Telcos’ customer complaints spike after Optus outage

Complaints to the telecommunications ombudsman spiked in the direct aftermath of the mass Optus outage, data has revealed, as the Senate prepares for a second hearing into the incident on Friday.

The November 8 outage, which was one of the most severe in the nation’s history, affected about 10 million Optus customers and crippled businesses, hospitals and rail networks.

Complaints to the ombudsman jumped by 13.4 per cent compared with the September quarter as a result, with 919 complaints specifically made about the Optus outage, according to ombudsman data recorded between October and December 2023.

Telecommunications Industry Ombudsman Cynthia Gebert said: “If we need to take a strong line with Optus to get the right outcome for their customers, that’s what we will do.”

Some 20 per cent of complaints about the Optus outage were from small businesses. Remedies sought by consumers included credits, refunds or discounts, financial compensation, early exit from a contract or an apology.

Telecommunications Ombudsman Cynthia Gebert said that for some customers, the offer from Optus of 200 gigabytes in free data was reasonable, but for many small businesses who lost income or people who couldn’t call triple zero that wasn’t enough.

“What the Optus outage showed us was how essential internet services are for our ability to function, in society and in the community more broadly,” she said on Wednesday.

“We can never guarantee things like this aren’t going to happen, but we heard loud and clear from consumers that they want accurate and timely information, so they can make decisions about how to run their life without access to phone and internet.”

Optus revealed last month that more than 2000 customers were unable to get through to emergency services during the outage, more than 10 times the number its then chief executive Kelly Bayer Rosmarin told the Senate.

The November outage impacted rail networks, hospital communications and businesses across the country, and cost Bayer Rosmarin her job. Optus is still searching for her replacement.

“I think 10 million people have variously expressed dissatisfaction with the impact of the outage,” Gebert said. “I’m sure everybody’s learnt a lot and there are a number of government reviews that will increase everyone’s focus on ensuring that many lessons are learnt.”

This Friday, Optus rivals Telstra and TPG, along with the competition regulator ACCC and the communications regulator ACMA, will front a second Senate hearing into the outage.

In positive news for the sector, overall complaints recorded between October and December were down 18 per cent on the same time a year earlier, a result Gebert said was due to telcos improving their complaints handling processes. Complaints about internet services, however, jumped by 23.3 per cent.

The top three local government areas with complaints were Brisbane, the Gold Coast and Moreton Bay, while the top three providers to receive complaints were Telstra, Optus and Vodafone.

Meanwhile, the government on Wednesday directed the ACMA to make it mandatory for telcos to provide financial hardship assistance to customers experiencing difficulties paying their bills.

“In 2024, staying connected is an essential part of everyday life. It’s how Australians keep in touch with loved ones, run businesses and engage with government,” Communications Minister Michelle Rowland said.

“That’s why it is critical telcos do all they can to keep customers connected when they are experiencing difficulties paying their bills. This new industry standard will mean Australian consumers and small businesses are better supported by telcos when they need it most.”

Optus said the November outage was the result of a routine software upgrade from its parent company Singtel that took its network offline and forced staff to physically reboot services.

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