Telcos and communication issues
Most of us can’t live without them, but many New Zealanders are struggling to live with their telecommunications providers, too.
Telecommunications firms were the source of the majority of complaints to the Commerce Commission in its most recent financial year.
More than 600 complaints were registered about telcos, compared to 403 about domestic appliances, which came in a distant second.
Of all the traders in the country, Vodafone and Spark generate the most Fair Trading Act complaints.
Jennifer Mahoney, client director of Telecommunications Disputes Resolution (TDR), the scheme that deals with sector complaints, said billing was the No 1 cause of complaints she saw.
If you want to avoid getting a bad deal from your provider, there are a few things to watch out for.
Know what you’re getting from the start
Consumer NZ head of research Jessica Wilson said providers were keen to advertise that they had the best or fastest service, but it did not always live up to expectations.
Make sure you understand what your broadband speed or phone service will be like at your house, given your usage habits – not what would be the best-case scenario.
Vodafone was in the gun this year when the Commerce Commission said it was not making clear that its Fibre X service was not run on fibreoptic cables, and would not deliver the same speeds that consumers expected when they heard the term ‘‘fibre’’.
Wilson said consumers often complained when they discovered fees they were not expecting – for example, to cover the cost of a required new modem, or if they wanted to pay by credit card.
Customers who were cold-called had the right to change their minds within five days, and cancel the deal.
Check your term
It’s becoming increasingly common for providers to sign people up to fixed terms.
‘‘Most companies are offering incentives to join them – free video on demand or a free modem. But then they want to keep you for 12 months,’’ said Craig Young, chief executive of telecommunication users association TUANZ.
‘‘If you cancel in that period you can get some serious charges.’’
Young recommended adding a diary note to check again at the end of the fixed term to see if the offer was still the best on the market. Sites such as Broadband Compare make it easier to see what’s available.
Watch out for freebies
Wilson said the incentives dangled to get customers to sign up often came with a catch. A customer would have to do something else, or meet a particular contract condition, to access them.
The Commerce Commission took action last month after Spark sent letters offering new customers a $100 account credit for subscribing to a particular broadband plan but allegedly failed to mention the offer could only be redeemed by phoning Spark. The commission said it created the impression that customers signing up online would receive the credit, when they would not.
Monitor your bills
Don’t just set and forget. Check your bills each month so you know what you are paying for. Keep an eye out for any charges for breaching a data cap or additional purchases you were not aware of.
In another TDR case, a customer exceeded his mobile data allowance and paid extra charges of $2000.