Category: News Items
Telephone System Contract warning to small business
Small businesses should be wary of telecommunications contracts offering cheaper services combined with incentives such as phone equipment, laptops or plasma-screen TVs.
The TIO is receiving up to 20 complaints a week from small businesses who say they were misled about, or did not fully understand, the nature and operation of equipment leases bundled with telecommunication deals when they signed up to them. “Small businesses are telling us they are being approached by a sales person who offers a contract for call costs at the same price or less than what they are currently paying. They also say they were offered a handset, plasma TV, laptop or even an overseas holiday at ‘no extra cost’,” Deputy Ombudsman Simon Cleary said. “What small businesses sometimes don’t fully appreciate is that they are signing two separate contracts: one for the phone calls with a telecommunications service provider and the second being a lease of the equipment from a finance company.
There has never been a better time to upgrade your business telephone system
Telstra has made it simple and easy for you to find the ideal communications solution for your business. A Telstra business system provides you with:
A monthly rebate on the cost of your calls
- Monthly rebate of either 10%, 12% or 14% off eligible calls (depending on the plan chosen), which can be used to help offset the cost of your telephone system.
- Breath of service $0
ACCC alleges hidden contracts, misleading conduct in telecommunications
The Australian Competition and Consumer Commission has instituted proceedings in the Federal Court of Australia against 28 parties, including telecommunications companies and their related companies, finance companies and individuals, alleging exclusive dealing (third line forcing) and misleading and deceptive conduct. The bundled services deals business model (see below) to provide telecommunications services and equipment is common in the telecommunications industry. The total dollar value of such deals is estimated to be in the tens of millions. The deals target small business.
The telecommunications and related companies named as respondents in the proceedings are members of the Clear Communications, Axis Telecoms and WorldTel groups and National Telecoms Group Pty Ltd. A complete list of the respondents and their alleged conduct is attached.
It is alleged the telecommunications companies used a “bundled services deals” business model. Under the deals the company would enter into a contract with a small business to provide it with telecommunications services and call credits to cover payments for what some customers thought was “free” equipment. Whereas, it is alleged, the equipment was supplied to customers under rental agreements by finance companies that were not related to the telecommunications companies.The ACCC alleges that the bundled services arrangement is exclusive dealing, in breachof section 47(6) of the Trade Practices Act 1974.It is also alleged that in inducing the small businesses to enter into bundled servicesdeals, the telecommunications companies made some or all of the following misrepresentations:
the equipment provided under the deal is free total charges for telecommunications services will not exceed either a statedtotal charges under the bundled services deal will not exceed a specified amount per monththe only contractual commitment being made by the customer is with the telecommunications company the price of calls will be lower than that of the customers existing providerfixed line services will be ported to the telecommunications company within a short period of time, and/orthe telecommunications company will supply mobile services using the customers existing mobile carrier.The ACCC alleges that statements of that type misled customers in breach of sections52, 53(e) and 53(g) of the Trade Practices Act 1974 and/or sections 12DA(1), 12DB(1)(e) and (12DB(1)(g) of the Australia Securities and Investments Commission Act 2001.
Lg-Nortel release the new IP 50 range of IP telephones systems and a new range of IP Handsets
Aria Technologies are pleased to announce that the iPECS50A & iPECS50B (Phase 5) with the 8000 Series IP handsets are now available.
