not disclosed

IF ARRANGEMENT ACCEPTED (CODE 1 ON Q28):Q29. What was the period of time you were given to pay the amount?


1 Less than 1 month

2 1-2 months

3 2-3 months

4 3-6 months

5 More than 6 months

98 Can’t remember/Don’t know

IF ARRANGEMENT ACCEPTED (CODE 1 ON Q28):Q30. How much was each installment?


1 Less than 50 dollars

2 Between 50 and 99 dollars



5 500 dollars or more

99 Not disclosed

IF ARRANGEMENT ACCEPTED (CODE 1 ON Q28):Q31. Was the service restricted, for example with restrictions on call or data usage, or

suspended?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Restricted, for example with restrictions on calls or on your data usage

acma | 101

2 Suspended

3 No

98 Don’t know

IF ARRANGEMENT ACCEPTED (CODE 1 ON Q28):Q32. Do you consider the arrangement to be reasonable?


1 Yes

2 No

98 Don’t knowIF ARRANGEMENT ACCEPTED (CODE 1 ON Q28):

Q33. Has the payment arrangement been completed?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

98 Don’t know

IF DID NOT CONTACT PROVIDER (CODE 2 ON Q21) OR DID NOT ACCEPT AGREEMENT (CODE 2 ON Q28):Q34. How did you pay the unexpectedly high bill or amount that you had difficulty paying?


1 The amount was paid in full in one payment

2 The amount owing was paid in full over time in installments

3 The amount owing is still being paid in installments

4 The amount owing is still outstanding/has not been paid

97 Other—specify [DO NOT READ OUT]

98 Don’t know [DO NOT READ OUT]

IF HAD DIFFICULTY PAYING A BILL AND PROVIDER DID NOT NEGOTIATE PLAN (CODE 1 ON Q11, Q12, OR Q13 AND CODE 2 ON Q25):

Q35. At the time you had difficulty paying a bill, were you aware of [insert service providers from Q17] financial hardship policy or how your service provider may be able to assist you pay the bill?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

102 | acma

IF AWARE OF POLICY (CODE 1 ON Q35):

Q36. How did you find out about how your service provider may be able to assist you to pay the bill?MULTIPLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Family/friends

2 On the service provider’s website/on the internet

3 TIO

4 T&C

5 Printed materials

6 Financial counsellor or service

98 Don’t know

IF CONTACTED PROVIDER (CODE 1 ON Q21):

Q38. Were you satisfied with the outcome of your contact with the service provider?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

98 Don’t know

IF SATISFIED (CODE 1 ON Q38):

Q39. What was the main reason you were satisfied? SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT

1 Ease of contact

2 Staff understanding or empathetic of my problem

3 Staff explained clearly how they could assist

4 Amount reduced

5 Arrangement suited

6 Quick resolution

97 Other (specify)

98 Don’t know

acma | 103

IF NOT SATISFIED OR DON’T KNOW (CODE 2 OR CODE 98 ON Q38):

Q40. What was the main reason you weren’t satisfied? SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT

1 Difficulty of contact

2 Staff not understanding or empathetic of my problem

3 Staff did not explain clearly how they could assist

4 Slow resolution

5 Changed payment arrangement without my agreement

6 Did not explain consequences of not paying bill on time or not meeting the arrangement

97 Other (specify)

98 Don’t know

IF RESPONDENT CONTACTED SERVICE PROVIDER (CODE 1 ON Q21):

Q41. Were you offered any other solutions to reduce the likelihood of getting bills you couldn’t afford to pay in the future?


1 Yes

2 No

98 Don’t know

IF RESPONDENT WAS OFFERED SOLUTIONS TO AVOID FUTURE BILLS THEY COULDN’T AFFORD (CODE 1 ON Q41):

Q42. What was that? MULTIPLE RESPONSE—INTERVIEWER NOTE: READ OUT LIST

1 Restrictions on calls or data usage

2 Switching to an alternative plan

3 Switching to a prepaid product

4 Suspending the service

5 Tools to monitor your usage expenditure

97 Something else [specify]

IF ACCEPTED ARRANGEMENT (CODE 1 ON Q28):

Q43. Was this the first time that you had entered into an arrangement like this with a telecommunications service provider?


