The Australian Communications and Media Authority is unsatisfied with the telecommunication industry's "legendary" poor performance on consumer service and threatened entities to change the regulator's consumer protection codes into mandatory standards.

Chris Chapman, head of ACMA, said the regulator will discuss and review its consumer protection codes to see if there is a need for a "major shake-up" of regulation in the industry.

"I am nailing the authority's colour to the mast. We are not waiting for anyone, anymore," he said.

The ACMA will formally probe its customer protection in the telecommunications industry and will also hold a possible regulatory reform as well with $2 million infringement notices.

Chapman also announced today during a summit his plan for a 'Reconnecting the Customer' campaign to challenge the increasing complaints made by the consumers. Such complaints include overly aggressive smart phone plans, outsourced off-shore help desks and a "Wild West" mentality act.

The chairman said he will personally brief all chief executives of service providers to lend their support in the campaign for lowering the number of complaints.

Communications Minister Stephen Conroy, who was also at the summit, suggested that the ACM may authorize and enforce fines instead of changing its powerless consumer codes.

''Unlike a consumer code, a consumer protection standard will be developed by the regulator, who will need to balance the interests of consumers with those of the industry,'' he said.

Conroy added that companies who failed to comply with the industry standard should pay civil penalties up to $250, 000 while individuals will pay fines up to $50, 000.

Chapman also highlighted problems on SMS services, which resulted in a "myriad" of complaints from consumers. He said a regulatory forum will be helpful to change the regulatory structure and ask entities if they want to be self-regulated or governed by voluntary codes.