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Australia threatens Vodafone with fine
21 December 2011
Australian authority ACMA warned that Vodafone could face heavy fine if it fails to comply with code
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Australian regulator ACMA has taken action against Vodafone for not complying with the country’s telecommunications consumer protection code during 2010 network problems. The authority has issued two directions to the operator and has cautioned that it is likely to face a fine of $A250,000.
Chris Chapman, chairman of the ACMA, the Australian Communications and Media Authority, said that the directions are aimed at ensuring that “Vodafone remains focussed on improving outcomes for its consumers by increasing the regulatory consequences of any further breach”.
Vodafone's 3G network started developing problems in late 2010, followed by complaints of call drops and internet connection issues.
Chapman added that the directions were also meant to warn Vodafone — formerly Vodafone Hutchison Australia — over its inadequate measures to protect customer privacy, after an investigation revealed that passwords were shared among staff.
Earlier in 2011 Vodafone spent more than $1 billion for a network overhaul in collaboration with Huawei. Chapman acknowledged Vodafone’s “positive changes” but said that “from this point on, if either Vodafone company fails to comply with the TCP code, the ACMA can approach the federal court seeking civil penalties of up to $250,000.”
Vodafone Australia’s chief executive Nigel Dews responded to the regulatory directions saying that said that the company has already started work on enhancing its services to customers.
Dews said: “We have supported the ACMA throughout their thorough and lengthy assessment, and, while we respect the ACMA's view of past events, we haven't waited for their report to tell us what we've needed to do.” GTB
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