The report found living in a remote area can make everyday telco issues harder to solve due to increased wait times for technicians and has recommended that telcos pause charges while customers wait for repairs.
Mobile connectivity remains unreliable, causing potential safety issues during emergencies.
The interruptions can also affect business productivity and community connection.
Limited choice of providers and lack of awareness of available technology can leave customers without alternatives to turn to when services fail.
The Ombudsman has made 12 recommendations for telcos, the Australian Communications and Media Authority and the government.
They include a comprehensive review of the regulatory framework with a focus on place-based disadvantage, compensation for when standards for broadband services are not met and better community education for emergency communications.
“Regional, rural and remote Australians help feed the nation, power industries and keep our diversity thriving, and this is an integral part of what makes Australia great,” Ombudsman Cynthia Gebert said.
“Reliable telecommunications are not a luxury for these communities, they’re essential infrastructure for safety, economic participation and everyday life.”