Consumers struggling with the switch to the National Broadband Network could be left without the ombudsman's help as part of a government proposal to restrict the Telecommunications Industry Ombudsman to "complex" complaints.

Handing some of the TIO's functions to a new External Dispute Resolution body is one of several proposals in a new Consumer Safeguards paper released on Thursday, which suggests limiting the ombudsman to complaints that customers and providers are deemed unable to resolve themselves.

There may be substantial changes to the way Australians' telco complaints are handled. Credit:Glenn Hunt

Telcos are charged by the ombudsman for every complaint made by a customer to the TIO, even when the issues are referred back to the provider for resolution. This method of funding is a common gripe in industry circles, sources say, with some telcos describing it as "inefficient" and "unfair".

Consumer advocates, however, believe early access to the ombudsman is a powerful tool for customers.