‘Conflict of interest’: ACMA chief Nerida O’Loughlin grilled on watchdog’s failures during Optus triple-0 outage
The scope of the federal watchdog’s investigation into Australia’s second largest telecommunications company has expanded, ACMA’s chief has revealed.
Australia’s telco watchdog has been scrutinised over a potential “conflict of interest” during a grilling over the fatal Optus triple-0 outage.
Fronting an estimates hearing on Tuesday, Australian Media and Communications Authority chair Nerida O’Loughlin was asked by Liberal backbencher Sarah Henderson about conflicts between the investigation into the outage and ACMA’s failures during the incident.
“Our responsibility is to look at the compliance of Optus with the legal instruments for which we have responsibility,” Ms O’Loughlin said.
“That is our role.
“If there are other matters that sit outside us looking at Optus as performance and Optus as compliance, that’s not a matter that we would be looking into.
“However, that said, internally, as I’ve said on the record, previously, we’ve been looking at the amount of notifications we’re getting and how we handle that information, and how we escalate things when we need to.
“And we have certainly looked at that after the Optus outage of September 18.”
Ms O’Loughlin later clarified the review of escalation procedures was “an internal consideration“ and “not part of a formal investigation”.
She also confirmed the scope of the formal compliance investigation into Optus had expanded to include a recent TPG outage, linked to one death.
Triple-0 custodian staff grilled on ‘24/7’ claim
Earlier, communications officials revealed the government’s triple-0 custodian handling overnight calls could be asleep when an emergency occurs, with staff kept on unpaid, on-call rostering for that aspect of the role.
The triple-0 custodian service was fast-tracked in the wake of the disastrous Optus outage, which resulted in multiple deaths after customers were unable to contact emergency services.
Senator Henderson grilled communications officials during a Senate estimates hearing to determine who in the 30-person team was responsible for taking overnight calls.
“Is someone awake overnight to take the phone call?” she asked.
“They’re not awake overnight. They’re available with a phone to be able to take the phone call if needed,” a communications department official said.
“But what if they’re sleeping?” Senator Henderson said.
“Their phone will ring and they’ll take the call,” the official said.
However, deputy secretary James Chisholm clarified the communications department was not the first point of contact for an emergency response.
“We are not the front line emergency response body,” he said.
“The emergency call person, which is, as you know, run by Telstra and emergency services, are the most important first point of contact that networks should provide information to.
“There are a range of other organisations that networks are required to notify, that includes the National Emergency Management Agency, ourselves, ACMA.
“But the most important thing is that networks, when they are notifying of a problem, they are contacting the people who will help save lives immediately.”
ACMA’s cut-price deal for Optus blasted
Earlier, the communications watchdog came under fire as department officials were grilled on whether Optus would be given a cheaper spectrum licence, despite a disastrous triple-0 outage earlier this year.
ACMA has proposed to renew almost 70 expiring spectrum licences for between $5bn and $6.2bn.
The spectrum refers to the range of radio frequencies managed by ACMA, on which mobile networks are given a licence to operate.
Greens senator Sarah Hanson-Young asked why Optus should be “rewarded” for its failings.
“A company that has behaved so badly, that has failed so badly, should not be rewarded for that behaviour with a cheaper price to accessing that spectrum,” Senator Hanson-Young said.
“And I think most Australians would agree.
“I haven’t heard the government say that they’re too big to fail.
“But if that’s the argument, then the government better start telling people that, because I think you’ll get some resistance.”
Department officials denied making that claim, instead saying the potential consequences for Optus in relation to the triple-0 laws was a “big focus”.
“But with spectrum, you’ve also got consequences for consumers, including Optus customers, and so the outcome of the spectrum process has implications for competition, for customers, for regional communities,” a department official said.
“Optus, for example, has an arrangement with TPG that enables broader access for regional communities.
“So whatever decision ACMA makes on spectrum has follow on implications for … competition for customers, for connectivity.”
$10m social media ban campaign
Labor’s media blitz for its upcoming social media laws will be executed at the hefty price-tag of $10m, department officials have revealed.
With the world-first ban set to take effect in just over a week, the department will spend the multimillion-dollar figure from October 19 to December 20 2025.
$6.4m has been allocated for media spend, with the remaining $3.4m spread across “research elements, the creative elements,” a department official told the estimates committee.
“We also have public relations as part of this campaign,” they said.
“We have also engaged a First Nations consultant and a core consultant to assist with the development of the campaign.”
The campaign elements, spread across channels like radio, digital video and audio, television, print and social media, direct people to the information related to the social media minimum age on the eSafety website.
“The eSafety website provides a whole raft of content, including support and resources for parents, individuals, educators,” a communications official said.
“We’re working quite closely with them to continue to promote and amplify the messaging, to assist in developing content as well to support the audience.”
Originally published as ‘Conflict of interest’: ACMA chief Nerida O’Loughlin grilled on watchdog’s failures during Optus triple-0 outage
