As the cost of living continues to rise in Australia, a significant portion of the population is feeling the financial strain.
According to a recent report by the Telecommunications Industry Ombudsman (TIO) and the Consumer Policy Research Centre (CPRC), three in five Australians have experienced financial difficulties over the past year.
The report, which highlights the pervasive nature of these challenges, underscores the growing pressures on households across the nation.
Rising Costs and Financial Strain
The report, based on a nationally representative survey conducted in November 2023, reveals that 76% of Australians faced either financial or non-financial difficulties in the past year.
This statistic paints a stark picture of the widespread impact of rising living costs. Specifically, 41% of Australians experienced high or chronic financial difficulty, dealing with long-term issues across multiple expense areas, while 21% faced moderate or mild financial difficulties.
Financial challenges are not limited to specific demographics but affect a wide range of individuals, particularly those with lower incomes, disabilities, and heavier reliance on telecommunications services.
The survey found that Australians are spending an average of $134 per month on telco services, with some households paying as much as $800 monthly.
Interestingly enough, the data reported was quite similar to our recent Tech X Telco survey, where we revealed the average cost being $129 per month.
Our report also indicated the nearly 7 in 10 Australians were looking at new providers in the next few months, to counter rising costs.
This expenditure is significant given the broader context of rising costs in other essential areas like housing, utilities, and groceries.
Cost of Living Pressures
The soaring cost of living in Australia is forcing many households to make difficult choices.
Essential expenses such as energy, medical treatment, and even groceries are becoming harder to afford.
The report notes that a substantial number of Australians have had to cut back on spending or stop services altogether due to financial pressures.
The need to juggle various expenses is becoming increasingly common, with 31% of respondents stating they rely on telco services daily for work, and 55% using them for essential tasks like searching for information or making payments.
Impact on Telecommunications Services
Telecommunications services, while essential, have become another source of financial strain.
The report highlights that 55% of Australians experienced at least one challenge with their telco service in the past year, a significant increase from 41% in 2021.
Common issues include service dropouts, poor coverage, and slow data speeds.
These problems are exacerbated for those already facing financial difficulties, making the need for reliable and affordable telecommunications services more critical than ever.
Interestingly, despite the high incidence of telco-related issues, 46% of Australians who experienced these challenges did not lodge a complaint.
The report reveals that 40% of those who did not complain believed it would not make a difference, highlighting a loss of trust in the ability of telco providers to resolve issues effectively.
Conclusion
The findings from the TIO and CPRC report provide a sobering insight into the financial difficulties faced by Australians amid rising costs.
With three in five individuals experiencing financial strain, the impact on essential services, including telecommunications, is profound.
Addressing these challenges requires a concerted effort from all stakeholders—telco providers, regulatory bodies, and consumer advocacy groups—to ensure that services remain reliable, affordable, and responsive to consumer needs.
By doing so, we can help alleviate some of the financial pressures on households and restore trust in the telecommunications industry.
Sources -
- CRPC - https://cprc.org.au/report/barriers-telco-dispute-resolution
- TIO - https://www.tio.com.au/reports/barriers-effective-dispute-resolution-telco-industry-consumer-policy-research-centre-report
- Numbeo - https://www.numbeo.com/cost-of-living/in/Sydney
- Tech X Telco - https://techxtelco.com/research/nearly-7-in-10-aussies-are-potentially-eyeing-new-mobile-providers/
