Optus savaged by Senate
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Optus may have to pay up for leaving Australians in the dark.
A Senate inquiry has recommended that Optus be held financially responsible for compensating customers during significant outages.
The call follows a 12-hour network disruption on November 8, 2023, which affected millions of users and businesses across Australia, including nearly 3,000 missed triple-0 calls.
The outage, which lasted from the morning until 4 pm, caused widespread disruption to banks, healthcare providers, and transport services.
The Senate committee, chaired by Greens senator Sarah Hanson-Young, found Optus's communication during the outage was “manifestly inadequate”, particularly because it relied on social media, despite the fact that many customers had no internet access.
“It stretches credulity that Optus did not think to update the Australian public sooner and in a more accessible way”, the report said, adding that the outage was not only inconvenient but also “potentially dangerous”.
One of the inquiry’s key recommendations is the development of an enforceable communications plan for telcos, requiring them to notify the government, emergency services, and the public during national outages.
It also suggests that telcos be brought under the Consumer Service Guarantee, legally obliging them to provide compensation for service failures.
The inquiry further recommended the introduction of amendments to the Security of Critical Infrastructure Act to classify telecommunications carriers as critical infrastructure providers.
In response to the November outage, Optus offered affected customers free data and speed boosts but argued that the cost of a day’s lost service was minimal - estimated between $1 and $2 per user.
However, Optus has paid out $36,000 in compensation, with total claims reaching $430,000.
Communications Minister Michelle Rowland says the government accepted all 18 recommendations from an independent review into the outage and is working with industry to prioritise these changes.
The inquiry also urged the government to explore large-scale network roaming agreements to maintain service continuity during future outages.
Optus has acknowledged the Senate report, with vice-president Andrew Sheridan apologising for the disruption, particularly to those unable to reach emergency services.
He says the company has since improved its systems and processes to better manage emergency calls during network challenges.
The report also recommended that the Telecommunications Industry Ombudsman expedite a dispute resolution process to ensure customers receive appropriate compensation during mass outages.