1 Yes

2 No

98 Don’t know

104 | acma

IF HAD DIFFICULTY PAYING (CODE 1 ON Q11, Q12 OR Q13):

Q44. Was the debt listed with a credit reporting agency?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

98 Don’t know

IF DEBT WAS LISTED (CODE 1 ON Q44):

Q45. Did your service provider let you know that it was intending to list your debt before doing so?


1 Yes

2 No

98 Don’t know

IF DEBT WAS LISTED (CODE 1 ON Q44):

Q46. Was the debt that was listed being disputed with the service provider at the time it was listed?


1 Yes

2 No

98 Don’t knowIF EXPERIENCED BILL SHOCK OR DIFFICULTY PAYING A BILL (CODE 1 ON Q10, Q11, Q 12 OR Q13):

Q47. Did you contact the Telecommunications Industry Ombudsman or TIO about the bill that was higher than expected/that you had difficulty paying?


1 Yes

2 No

98 Don’t know

IF CONTACTED TIO (CODE 1 ON Q47):

Q48. Was this because the service provider refused to agree to a payment arrangement?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

98 Don’t know

acma | 105


Q49. Did you contact the TIO because you felt the arrangement offered was unreasonable?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

97 For some other reason [specify]


Q50. What was the outcome of your contact with the TIO?MULTIPLE RESPONSE—INTERVIEWER NOTE: IF NECESSARY READ OUT

1 TIO referred me to the service provider’s resolution department/team

2 TIO facilitated a resolution—mediated between myself and the provider

3 I didn’t follow through with the process

97 Other (specify)

98 Don’t know

99 Outcome not yet reached

Financial adviceIF HAD DIFFICULTY PAYING A BILL (CODE 1 ON Q11, Q12, OR Q13):

Q51. Did you seek independent financial advice about the unexpectedly high bill or bill you had difficulty paying?


1 Yes

2 No

98 Don’t know

IF SOUGHT INDEPENDENT FINANCIAL ADVICE (CODE 1 ON Q51):

Q52. Who did you seek advice from?MULTIPLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Financial counsellor

2 Consumer advocate

3 Family member

4 Friend

97 Other (specify)

106 | acma

IF SOUGHT ADVICE FROM FINANCIAL COUNSELLOR OR CONSUMER ADVOCATE (CODE 1 OR 2 ON Q52):

Q52a. Who referred you to a financial counsellor or consumer advocate?


1 Information from service provider

2 Suggestion of TIO

3 General knowledge

4 Suggestion of family and friends

5 No one referred me, I did it myself.

97 Other (specify)

IF SOUGHT ADVICE FROM FINANCIAL COUNSELLOR OR CONSUMER ADVOCATE (CODE 1 OR 2 ON Q52):

Q52.b What was the advice given?


1 Help on how to approach the service provider

2 Referral to TIO

3 Budgeting advice

97 Other (specify)IF SOUGHT ADVICE FROM FINANCIAL COUNSELLOR OR FROM CONSUMER ADVOCATE (CODE 1 OR 2 ON Q52)

Q53. Was the advice helpful?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

98 Don’t know

IF NEGOTIATED A PLAN (CODE 1 ON Q25):

Q53a. What would have made your experience with the payment arrangement better?RECORD VERBATIM

Use of credit management/spend management tools

acma | 107

IF EXPERIENCED BILL SHOCK OR DIFFICULTY PAYING A BILL (CODE 1 ON Q10, Q11, Q12, OR Q13):

Q54. Before you received an unexpectedly high bill or a bill you had difficulty paying, were you aware of any tools offered by your service provider to help manage the amount you spend on your communications service/s?


1 Yes

2 No

98 Don’t know

IF NOT EXPERIENCED BILL SHOCK OR DIFFICULTY PAYING A BILL (NONE OF CODES 1 ON Q10, Q11, Q12, OR Q13) OR IF NOT AWARE OF TOOLS AT TIME OF BILL SHOCK/DIFFICULTY PAYING BILL (CODE 2 IN Q54):

Q55. Are you aware of any spend management tools offered by your service provider to help manage the amount you spend on your communications service/s?


