Telcos are copping heat for leaving customers high and dry when money’s tight, according to a new report from the Telecommunications Industry Ombudsman (TIO).

The Keeping Connected: Experiences of telco consumers in financial hardship report digs into more than 900 complaints made between 1 April 2024 and 30 March 2025. It’s the first full year of data since new financial hardship rules kicked in for the telecommunications sector.

The findings are a bit of a shocker. The hardship rules aim to ensure telcos provide flexible and fair payment support, but the TIO found numerous instances where this didn’t occur. Some customers reported that small requests, like short payment extensions, were given the cold shoulder. While in other cases, customers were pressured into payment plans they knew they couldn’t stick to.

Skipping rent to pay the phone bill

Even worse, some people told the TIO they’d skipped paying for essentials like rent or groceries to keep the phone or internet on, too scared of being cut off. Others tried to get help early, before missing a bill, only to be told to come back once they were already in the red.

These weren’t the worst of the stuff-ups. Complaints included telcos taking out more money than authorised via direct debit, or processing payments on the wrong date, leaving people unexpectedly skint for fuel, food or rent.

Ombudsman Cynthia Gebert says this just doesn’t cut it.

“Access to phone and internet service should never be a luxury. It is an essential service that is vital to our everyday lives. The consequences of losing access can be serious. It can lead to people losing work and being unable to access critical support. From there, things can continue to spiral,” she says.

“Telcos need to actively rebuild trust with their consumers, and prioritise protecting consumers who are experiencing, or at risk of, financial hardship. This isn’t optional – the rules are clear that telcos must do this.”

The TIO says more people are asking for hardship help than last year, with telcos blaming cost-of-living pressures and more awareness of the new rules.

Know your rights

For small business owners, the message is simple: you’ve got rights, and you don’t have to wait until your service is on the chopping block before you speak up. The new hardship rules require your telco to offer a range of support options before they start talking collections or pulling the plug.

That means if you’re facing a cash flow crunch, even a short-term one, you can ask for flexibility early. No one wants to be stuck on hold for an hour only to be told to “call back when you’ve missed a payment”, so get in early and get it in writing.

And while you’re at it, keep a paper trail. Write down dates, amounts, and the names of anyone you speak to. If your telco says no or treats you unfairly, you can take it to the TIO. The complaints process is free, and their rulings are binding on most providers. In other words, you’ve got more pull than you might think.

Why speaking up matters

Gebert says small business owners, just like households, are often only one unfortunate event away from hardship.

“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 that accessing the support you’re entitled to from your telco is more important than ever – so you can manage your bills and stay connected.”

With phone and internet now as essential as power and water for running a business, the TIO is urging telcos to lift their game.

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