A free dispute-resolution service says there is a “new normal” of high complaints against phone and broadband providers.

The Telecommunications Dispute Resolution service (TDR) fielded 1925 complaints in the second half of last year.

“This is on par with the same period in 2022 when 1921 consumers raised a complaint with TDR and almost nine per cent higher than the first six months in 2023 where 1770 Kiwis got in touch with us for assistance resolving a phone or internet issue,” TDR chairman Barry Jordan said.

“Complaint and dispute inquiry volumes are remaining consistently high – these levels seem to be the new normal,” Barry said.

The slightly brighter news: the free dispute service was able to resolve 1781 of the 1925 complaints - a 19 per cent better hit rate than the previous period.

In mobile, the main contenders were closely packed, but 2degrees was most groused-about, with 0.52 complaints per 10,000 customers, followed by One NZ (0.48) and Spark (0.35).

In broadband, 2degrees topped the dispute chart, with 5.57 complaints per 10,000 customers, followed by One NZ (1.48) and Spark (1.43) and Mercury (0.8).

‘Under stress’

The TDR’s latest report arrives at a time when all of the telcos have been restructuring - slimming staff numbers but also upgrading online self-service options and other digital support.

“We’ve been hearing anecdotally that customer service at the moment is under stress and while these numbers in this report are for issues that progress to dispute, they are an indicator,” Technology Users Association of NZ (Tuanz) head Craig Young told the Herald.

“We’re never happy to see an increase in complaints so this is a good reminder to providers that they need to continue to place a priority on their customers’ experience.”

2degrees responds

A 2degrees spokesman told the Herald, “These figures are reflective of change in our call centre from mid-last year meaning initial inquiries reached the TDR that would normally be resolved internally, given the nature of the issue. Thankfully, resourcing and process change has improved customer service and brought this number down in the subsequent quarter and we are confident this will continue to be positively reflected in the next report.”

2degrees’ results include several brands that have come on board in mergers and acquisitions, including Orcon, Slingshot, Flip, 2Talk and MyRepublic Broadband.

Billing generated 967 complaints over the six months, or just over half the total.

Next was customer service, with 300 complaints (15.6 per cent) and faults with 247 complaints (12.8 per cent).

Complaints about network performance (106) and transferring between providers (57) were a lot lower.

The withdrawal of copper line service in areas covered by fibre generated just eight complaints, notwithstanding the Commerce Commission’s recent High Court action lodged against One NZ for alleged ongoing “endangering” breaches of the Copper Withdrawal Code, which requires six-month notification, and a “burner” mobile or battery backup if a power cut will leave a user high-and-dry. One NZ said technical breaches had been rectified.

Spark’s numbers include its budget-priced brand Skinny and BigPipe.

Mercury’s rival in bundling power and broadband, Contact, is not a member of the TDR.

Contact earlier told the Herald its customers were covered by Utilities Disputes - the power sector’s equivalent to the TDR, which can also field barneys about broadband.

Elon Musk’s Starlink has so far snubbed overtures to join the TDR.

The scheme only collects data on retail telcos, so there are not stats for issues generated by network providers like Chorus.

The TDR is funded by the telecommunications industry, but has an independent board and executive, and is subject to governance reviews by the Commerce Commission.

Spark has been asked for comment.

One NZ had no comment.

Chris Keall is an Auckland-based member of the Herald’s business team. He joined the Herald in 2018 and is the technology editor and a senior business writer.

This article was originally published on the NZ Herald here.