1 Yes

2 No

98 Don’t know

IF AWARE OF TOOLS (CODE 1 ON Q54 OR Q55):

Q56. Which of the tools available from your service provider do you use?MULTIPLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Restrictions on services of your choice

2 Check your usage on your provider’s website (online usage meter)

3 Notification by text when you nearly reach your limit (SMS alerts)

4 Notification by email when you nearly reach your limit (email alerts)

5 Provider disables your phone when you exceed your limit

6 Provider reduces your broadband speed when you are near your broadband limit

7 A smartphone application that keeps you informed of your usage (service provider app)

8 Provider contacts you when expenditure is unusually high compared to previous bills

9 Check your usage by texting/SMSing your provider

97 Other (specify)

98 Don’t know

99 None

108 | acma

IF NOT USING ANY SPEND MANAGEMENT TOOL (CODE 99 ON Q56):

Q57. Why not?


1 Don’t know how to use them/access them

2 Too difficult to use

3 Don’t have time

4 Don’t care

5 Too expensive

6 Do not use the internet

97 Other (specify)

98 Don’t know

IF USED MORE THAN ONE TOOL (MORE THAN SINGLE CODE ON Q56):

Q58. And what one tool do you use most frequently? ONLY SHOW CODES FROM Q56SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Restrictions on services of your choice

2 Check your usage on your provider’s website (online usage meter)

3 Notification by text when you nearly reach your limit (SMS alerts)

4 Notification by email when you nearly reach your limit (email alerts)

5 Provider disables your phone when you exceed your limit

6 Provider reduces your broadband speed when you are near your broadband limit

7 A smartphone application that keeps you informed of your usage (service provider app)

8 Provider contacts you when expenditure is unusually high compared to previous bills

9 Check your usage by texting/SMSing your provider

97 Other (specify)

98 Don’t know

99 None

acma | 109

IF TOOL USED (CODES 1-97 ON Q56):

Q59. Which services do you use this tool for?MULTIPLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 A prepaid mobile phone

2 A fixed line phone or landline or fax line

3 A post-paid mobile phone or a mobile phone on a plan

4 A tablet (e.g., iPad)

5 A cable broadband connection

6 An ADSL or ADSL2 or ADSL2+ broadband connection

7 Mobile broadband

8 An Internet or VoIP phone

9 A dial-up Internet line or account

99 None of these


Q60. How often would you use [INSERT SPEND MANAGEMENT TOOL FROM Q58]? [WORDING CHANGES DEPENDING ON Q58]

SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT IF NECESSARY

1 Daily

2 2-3 times a week

3 Once a week

4 Once every 2-3 weeks

5 Once a month

6 Less than once a month

7 When contacted by service provider via SMS, email etc.

97 Other (specify)

98 Don’t know


Q61. Do you find the spend management tools you use helpful?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Yes

2 No

98 Don’t know

IF DIDN’T FIND MANAGEMENT TOOL HELPFUL (CODE 2 ON Q61)

Q61a. Why not?

[RECORD VERBATIM]

110 | acma

DemographicsREAD OUT: The following questions will be asked for research purposes only, and will not be used in any way that could identify you. Your answers will help the ACMA better understand the needs of telecommunications consumers. ASK ALL

D1. Which best describes your current living arrangement?SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT

1 Live alone

2 Partner and no children

3 Partner and children

4 Single parent

5 With parents

6 Boarder

7 Shared household or group house

97 Other (specify)

D2. Are you now in paid employment?IF YES, ASK: Is that FULL-TIME for 35 hours or more a week, or PART-TIME?


1 Yes, full-time

2 Yes, part-time

3 No

IF NOT EMPLOYED (CODE 3 ON D2)D3. Are you now looking for a paid job?


