The report, 'Keeping connected: Experiences of telco consumers in financial hardship,' is informed by a review of over 900 TIO complaints about financial hardship received between 1 April 2024 and 30 March 2025. This period marks the first full year since the introduction of the Telecommunications (Financial Hardship) Industry Standard 2024.
The TIO's analysis of complaints reveals how telcos are failing consumers who are experiencing vulnerability, with some rejecting simple requests for help such as short payment extensions or minor variations to payment plans. Consumers also reported feeling pressure to accept payment plans that were inflexible or they felt they could not afford.
Concerningly, consumers talked about prioritising their phone or internet bills over other essentials like rent or food due to concerns about being disconnected. Some people reported seeking help before they missed payments, only to be turned away by telcos who said they could not help until payments were officially overdue.
Telco errors were also identified as causing or exacerbating financial hardship in some cases. People raised complaints with the TIO when telcos withdrew more money than expected via direct debit, or processed payments on incorrect dates - leaving people unexpectedly short on funds for essentials.
Telcos contacted by the TIO as part of this review indicated increased numbers of customers seeking financial hardship support over the past year. Telcos suggested drivers behind the rise could be ongoing cost-of-living pressures and more people asking for support following the introduction of the new financial hardship rules.
As stated by Ombudsman Cynthia Gebert:
"Access to phone and internet service should never be a luxury, it is an essential service that is vital to our everyday life. The consequences of losing access to your phone and internet can be serious, it can lead to people losing work and being unable to access critical support. From there, things can continue to spiral. Losing income and support services can compromise people's food security, safety and health."
"Insights captured in this report confirm telcos need to do more to meet their obligations and support people struggling financially, or they risk being part of the problem and causing further harm to people who are already at risk."
"People may be just managing their basic living expenses like food, rent, and petrol, and be one unexpected phone bill or life event away from falling into hardship. It's at these critical moments when accessing the support you're entitled to from your telco that are more important than ever so you can manage your bills and stay connected."
"What we're hearing from consumers about financial hardship is likely just the tip of the iceberg. We want people to feel confident that when they reach out to their telco for the help they are entitled to, they'll get the support they need that is right for their circumstances. This isn't optional, the rules are clear that telcos must do this."
"Telcos need to actively rebuild trust with their consumers, and prioritise protecting consumers who are experiencing, or at risk of, financial hardship. We urge telcos to embed the flexibility and understanding that must be part of the way you do business when you provide an essential service to the community."
