Layla UsmanYOUR TELCO BILL ARRIVES EVERY MONTH — BUT ARE YOU ACTUALLY CHECKING IT?Most Australian businesses pay their telco invoice without a second glance. Here’s how to know if you’re one of the thousands being quietly overcharged — and what to do about it.
Telco overbilling isn’t a fringe issue in Australia. It’s systemic. The Australian Communications and Media Authority (ACMA) fined Telstra $3 million and forced a $21 million customer refund after finding they’d billed over 6,500 customers — most of them small businesses — for inactive services across an 11-year period. That’s one provider. One investigation.
And it’s not just the big players. The TIO received over 56,000 complaints in 2023–24, with service and equipment fees making up nearly 34% of all issues raised. Most businesses never check their bill closely enough to notice.
| $21Mrefunded by Telstra after overcharging small businesses for inactive services | 34%of all TIO complaints in 2023–24 related to service & equipment fees | 56,718complaints lodged with the TIO in 2023–24 | 30%of complaints left unresolved after first referral back to the telco |
The 7 warning signs your telco is overcharging you
| Sign 1 You’re paying for lines or services nobody uses |
| Ghost services are one of the most common forms of telco overbilling. Phone lines, internet connections, or cloud services set up once — for an old location, a departed employee, a trial feature — and never cancelled. Telstra’s $21 million refund was almost entirely driven by this: customers billed for inactive internet services. If your headcount or premises have changed and nobody audited the bill, you almost certainly have ghost services.🚩 Red flag: Your number of billed services doesn’t match your actual staff or sites |
| Sign 2 Your contract auto-renewed without your knowledge |
| Most business telco contracts contain an auto-renewal clause buried deep in the terms. When your original term ends, rather than alerting you, the contract silently rolls over — often for another 12 or 24 months — at the same or higher rate. Complaints to the TIO about providers varying contracts or plans increased 20.5% in the most recent reporting period. These aren’t accidents. They’re features of a billing model that relies on inertia.🚩 Red flag: You can’t remember when your contract started or when it ends |
| Sign 3 You’re renting equipment that costs more than it’s worth |
| Many business telcos bundle equipment into a separate rental or lease agreement, often financed through a third party like Grenke. You pay monthly for handsets and hardware you’ll never own. Over a 48-month term, the total rental cost can easily be two or three times the actual purchase price. And because the equipment lease is a separate agreement from the service contract, exiting one doesn’t cancel the other.🚩 Red flag: You’re paying a separate monthly amount to a finance company for “equipment” |
| Sign 4 Your bill contains fees you don’t recognise |
| Pull up your last three telco invoices. Can you explain every line item? Common mystery charges include: “subsequent installation fees” (a recurring charge), cloud service fees for services nobody signed up for, network access fees that duplicate your plan cost, and admin fees that appear and disappear month to month. If you can’t link every charge to a specific service you actively use, that’s money leaving your account with no justification.🚩 Red flag: Your invoice has more than 6 line items and you can only explain 3 of them |
| Sign 5 Your plan hasn’t changed but your bill keeps creeping up |
| You signed a contract at a set monthly rate. But your bills over the last 12 months don’t match that number. Telcos routinely apply CPI increases, plan adjustments, and fee changes that are technically permitted under broad contract language — but rarely highlighted to customers. Many businesses are paying 15–25% more than their original quoted rate without ever being directly notified.🚩 Red flag: Your current monthly bill is higher than what you remember signing up for |
| Sign 6 You were billed after cancelling or switching providers |
| Complaints about telcos failing to cancel services when requested were up 7% in the TIO’s most recent quarterly data. You’ve made the decision to leave, notified your provider, and they keep billing anyway. This is especially common when porting phone numbers between providers, where a service can remain “active” and billed in the old provider’s system even after your new provider has taken over.🚩 Red flag: You switched providers but still received a bill from your old one the following month |
| Sign 7 Your support calls go nowhere and disputes are ignored |
| In 2024–25, over 4,300 TIO complaints came from consumers whose telco had delayed or failed to act upon their complaint. The TIO also found that 15 telcos had not informed customers of their right to escalate disputes — a breach of the Complaint Handling Standard. A telco that makes it deliberately difficult to dispute a bill is banking on the fact that most businesses will eventually give up and keep paying.🚩 Red flag: You’ve raised a billing issue and received no written resolution after 14 days |
| ⚠ KNOW YOUR RIGHTSUnder the Telecommunications Consumer Protections (TCP) Code and Australian Consumer Law, your telco must bill accurately, notify you of price changes, and maintain a clear complaints process. If they fail to resolve a dispute, escalate for free to the TIO at tio.com.au or call 1800 062 058. |
What to do right now: your 5-minute bill audit
Open your last invoice and work through this checklist:
☐ Count the number of billed services. Does it match your actual number of staff and locations?
