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Red Telecom taken to court over alleged $63K payment problem

Comes after alleged compliance failure

Telco reseller Red Telecom has come under fire by the Australian Communications and Media Authority (ACMA) after it allegedly failed to pay more than $63,000 to its customers.

Red Telecom deals with products and services from the likes of Fuji Xerox, Panasonic and Oki in addition to reselling National Broadband Network (NBN) services and providing IT services via Bitlogic.

The telco industry regulator said on 28 January it had initiated Federal Court proceedings against the telco and its sole director due to the company’s alleged failure to comply with decisions of the Telecommunications Industry Ombudsman (TIO).

According to ACMA, the TIO referred the matter to the regulator after Red Telecom allegedly failed to pay more than $63,000 to its customers, as required by the TIO decisions.

While ACMA said it would not provide further comment in relation to the matter at the time of writing, the court challenge comes more than a year after Red Telecom became one of at least seven providers to be handed a formal warning by the regulator.

In August 2018, ACMA issued formal warnings to seven providers so far including Lynham Networks, Vostronet Australia, BMP Australia Group, Central Connect, MyRepublic and Peak Connect, in addition to Red Telecom.

According to ACMA, Red Telecom, MyRepublic and Peak Connect were formally warned for breaching clauses 9.1.1(b) and 9.4.1(a) of the Telecommunications Consumer Protections Code (TCP Code). 

Clause 9.1.1(b) requires providers to register with Communications Alliance, while clause 9.4.1(a) required providers to submit compliance documents to Communications Compliance Ltd by a specified deadline in 2017.