The Telecommunications Industry Ombudsman (TIO) on Wednesday released its annual report showing complaints about phone and internet providers have reached their highest level in a decade, with Telstra attracting the most complaints.
Customer service complaints have almost doubled in the past 12 months.
The ombudsman found one of the most concerning areas was in mobile phone premium services, with almost 14,000 complaints.
Deputy ombudsman Simon Cleary said many consumers did not realise that when they responded to an advertisement for mobile phone wallpaper, horoscopes, ringtones or competitions, they were subscribing to a service.
"It has been a major concern for us, and it's been an area that consumers have highlighted in other forums as well," Cleary told reporters.
He said some providers used "creative marketing" to advertise their services.
"Marketing can then step over the line from being creative and into a zone which is often misleading.
"We've seen with the mobile premium services complaints, the largest area has been of consumers saying they didn't appreciate they were signing up to premium services."
This year was the first full-year complaints about premium services were recorded.
Industry rules relating to mobile phone providers are currently being reviewed.
Australian Mobile Telecommunications Association chief executive Chris Althaus said the report provided the industry with "valuable feedback".
"The industry accepts and takes on board the Ombudsman's concern about the level and nature of premium mobile service complaints," Althaus said.
"We believe the positive aspects far outweigh the negative. However, we are committed to providing practical advice to help prevent misuse and promote the safe, responsible and affordable use of mobile telecommunications."
Almost 150,000 complaints were received from consumers and small businesses about their telecommunications provider in the past year, compared to 102,463 last year.
Customer service complaints topped the list, increasing by 100 per cent, with over 14,000 recorded.
Ombudsman Deirdre O'Donnell refused to point the finger at any one company, but said the bulk of the complaints relate to the big providers.
"There are people who are well above the industry average, and there are a number who are below," she told reporters in Melbourne on Wednesday.
Telstra and its internet provider Telstra BigPond - the country's biggest telecommunications provider - had nearly double the complaints of its nearest rival, with over 90,000 issues taken to the TIO in the last year.
More than 70,000 complaints related to Telstra, with about 10 per cent unhappy with customer service.
Just under 20,000 complaints related to Telstra Big Pond, with over 4,000 of those about billing.
Its closest rival was Optus - with its three arms, Optus Broadband, Network and Mobile receiving over 40,000 complaints between them.
Federal Communications Minister Stephen Conroy put the industry on notice.
"This level of complaints is clearly unacceptable," Senator Conroy said.
"Consumers have the right to expect that telecommunications services are delivered as expected and that their concerns are dealt with in an efficient and effective way.
"Telecommunications companies need to lift their game."
Complaints about landlines increased by 77.7 per cent to 96,564, while mobile services drew 85,949 complaints, up 58.3 per cent, and internet-related complaints rose 32.3 per cent to 63,741.
Complaints about phone and internet providers to the Telecommunications Industry Ombudsman 2008:
- Telstra received the most complaints - 71,210, with Telstra Broadband receiving another 19,364
- Optus Networks had 20,283 complaints, Optus Mobile had 15,263 and Optus Broadband 6,067
- AAPT 16,879
- Virgin Mobile 8,145
- Vodafone 6,965
- Complaints about landlines increased by 77.7 per cent to 96,564
- Mobile provider complaints up 58.3 per cent to 85,949
- Internet complaints up 32.3 per cent to 63,741
- Customer service was the main reason for complaints, followed by billing and payments, faults, contracts and complaint handling
- Complaints regarding mobile premium services - such as ringtones or horoscopes - reached nearly 14,000.
