Optus hauled over the coals in telecommunications review

Australia’s second biggest telco, Optus, failed to grasp the scale and severity of a massive network outage in November last year, a government-appointed review has found.

The review finds while both Optus and rival telco Telstra had information about the outage on November 8, ‘neither had full visibility of the scale and nature of the outage’. Picture: Getty Images

Australia’s second biggest telco, Optus, failed to grasp the scale and severity of a massive network outage in November last year, with a government-appointed review taking aim at the Singapore-owned company over its communications and complaints handling for affected customers.

In his review of the widespread outage, former Australian Communications and Media Authority deputy chair Richard Bean warned the telco’s responses failed on multiple levels, calling for a suite of regulatory responses.

In his 46-page report, Mr Bean warned Optus’s outage, amid an update gone awry, had a sig­nificant impact on Australians, “affecting emergency services, government services, businesses and vulnerable people”.

“Telecommunications have ­become fundamental to everyday life, and the outage was a source of great frustration and distress for many,” he said.

The review finds while both Optus and rival telco Telstra had information about the outage on November 8, “neither had full ­visibility of the scale and nature of the outage”.

The report makes 18 recommendations, including reforms to the emergency call service that underpins the triple-0 management system, with the Albanese government committing to implement several of the recommendations in the coming year.

The review was handed to the government in March.

Communications Minister Michelle Rowland said the government would establish a triple-0 custodian framework, which would be led by the Telecommunications Industry Ombudsman.

This will be in addition to new rules mandating how, what, and when telcos communicate with customers during and after a major outage, as well as requiring the companies to provide work plans to regulators in the wake of a network collapse.

Communications Minister Michelle Rowland. Picture: NCA NewsWire / Martin Ollman

The government will also review and update regulations surrounding the delivery of the triple-0 emergency service.

“This review is the most comprehensive examination of the ­triple-0 ecosystem in over a decade,” Ms Rowland said.

“It means we have a workable blueprint to implement changes that will help improve the resilience of telecommunications in this country.”

Ms Rowland said the government would consider the 18 recommendations made in the review, noting the outage highlighted the vulnerabilities of the broader phone network.

The review comes after the government commissioned the inquiry in November, amid concerns over the telco’s handling of the ­national outage during which millions of users couldn’t access phone and internet services, and many of them also unable to reach emergency services.

Mr Bean also took aim at Optus’ response to the outage, saying the telco issued its first ­public statement 2½ hours after the network collapsed.

Although Optus chief executive Kelly Bayer-Rosmarin did 11 media interviews on the day, Mr Bean notes she did not hold a press conference and only commenced an email campaign apologising for the outage on November 9.

Ms Bayer-Rosmarin resigned in the wake of the outage, with Optus still to announce a permanent replacement.

The review takes aim at Optus’s handling of customer complaints for the outage, warning its effort to force each customer to individually lodge complaints was “unfair”.

Mr Bean is calling on regulators to introduce a standardised approach to compensation for outages, arguing complaints standards and record keeping rules should be amended to ensure they meet community expectations.