1 Looking for paid job

2 Retired

3 Student

4 Non-worker

5 Home duties

98 Can’t say

99 Refused

acma | 111

D4 Would you please tell me the highest level of education you've reached?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 Some, finished primary school

2 Some secondary school

3 Some technical or commercial

4 4th form/intermediate/year 10

5 5th form/leaving/year 11

6 Finished technical or commercial/TAFE

7 Finished or now studying for MATRIC/ H.S.C./ V.C.E./ Year 12

8 Some university/ C.A.E. training

9 Now at university

10 Tertiary diploma, not university

11 Undergraduate degree

12 Postgraduate degree

READ OUT: We will now ask you a few question/s on your current financial situation. Your answers will help the ACMA review the way telecommunications providers and others help people who may have difficulty paying their telecommunications bills in future.

D5. Roughly speaking, into which of the following ranges would your annual household income fall?SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT

1 Under $15,000

2 $15,000 to $19,999

3 $20,000 to $24,999

4 $25,000 to $29,999

5 $30,000 to $39,999

6 $40,000 to $49,999

7 $50,000 to $59,999

8 $60,000 to $69,999

9 $70,000 to $79,999

10 $80,000 to $99,999

11 $100,000 to $129,999

12 $130,000 or more

98 CAN’T SAY

99 REFUSED

112 | acma

IF CAN’T SAY/ REFUSED TO GIVE HOUSEHOLD INCOME (CODE 98 OR 99 ON D5)D6. Well could you tell me whether your HOUSEHOLD INCOME would be over $50,000 or

under $50,000 per year? SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 UNDER $50,000 PER ANNUM

2 OVER $50,000 PER ANNUM

98 CAN'T SAY

99 REFUSED

IF EMPLOYED (CODE 1 AND 2 ON D2)D7. Roughly speaking, into which of the following ranges does your personal annual income

before tax fall? SINGLE RESPONSE—INTERVIEWER NOTE: READ OUT

1 Under $15,000

2 $15,000 to $19,999

3 $20,000 to $24,999

4 $25,000 to $29,999

5 $30,000 to $39,999

6 $40,000 to $49,999

7 $50,000 to $59,999

8 $60,000 to $69,999

9 $70,000 to $79,999

10 $80,000 to $99,999

11 $100,000 to $129,999

12 $130,000 or more

98 CAN’T SAY

99 REFUSED

IF CAN’T SAY/ REFUSED TO GIVE PERSONAL INCOME (CODE 98 OR 99 ON D5)D8 Well could you tell me whether your PERSONAL INCOME would be over $50,000 or

under $50,000 per year?SINGLE RESPONSE—INTERVIEWER NOTE: DO NOT READ OUT

1 UNDER $50,000 PER ANNUM

2 OVER $50,000 PER ANNUM

98 CAN'T SAY

99 REFUSED

acma | 113

D9. Do you speak a language other than English at home?


1 Yes (specify)

2 No

99 Refused

D10. Do you consider yourself a person with a disability? [IF QUESTIONED: ‘By this we mean any condition that has lasted or is likely to last 6 months or more and restricts your life in some way.’]


1 Yes

2 No

99 Do not wish to answer this question

IF EXPERIENCED DIFFICULTY PAYING A BILL (CODE 1 ON Q11, Q12, OR Q13):

D11. After the conclusion of this survey, we will be selecting around 20 people from this study to conduct a further interview, where they will have the chance to discuss their experiences of bill shock and/or difficulty in paying telecommunication bills in more detail. Those who participate in this second interview will go into a prize draw to win the latest iPad.

Are you willing to participate, should you be selected for this second interview?


1 Yes

2 No

READ OUT: OK, the interview is now finished. Thank you for your time and assistance. This market research is carried out in compliance with the Privacy Act and Telecommunications and Research Calls Industry Standard, and the information you provided will be used only for research purposes.

We are conducting this research on behalf of the Australian Communications & Media Authority.

If you would like any more information about this project or Roy Morgan Research, you can phone us on 1800 062 410.

