The Australian Communications and Media Authority (ACMA) has initiated Federal Court proceedings against Sydney-based telco Red Telecom Pty Ltd (Red Telecom) and its sole director Nicholas Kontaxis for alleged failure to comply with decisions of the Telecommunications Industry Ombudsman (TIO).
The TIO referred the matters to the ACMA after Red Telecom allegedly failed to pay more than $63,000 to its customers, as required by the TIO decisions.
The ACMA is responsible for ensuring all telcos in Australia join the TIO scheme and comply with decisions made by the TIO.
The ACMA is able to seek Federal Court penalties of up to $10 million for each contravention of telco laws by a corporation and up to $50,000 for each contravention by an individual.
We will not provide any further comment in relation to this matter at this time.