Australia Cares For Telco Optus Network Disruption That Breaks Internet Connection Of 10 Million Residents

Australian Communication Minister Michelle Rowland (photo: Twitter @MRowlandMP)

The Australian government announced on Thursday 9 November that it would investigate network disruptions at telecommunications firm Optus that cut internet and telephone lines for nearly half of the country's population. The disruption caused widespread chaos and prompted a number of small business customers to seek compensation.

More than 10 million Australians were affected by a 12-hour network outage at the country's second-largest telecommunications company largely on Wednesday, November 8, sparking anger and frustration among customers and raising broader concerns about telecommunication infrastructure.

Optus apologized again on Thursday and blamed the blackout on a "network event" that sparked "consecutive failures". The company did not provide further explanation. Optus has previously removed the possibility of cyberattacks.

Optus CEO Kelly Bayer Rosmarin said in a statement that customers would be given free data "to recognize their patience and loyalty".

Hours earlier, the government announced a post-incident review of blackouts disrupting payments, transportation, and hospitals as well as about 40% of the population. Communications Minister Michelle Rowland described this incident as "very worrying".

"While we welcome that Optus service is recovering throughout the day, it is very important for the government to carry out a learning identification process that can be learned from yesterday's blackout," Rowland said in a statement quoted by VOI from Reuters.

According to Rowland, Australian media regulators will also conduct a separate review of the blackout after a three-point emergency call ("000") comes down on Optus' home phone.

taxi driver Ian Martin-Brown told Nine Network he might take legal action after losing his income for one day. Other customers including cafe owners and special online retailers told the media they would seek compensation for lost income.

"There is no doubt that it should be taken into consideration," Finance Minister Stephen Jones told ABC Radio. "If you are a small effort that loses a day's income because your phone system is not working, then you will ask these difficult questions."

The parent company Singtel said the outage had "disappointed our customers" and apologized when it reported on Thursday an 83 percent increase in its half-year profit.

However, UBS analysts say that Optus is now facing a possible loss of subscribers to Telstra, the country's largest telecommunications company, and TPG Telecom for "strong brand perceptions" of the quality of competing networks.

The government said it would also examine the possibility of allowing customers to switch to available networks during future blackouts.

"The industry is ready to engage... this is possible and we will continue as a government," Rowland told ABC Radio.