☐ Find your contract start date. Has it auto-renewed? Do you know when it next renews?
☐ Identify every line item. Can you explain what each one is for?
☐ Check for a separate equipment rental or lease payment (often to a different company like Grenke).
☐ Compare today’s bill to the one from 12 months ago. Has it increased? Were you notified?
✔ THE BOTTOM LINE If you found anything you couldn’t explain, that’s money you’re paying for nothing. A proper telco audit typically takes less than 30 minutes with the right provider — and businesses regularly uncover savings of 20–40% on their current spend.
Why Broadconnect customers don’t have this problem
We built our business model to be the opposite of the overcharging playbook:
- Transparent, itemised billing — every charge explained, every month
- No equipment rental traps — our Hosted Phone System runs in the cloud, nothing to lease
- No silent auto-renewals — we notify you before any contract rollover
- 100% Australian-based support — real people who pick up the phone and actually resolve issues
- Free bill review — we’ll audit your current telco spend and show you exactly where you’re being overcharged
| Think you’re being overcharged? Let’s find out.Send us your last three invoices and we’ll do a free, no-obligation audit. Most businesses find savings within 20 minutes.Call 1300 880 330 | broadconnect.com.au |
Frequently asked questions
How do I find out if I’m being overcharged by my telco?
Start by auditing your last 3 invoices. Look for line items you can’t explain, services you don’t use, and compare the total to what you originally signed up for. If your bill has crept up without notification or you’re paying for ghost services, you’re likely being overcharged.
Can I get a refund if my telco has overcharged me?
Yes. If your telco has billed you for services not rendered or has charged more than your contract allows, you’re entitled to a refund under Australian Consumer Law. Start by raising a formal written dispute. If unresolved within a reasonable timeframe, escalate to the TIO at tio.com.au.
What is a ghost service and how do I identify one?
A ghost service is a phone line, internet connection, or software subscription your telco continues to bill for even though it’s no longer active. Check whether the number of services on your invoice matches your actual staff count, sites, and active phone numbers.
My telco won’t resolve my billing dispute. What can I do?
Escalate to the Telecommunications Industry Ombudsman (TIO). It’s free, independent, and has authority to investigate billing disputes and order refunds. Call 1800 062 058 or lodge online at tio.com.au. Escalate if your dispute hasn’t been resolved within 15 business days.
Is it legal for my telco to auto-renew my contract without telling me?
It depends on your original contract. Most business telco contracts permit auto-renewal if outlined in the terms — but under the TCP Code, providers must give reasonable notice before a contract rolls over. If you weren’t notified, raise a formal complaint with your provider and the TIO.
How much could I save by switching to a better telco?
Based on businesses Broadconnect has audited, most are overpaying by 20–40% on their current telco spend. Savings come from removing ghost services, eliminating equipment leases, and moving to a cloud-hosted phone system with transparent pricing.
Statistics sourced from ACMA and TIO published reports. This article is for informational purposes and does not constitute legal advice. To dispute a telco charge, contact the Telecommunications Industry Ombudsman at tio.com.au. Broadconnect is an Australia-wide business phone and internet provider — call 1300 880 330 or visit broadconnect.com.au.