114 | acma

Appendix B—Qualitative research

acma | 115

Appendix B1—Qualitative research methodologyB1.1 Sample structure

Table 8 Sample of in-depth interview respondents

Total Gender Age Reason for difficulty

paying bills

Male Female18–29

30–39

40–49 50+

Bill shock Other reasons

NSW 12 4 8 3 4 3 2 8 4Vic. 4 2 2 1 2 0 1 3 1Qld 4 2 2 1 1 1 1 2 2Total 20 8 12 5 7 4 4 13 7

Rationale for sampleThe main factor used to recruit the respondents was the reasons why they had difficulty paying bills.

Nearly half of those who qualified for the IDIs stated in the quantitative survey (Q18) that the reason was an unexpectedly high bill. To take this into account, just over half of the interviews were conducted with those respondents. The remaining interviews were done with respondents who indicated different reasons for financial hardship.

Recruitment of sampleParticipants were recruited through the quantitative survey. Respondents who reported having experienced difficulty paying their telecommunications bills were asked their availability to be recontacted for further discussion of their experience.

Out of 290 eligible participants (who experienced difficulty paying bills), 218 confirmed their availability to participate in this qualitative component.

B1.2 Discussion guideThe prime objective of the qualitative stage of the research was to provide depth and richness to the reporting of the quantitative results. The IDIs were principally concerned with:> reasons for difficulty paying telecommunication bills> seeking advice and support> contact with the service provider and satisfaction> complaint process and satisfaction> other occurrences of difficulty paying bills beyond the last 12 months> other occurrences of difficulty paying bills beyond telecommunication bills and

comparison.

A discussion guide was developed in close consultation with the ACMA and approved prior to use. The discussion guide is provided in Appendix A2.2.

116 | acma

Appendix B2—Qualitative research instrumentsB2.1 Guidelines for the interviewer

Introduction—Key Components: Introduction My name is _____________________, from Roy Morgan Research.

Thank you Thank you so much for agreeing to participate in this interview today.

Purpose I would like to talk to you about your experience as a telecommunication bill payer, and specifically about any difficulty you might have encountered in paying your bills. Your answers will help the ACMA better understand the needs of telecommunications consumers.

Confidentiality All responses will be kept confidential. Any information you provide that will be used in the report will be completely anonymous and will not identify you.

Duration The interview will take approximately 20 minutes. Process Feel free to share with me your experiences, ideas and honest opinions.

There are no right or wrong answers.Is it ok if I tape this session? I don’t want to miss any of your comments.Please remember that you can decide not to answer specific questions, if they make you feel uncomfortable and that you can terminate the interview at any time.

Incentive By participating in this in-depth interview you will go into a prize draw to win the latest iPad.

Questions Do you have any questions about what we have just talked about? Consent Do you agree to participate in this interview?

Interview Questions— Warm Up Services Can you please tell me which telecommunication services do you currently

pay bills for? (mobile phone, internet) Service providers Who is/are your service provider/s? Services In the survey you said you experienced difficulties paying your [NAME

SERVICE/S] bills. Is that correct? Reasons And what were the reasons you had difficulties paying your bill/s?

(Probe appropriate /necessary)Interview Questions— Reasons for difficulty paying bills

Bill shock How much higher than expected was the bill?Do you know the reason why the bill was so much higher than expected?Is any overspend at all going to cause you financial hardship?Were there any personal circumstances that made it harder for you to pay the unexpectedly high bill? (i.e. loss of job/partner)Were you using any spend management tool at the time (i.e. email or text alerts or service provider app)? If not, why not? If yes, was the tool helpful? If not, why not?

Change in usage Were there any specific circumstances for which you had to use your [NAME SERVICE] more than usual? (i.e. work commitments)Were there any personal circumstances for which you had to use your [NAME SERVICE] more than usual? (i.e. family member in hospital)Were you using any spend management tool at the time? If not, why not? If yes, was the tool helpful? If not, why not?

acma | 117

Overseas Did you understand how the charges were calculated?Were there any personal circumstances for which you had to use your [NAME SERVICE] overseas? (i.e. sick family member or major issues during overseas staying) Did you contact your service provider about international roaming charges before going overseas?Did you receive any warning from your service provider before you went overseas, or at the time you left Australia? Did you receive any warnings after you had incurred significant charges? If you received warnings, did you find them useful?

