Telecommunications Industry Ombudsman: 2013 - 2014 Annual Report
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Marketing and activation of prepaid services

Lyca Mobile aligned the advertised cost of their prepaid services to their recharge options after informal discussions with our Industry Improvement team.  

The consumers’ experience

Jordan bought a SIM from Lyca after seeing an ad for a prepaid $14 option. When she bought her first recharge, she was upset to find out that she could only recharge $20 or $50.

Jordan bought a voucher anyway and followed the activation instructions. She used the service for a month, and when she recharged the following month, her credit ran out after only two days. She called Lyca, and was told she had not activated her plan correctly. It turned out she had to activate her plan every time she recharged as if it was the first time.

What we did

Jordan was not happy with Lyca’s response and made a complaint to the TIO. We noticed that she was not the only consumer with this experience. Our Industry Improvement team contacted Lyca about a potential systemic issue with their recharge options.

Lyca willingly discussed these issues with us. It recognised that offering easy-to-use recharge options was good for their customers.

The results

Lyca changed the activation process to give consumers more information about how to recharge, and created an automatic renewal option for consumers who wanted it. Lyca also changed the payment requirements to include an option that allowed consumers to recharge for the advertised price of $14.