Optus pays $12m fine after 2100 left stranded without access to triple-0 services and failure to conduct welfare checks
The regulator said Optus had failed one of its “most fundamental services” after it left more than 2100 customers stranded during a network outage.
Optus has been fined $12m after thousands were unable to access emergency services during a national outage, with Australia’s communications regulator saying it had failed “the most fundamental services” telcos must provide.
Following an investigation launched by the Australian Communications and Media Authority, it found the November 8, 2023 triple-0 outage was not only “preventable” but had the potential for “devastating” consequences.
A total of 2145 customers could not access triple-0, while Optus then failed to conduct 369 welfare checks on people who had attempted to access emergency services during the 12-hour outage.
ACMA chair Nerida O’Loughlin said the sizeable fine reflected the seriousness of the public safety breach.
“Triple-0 availability is the most fundamental service telcos must provide to the public,” she said ahead of the one-year anniversary of the outage.
“When an emergency call fails to connect there can be devastating consequences for public health and safety.
“Our findings indicate that Optus failed in the management of its network in a number of areas and that the outage should have been preventable.”
The fallout of the outage resulted in a senate inquiry into the incident where Optus was blasted for not disclosing the full number of customers affected.
A year prior it said 228 calls had failed to connect, however in a later session then chief executive Kelly Bayer Rosmarin revealed the figure was more than 10 times more at 2468.
Following the probe, changes were made to ensure better communications from companies during outages, and stronger safeguarding of emergency services, with Communications Minister Michelle Rowland vowing to continue working with the industry and ACMA.
“Last year’s Optus outage had serious impacts on public safety, access to services and caused
significant disruptions to the community and the economy,” she said on Thursday.
“I am also pleased to today launch an important community education campaign to help Australian families and businesses prepare for any future outages to telecommunications networks.”
This is the latest hit to the telco giant after the consumer watchdog, the Australian Competition and Consumer Commission (ACCC), accused it of alleged unconscionable sales” which exploited vulnerable Australians.
ACCC chair Gina Cass-Gottlieb said staff allegedly manipulated credit checks to oversell phones and plans to vulnerable consumers, and then pursued debt-collection activities against the 429 affected customers, including people with disabilities and in financially precarious positions.
While Optus interim chief executive Michael Venter apologised to those affected by the action, the company will now be subjected to Federal Court action by the ACCC.
Optus was approached for comment.