Telstra fined $500k for urban phone line delays Fined: Telstra paid a $510,000 penalty. Photo: Josh Robenstone Telstra has been fined half a million dollars by the communications watchdog for failing to connect new telephone lines within regulated time limits. The Australian Communications and Media Authority (ACMA) revealed on Friday that the telco giant paid a $510,000 penalty after missing two benchmarks in its minimum service regulations, known as the customer service guarantee (CSG), during the 2012-13 financial year. Telstra also received an official warning for failing to properly follow the consultation process when removing eight public payphones. A spokesman for Telstra said it accepted the ACMA's finding. "Although we met all the regulated CSG benchmarks for the faults we fixed last year, we narrowly missed the target for new connections in urban areas and remote areas," he said. Last year, we faced unprecedented damage to our network from natural disasters. We fixed more than 1 million faults for our customers and a number of events, such as the Queensland floods, Tasmanian fires and Warrnambool Exchange fire, placed great strain on our network and resources across the country. The ACMA issued the fine after Telstra missed its target of connecting 90 per cent of new telephone lines within regulated time frames, in breach of its obligations under the Telecommunications Act. In 2012-13 it achieved 88.6 per cent of the target in urban areas and 89 per cent in remote areas. The fine was issued for missing the first hurdle, and Telstra has received an official warning for missing the target in remote areas. "In deciding to issue the infringement notice and the formal warnings, the ACMA took into account Telstra's positive and early responses and its open engagement with the ACMA," the authority noted. The ACMA also took into account that 2012-13 was marked by extreme weather events which affected Telstra's fixed line network, particularly in remote areas. ACMA chairman Chris Chapman said this was the first fine issued under new telecommunications regulations introduced in early 2011. Mr Chapman said he could have pursued Telstra through court for civil penalties, but decided on an infringement notice. The size of the penalty was set by law. "There are lesser sanctions that could have been imposed, but I felt that there was sufficient consumer detriment to warrant the infringement notice," Mr Chapman told Fairfax Media. The "sheer number" of consumers affected by the delay - about 4000 - cemented his decision. "It underscores the seriousness with which the CSG is to be taken," Mr Chapman said. My impression of Telstra is that they have taken it very seriously ... I would be very, very surprised if Telstra was to come up short on this benchmark again. Under the guarantee, Telstra must connect phones within two days of a request if a phone line was already present, five days if a new line could be laid easily or 20 days if Telstra has to find additional capacity on existing infrastructure. The ACMA noted that Telstra's resources were stretched in 2013 because of severe weather, which diverted technicians to damaged regions. A study by Fairfax Media found the number of days covered by Mass Service Disruption (MSD) notices issued by Telstra in 2013 was significantly higher than previous years, primarily due to interstate staff redeployments. Customers were not eligible for compensation if Telstra issued a MSD, nor did days covered by an MSD contribute to the guarantee hurdles. There was a 40 per cent increase in complaints about delays for fixed telephone lines to the Telecommunications Industry Ombudsman last financial year, which the TIO attributed to the weather damage and Telstra staff shortages. The guarantee only covers fixed telephone connections, not internet connections. Meanwhile, Telstra failed to properly follow the consultation process when it applied to remove eight payphones. Mr Chapman said the breaches were technical, such as closing the consultation process early or failing to make notices prominent enough on its website. The Telstra spokesman confirmed it did engage with the community, as required by law, "however did not strictly comply with all of the required steps." While we believe that there has been no customer detriment, we take our regulatory obligations seriously and have committed to take a number of other steps to strengthen compliance with the payphone determinations. Chief executive of the Australian Communications Consumer Action Network, Teresa Corbin, welcomed the ACMA's enforcement action. "We are concerned at the number of people who experienced delays in getting a landline phone connected over the last financial year and we expect a better performance from Telstra from now on," she said. ACCAN encourages the ACMA to keep Telstra up to the mark and we would expect that Telstra take steps to ensure these frustrating delays aren't repeated in 2014.