Government regulators announced on Tuesday it would initiate an independent probe into the telecommunications industry following an upsurge of customer complaints submitted before the Telecommunications Industry Ombudsman (TIO) over the last few years.

At a Sydney press conference, Australian Communications and Media Authority (ACMA) chairman Chris Chapman said the inquiry would focus on the poor industry response to customer complaints, particularly on services.

He said, "The poor complaint handling of the industry is legendary. What spurred this increase is a matter of conjecture -- overly aggressive smartphone plans, an inevitable Wild West mentality when new opportunities spring up, outsourced offshore help desks, and perhaps greater customer scrutiny of their bills as they became more cautious in the economic downturn."

At the same time, Chapman said the probe will look into the existing regulations and determine if there is a need to restructure existing policies and introduce industry standards in handling complaints.

The investigation could further recommend the introduction of legislation into the telecoms regulatory regime. This could also include giving additional powers to ACMA, including the authority to impose multi-million dollar infringement notices on the spot.

Records from the TIO showed a 130% jump in complaints filed last year, mostly dealing with handling and a 118% rise in complaints about customer service. Complaints from consumers and small businesses about phone and internet service providers also rose 5% during the period, records showed.

"Many would share the ACMA's concern about whether the current arrangements which underpin telecommunications consumer protection are really effective in dealing with the issues that concern consumers most," Chapman said.

He pointed out that the sheer number of complaints, ranging about 900 every working day, reflects poorly on the telecoms industry.

Government regulators announced on Tuesday it would initiate an independent probe into the telecommunications industry following an upsurge of customer complaints submitted before the Telecommunications Industry Ombudsman (TIO) over the last few years.

At a Sydney press conference, Australian Communications and Media Authority (ACMA) chairman Chris Chapman said the inquiry would focus on the poor industry response to customer complaints, particularly on services.

He said, "The poor complaint handling of the industry is legendary. What spurred this increase is a matter of conjecture -- overly aggressive smartphone plans, an inevitable Wild West mentality when new opportunities spring up, outsourced offshore help desks, and perhaps greater customer scrutiny of their bills as they became more cautious in the economic downturn."

At the same time, Chapman said the probe will look into the existing regulations and determine if there is a need to restructure existing policies and introduce industry standards in handling complaints.

The investigation could further recommend the introduction of legislation into the telecoms regulatory regime. This could also include giving additional powers to ACMA, including the authority to impose multi-million dollar infringement notices on the spot.

Records from the TIO showed a 130% jump in complaints filed last year, mostly dealing with handling and a 118% rise in complaints about customer service. Complaints from consumers and small businesses about phone and internet service providers also rose 5% during the period, records showed.

"Many would share the ACMA's concern about whether the current arrangements which underpin telecommunications consumer protection are really effective in dealing with the issues that concern consumers most," Chapman said.

He pointed out that the sheer number of complaints, ranging about 900 every working day, reflects poorly on the telecoms industry.