New features Why did you start using this/these new feature/s?Did you understand how the charges were calculated?Did you understand how much data the [NEW FEATURE] required?Were you using any spend management tool at the time? If not, why not? If yes, was the tool helpful? If not, why not?

Interview Questions—Who did you turn to? Reaction So what did you do when you realised you were not able to pay the bill/ you

were having difficulty paying the bill? Who Who did you first turn to for help?

Why did you decide to talk to [PERSON]? Helpful How was your experience talking to [PERSON]?

Was the advice helpful?Interview Questions— Contact with the service provider

Contact with service provider

Did you contact your service provider to discuss your problem?

Why How did you arrive at the decision to contact your service provider? Explanation from

service providerHow easily did you understand the service provider’s explanation? Did the service provider adequately explain the consequences of not paying the due amount on time? (i.e. disconnection, suspension, credit listing)

Overall experience How was your experience dealing with your service provider? (i.e. compared to dealing with other people who might have helped you/tried to help you).[If experience unsatisfactory] How could the experience have been improved/been better?

Disputed bill Did you dispute the bill? And did the service provider offer any other solution? (egg. spend management tool, reduction in amount owing)How did you find the alternative solutions? Why?

Extension Did you ask the provider to extend the due date?If the provider declined, why did they decline?

Payment arrangement Did the service provider negotiate a payment arrangement with you?What sort of information did the service provider ask to make a payment arrangement?Did they make it easy for you to provide this information?If not, why not?What type of payment arrangement were you offered? What period of time were you given to pay the amount? How much was each instalment?Did you accept the payment arrangement? Why or why not?Do you think that the payment arrangement was reasonable? Why or why not?

Interview Questions—Complaint Launching a complaint Did you, at any time, make a formal complaint about the unexpectedly high

bill or about the payment arrangement? To whom? (i.e. service provider/TIO)

Formal complaint process

Was your complaint, or the way you launched your complaint considered and registered as a formal complaint?If not, why not? What process did you have to follow to launch a formal complaint? Do you consider this process to be reasonable? If not, why not?

118 | acma

Did you eventually follow this process and launch a formal complaint? Why or why not?

Outcome What was the outcome of your complaint? Overall experience How would you describe your experience overall?

[If experience unsatisfactory] How could the experience have been better/improved?

Interview Questions—Overall Experience Time In total how much time did you spend trying to sort out this problem?

Do you consider this to be a reasonable amount of time? Did it have an impact on any other area of your life? (i.e. work life, family)

Monitoring tools Do you currently use any tool to monitor your usage?When did you start using these tools? Only since you had difficulty paying a bill?Have the tools helped? Do you consider these tools helpful?Have you ever experienced any issue with the tools? (i.e. spending not up to date)

Lesson learnt After this experience, do you think you are likely to experience bill shock or difficulty paying your bills in the future?And if this was to happen again, what would you do? Would you do anything different from how you approached this issue the last time? And why?

Interview Questions—Other occurrences Occurrence Have you experienced difficulty paying your telecommunication bills beyond

the last 12 months? Reasons What were the reasons? Were they the same reasons as the last 12

months, or were there different reasons? Pattern How was that experience compared to the latest one? Were there any

differences in the way you were provided assistance?Interview Questions—Comparison with other bills

Occurrence Have you ever experienced difficulty paying other bills? For example gas, water or electricity?

Comparison What did you do? How did you deal with this issue?How would you compare that with your experience with telecommunication services?

Closing—Key Components Additional comments Is there anything more you would like to add? Next steps I will analyse your responses and the responses that other bill payers gave

me. This information will be included in a comprehensive report on Telecommunications Services Customers, Credit Management and Financial Hardship. The ACMA will publish this report later this year. The report will be publicly available, and you will be able to download it from the ACMA website.

Contact info for prize draw

Now, I need to ask you for some contact information for the prize draw. Could you please tell me:

Name and surname Preferred address for mailing the prize Preferred contact number

Thank you Thank you so much for your time today.

acma | 119

Telco customers—credit management and financial …/media/Research and Analysi… · Web...

Documents

Transcript of Telco customers—credit management and financial …/media/Research and Analysi… · Web...