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Telcos give $1m back for delays

While Optus and AAPT improved their performance on previous years when it came to getting connected, new connection service levels at Telstra have gone backwards.

But it was a different story for quick repairs, where AAPT's performance declined even as the industry's two heavy hitters made gains.

The figures are contained in an annual report card from the Government's telecommunications watchdog, the Australian Communications and Media Authority, which oversees minimum service obligations for phoneline repairs and new connections for the three carriers.

The telcos are given a set number of days to activate new connections and repair faults in home and business phones, and are forced to pay compensation to customers if they exceed those time limits.

Acceptable time limits vary according to how close the customer is to a metropolitan centre and the nature of the problem.

They generally range from one to three days for faults and up to 20 days for new connections.

The data shows Telstra's reliability in meeting the connections target dropped to 90.3 per cent for 2008-09  down from 92.8 per cent a year earlier.

By comparison, Optus' performance rose to 96 per cent for the year and AAPT rose to 93.1 per cent.

For fault repairs, Telstra's result was 90.5 per cent, compared with 88.8 per cent the previous year, while Optus was slightly better at 90.6 per cent and AAPT at 93.9 per cent.

Customer compensation for late repairs or connections is $14.52 for fewer than five days, and $48.40 for fewer than six days and beyond, while late or missed appointments also trigger a $14.52 penalty.

Telstra dominates the market in home and business connections, accounting for 6.3 million of the 7.4 million services covered by the customer service guarantee.

Telstra spokesman Craig Middleton said the company was determined to be one that was easy to do business with.

"It's true that our performance during 2008-09 wasn't as strong as we would have liked, but improving customer service is one of our top priorities," he said.

Optus customer care director Austin Bryan said his company was "encouraged" by the data. "Optus continues in its dedicated efforts to lead in customer experience," he said.

All up, more than 200,000 customers were entitled to compensation during 2008-09.

Among priority assistance customers  people who are sick or elderly and so are entitled to rapid repairs  Telstra dipped below the 90 per cent threshold across the year for the first time for connections, though it performed better for repairs.

The figures also show the number of payphones declined by 12.8 per cent to 39,328 at the end of June.

Telstra's rate of decline ran at about a third of the pace for those phones owned by other companies.