The Telecommunications Industry Ombudsman received for the year about 198,000 complaints against telecommunication firms in Australia. The complaints were up by almost 25,000 from the previous year's 168,000.

Topping the telcos complained was Telstra which was the subject of 78,950 complaints. It was followed by Vodafone Hutchinson 55,600, Optus 28,323 and iiNet 2,974.

Although Vodafone was second in number of complaints, it logged a 222 per cent increase in complaints, up from the prior year's 11,040.

"Some of the network issues at the start of the year, and the ensuing rise in the number of complaints we received, impacted customer service.... This was difficult for our customers to ensure, so we changed the way we operate to make things easier for our customers," The Sydney Morning Herald quoted Vodafone Hutchinson Director of Customer Service and Experience Cormac Hodgkinson.

On top of Vodafone customer complaints was poor Internet service, said Ombudsman Simon Cohen. He added there were a substantial number of complaints against the telcos over excessive bills running into thousands.

Mr Hodgkinson said Vodafone added 300 call centre staff, improved its self-help Web site and speeded the upgrade to its network infrastructure.

For these complaints, the ombudsman fined the mobile, fixed and broadband phone companies a total of $28 million. The large phone firms shouldered $24 million of the penalties.

To improve the Ombudsman's regulatory oversight and ability to address systemic telco industry issues, the Australian Communications and Media Authority recommended strengthening the latter's supervisory powers.