More than 50% of telco customers report problems

Telcos are struggling to deliver the quality of service consumers expect, with 56% of internet customers reporting problems in the past two years.

Results of a survey by Consumer NZ and the Commerce Commission show many customers also battle to get issues fixed.

Among internet customers who contacted their telco about a problem, 54% said it took “a lot of effort” to deal with the company.

Consumer NZ chief executive Jon Duffy said the results show “the industry needs to up its game and get the basics of customer service right”.

Duffy said some telcos are managing to do a better job than others.

Of the nine companies rated in the survey, Vodafone stood out for having a higher proportion of problems.

Sixty-six percent of Vodafone’s internet customers and 44% of its mobile customers reported running into issues in the past two years.

Duffy said billing problems continue to dog the telco. One in five of Vodafone’s internet customers reported an issue with their bill.

The two top performing telcos were 2degrees and Skinny, receiving Consumer NZ’s People’s Choice award.

Seventy-two percent of 2degrees’ internet customers and 69% of its mobile customers were very satisfied with the service they were getting.

Skinny (a subsidiary of Spark) rated highest in the mobile category, with an overall satisfaction score of 75%. Skinny customers were also less likely to report problems with the telco’s services.

Duffy said Consumer NZ backed the Commerce Commission’s work to lift standards across the telco industry and ensure customers had access to effective disputes resolution.

Internet service ratings

Overall satisfaction: % very satisfied

• 72% 2degrees
• 70% Skinny
• 67% MyRepublic
• 61% Spark
• 60% Slingshot
• 59% Orcon
• 57% Trustpower
• 56% Vodafone
• 61% Industry average

Mobile service ratings

Overall satisfaction: % very satisfied

• 75% Skinny
• 69% 2degrees
• 68% Warehouse Mobile
• 62% Spark
• 58% Vodafone
• 63% Industry average

About the survey

The survey was carried out in conjunction with the Commerce Commission as part of its “Consumer Telecommunications Survey 2021”. The survey was conducted by Research New Zealand and nationally representative of 2126 New Zealanders aged 18 years and over.

Overall satisfaction reports the percentage of consumers who rated their internet/mobile retailer 8, 9 or 10 on a scale from 0 (very dissatisfied) to 10 (very satisfied). Note: where a respondent used a company for internet and mobile services, they were only asked to rate the retailer once for overall satisfaction.

Details of the survey are available free at consumer.org.nz.

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