Optus Fined $12 Million After Outage Blocks Emergency Access for Thousands

A man walk past an Otus store in Sydney, Australia, on Oct. 26, 2024. Susan Mortimer/The Epoch Times

Telecom giant Optus has been fined over $12 million (US$8 million) after an investigation revealed it failed to meet emergency call service requirements during a nationwide outage last year on Nov. 8, leaving more than 2,100 people unable to access emergency assistance.

The investigation by the Australian Communications and Media Authority (ACMA) claims significant failures in Optus’ handling of the incident.

During the outage, 2,145 calls to Triple Zero failed to connect, and 369 welfare checks on individuals who had attempted to call for help were not conducted.

“When an emergency call fails to connect, there can be devastating consequences for public health and safety,” said ACMA Chair Nerida O’Loughlin, emphasising the severity of the breach.

Optus also failed to follow up with customers after the outage was resolved, leaving many vulnerable individuals without support. O’Loughlin noted that the failure to manage the network adequately during the outage should have been preventable.

Government’s Response and New Measures

In response to the Optus incident, a government review revealed further shortcomings and led to new regulatory measures.

The government has introduced stronger oversight, including requiring better communication during disruptions and ensuring emergency calls can be seamlessly transferred to other carriers when necessary.

The ACMA has updated the Telecommunications (Emergency Call Service) Determination 2019 and is working on a new industry standard to improve customer communications during outages.

These measures will hold telcos accountable for reliable emergency call services.

“This will require further actions and investment by telcos, including Optus, to enhance the Triple Zero ecosystem and ensure Australians can have greater confidence in emergency services,” O’Loughlin added.

Optus Vows to Fix Outage Issues

An Optus spokesperson acknowledged the company’s failure to meet customer expectations.

“We know we let our customers down—particularly those who should have received a welfare check from Optus,” a spokesperson told The Epoch Times.

“In the past 12 months, Optus has conducted a review of its systems and processes, and we have made important changes to better manage emergency calls during network challenges.”

The Optus customer team has also contacted impacted customers and offered additional support where needed.

“We remain focussed on ongoing investment in the resilience of our network and invest almost $1 billion annually on network initiatives, maintenance, and upgrades,” Optus said.

Further Legal Issues for Optus

In addition to the fine for the emergency call failures, Optus is facing a legal challenge from the Australian Competition and Consumer Commission (ACCC) for claims of “unconscionable conduct” in its sales practices.

The ACCC alleges Optus sold unnecessary telecommunications products to vulnerable customers, including Indigenous Australians and people with disabilities.

In response, Optus has pledged to provide refunds, waive debts, and allow affected customers to keep their devices.

Interim CEO Michael Venter expressed regret for not addressing these issues sooner and noted that disciplinary actions, including terminations, have been taken against staff responsible for exploiting vulnerable customers.

Optus also said it was making significant changes to its sales systems and governance practices, including establishing a customer advocacy program and investing $5 million in a care team for vulnerable customers.