Releasing the 2005 annual report for the telecoms industry, Pinnock said complaints have risen by a third, with phone companies providing Australia's worst customer service.
This includes selling faulty handsets and not tackling serious billing problems.
The ombudsman handled more than 100,000 separate complaints in the last financial year, from almost 79,000 calls.
Pinnock said an increase in "industry activity" was pushing complaints up in all areas, as new products, services and billing schemes entered the market.
Customer service was a widespread problem, often caused by outsourcing, he said.