Friday, 15 July 2022 08:26

Former telco reseller Red Telecom meted with $450k fine for failing to pay 7 customers


Limni Enterprises, formerly known as Red Telecom, has been fined $450,000 for allegedly failing to pay $63,000 to seven customers.

Its sole director, Nicholas Kontaxis, was also hit with a $115,125 fine.

According to an ARN report, the Australian Communications and Media Authority (ACMA) initiated Federal Court proceedings in December 2019 for failing to comply with the Telecommunications Industry Ombudsman's decision to pay $63,000 to seven customers—six businesses and one individual.

According to the ACMA, in October 2020, Red Telecom's customer base was sold. Then it changed its name to Limni Enterprises and went into liquidation.

Despite this, the Federal Court still maintained there was still strong public interest to impose penalties on the telco reseller and Kontaxis.

ACMA chair Nerida O'Loughlin stressed all telcos supplying services to residential and small business customers in Australia must join the TIO scheme and must comply with the Ombudsman.

“This judgment serves as a reminder to members of the TIO Scheme that there are serious consequences for failing to comply with the TIO Scheme. It also makes it clear that directors who are responsible for ancillary contraventions may receive tough penalties, even where the company goes into liquidation," she said.

“The Court has sent a clear message that failing to comply with a TIO decision will result in penalties that provide a clear deterrent," she added.

According to the same ARN report citing court documents, Kontaxis thought that TIO decisions could be "overturned" and likened it to a parking ticket, saying, "just like you get anything else in life, there is an avenue for appeal."

Justice Melissa Perry, the ruling judge of the case, said Red Telecom demonstrated a lack of respect for the TIO scheme, a lack of consideration for customers, and failed to cooperate with the ACMA until it was too late.

Her Honour considered that there was a culture within Red Telecom that was “antithetical to compliance” and accepted the ACMA’s submission that “the conduct must be discouraged in the strongest possible terms."

This first appeared in the subscription newsletter CommsWire on 14 July 2022.

Read 1227 times

Please join our community here and become a VIP.

Subscribe to ITWIRE UPDATE Newsletter here
JOIN our iTWireTV our YouTube Community here


Thoughtworks presents XConf Australia, back in-person in three cities, bringing together people who care deeply about software and its impact on the world.

In its fifth year, XConf is our annual technology event created by technologists for technologists.

Participate in a robust agenda of talks as local thought leaders and Thoughtworks technologists share first-hand experiences and exchange new ways to empower teams, deliver quality software and drive innovation for responsible tech.

Explore how at Thoughtworks, we are making tech better, together.

Tickets are now available and all proceeds will be donated to Indigitek, a not-for-profit organisation that aims to create technology employment pathways for First Nations Peoples.

Click the button below to register and get your ticket for the Melbourne, Sydney or Brisbane event



It's all about Webinars.

Marketing budgets are now focused on Webinars combined with Lead Generation.

If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site and prominent Newsletter promotion and Promotional News & Editorial. Plus a video interview of the key speaker on iTWire TV which will be used in Promotional Posts on the iTWire Home Page.

Now we are coming out of Lockdown iTWire will be focussed to assisting with your webinars and campaigns and assistance via part payments and extended terms, a Webinar Business Booster Pack and other supportive programs. We can also create your adverts and written content plus coordinate your video interview.

We look forward to discussing your campaign goals with you. Please click the button below.


Kenn Anthony Mendoza

Kenn Anthony Mendoza is the newest member of the iTWire team. Kenn is also a contributing writer for South China Morning Post Style, and has written stories on Korean entertainment, Asian and European royalty, Millionaires and Billionaires, and LGBTQIA+ issues. He has been published in Philippine newspapers, magazines, and online sites: Tatler PhilippinesManila BulletinCNN Philippines LifePhilippine StarManila Times, and The Daily Tribune. Kenn now covers all aspects of technology news for

Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News