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This week
IN THE NEWS: Telstra to cut 9% of staff, Optus joins 3G text checker, and ACMA to sue Optus over 2022 data breach
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Telecommunications giant Telstra has announced that it will axe more than 2800 jobs – around 9% of its workforce – in coming months. An initial 377 job cuts will occur promptly, with remaining layoffs to be completed by the end of the year. CEO Vicki Brady described the job cuts as part of “ongoing work to reduce our costs”. The company has made assurances that customer service quality will not be impacted by staffing reductions. During the same press conference, Brady also announced that mobile plan price increases would be de-coupled from CPI. It is unclear whether this will benefit consumers, but it does take away certainty about future mobile plan pricing. [ABC]
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On the same day it announced widespread job cuts, Telstra also began communicating to its NBN customers that their broadband plan prices would be adjusted from 1 July 2024. Price hikes on the Basic and Essential plans – Telstra's most popular offerings – amount to $4 to $5 per month, while the Ultimate plan will decrease by $5. Telstra has pointed to wholesale price increases from NBN Co. as justification. As always, ACCAN encourages consumers affected by these changes to shop around for cheaper alternatives that suit their needs. If you are struggling to pay your bill, please tell your telco. New financial hardship protections mean that telcos are obligated to provide support to consumers experiencing financial hardship. [The New Daily]
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Optus customers can now use the 3G shutdown compatibility checker that Telstra rolled out some months ago. Customers can text the number 3 to 3498 to receive confirmation that their device will remain fully functional after the shutdown of 3G networks. It is unclear whether the text service will work for customers of Optus sub-brands / MVNOs, such as Coles Mobile, Amaysim and Dodo. [TechGuide]
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The ACMA has commenced legal action against Optus over alleged ‘failure to protect the confidentiality of its customers’ personal information’ during the September 2022 data breach. It appears the case will hinge on whether Optus failed to meet its legal obligations as per the Telecommunications (Interception and Access) Act 1979. Industry media outlet CommsDay speculated that maximum penalties may reach $133 million. [ITWire]
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The ACMA has announced that Pizza Hut has paid a $2,502,500 penalty for sending more than 10 million text messages and emails in breach of spam laws. Six million messages were sent to customers who had not consented, or had revoked consent to receive marketing, and an additional 4 million messages did not feature an option to unsubscribe. They join a growing list of businesses recently caught breaching spam laws, with more than $15 million paid in spam and telemarketing fines during the last 18 months. [ACMA]
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The Federal Government has established a joint committee to examine the influence of social media in Australian society. Draft and non-exhaustive terms of reference suggest the inquiry will investigate matters including scams, illegal content (such as child abuse and violent material), and whether stronger age barriers should be placed upon platforms. The inquiry is due to report back before the end of the year. [ITNews]
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The National Anti-Scam Centre (NASC) has released its quarterly report for January – March 2024. It found scam losses dropped nearly 11% compared to the last quarter, and that text messages, emails and phone calls remained the top three methods used by scammers to contact consumers. NASC aims to make Australia the world’s hardest target for scammers. This involves cooperation between government, industry, and law enforcement to prevent scams and help Australians avoid them. Read more via the report summary linked above. [NASC]
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Our friends at the Centre for Accessibility Australia last week released their 'Cancellations For All' report, looking at issues consumers face when cancelling prepaid mobile services. Funded by an ACCAN grant, the Cancellations for All project assessed 44 Australian SIM providers and considered how to improve the accessibility of mobile phone plan cancellations for the 4.4 million people in Australia who experience a permanent disability. The project also includes training for SIM providers to help them improve digital access processes. Find out more via the link above. [Centre for Accessibility]
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The NSW government is developing their first Digital Inclusion Strategy. The strategy will look at how everyone in NSW can access, afford and engage with digital technologies, services, and resources – regardless of where they live, their age, race, gender identity and socio-economic status, or if they have a disability. You can have your say via a simple online survey linked above. [NSW Government]
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Southern Phone has paid a $244,000 penalty for failing to meet its complaints handling requirements under the Consumer Complaints Handling Standard. The telco has committed to an independent review of its compliance with complaints handling rules. [ACMA]
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