Singtel Optus Pty Limited (Optus) subsidiaries have been fined more than $12 million for breaking emergency call rules after being investigated by the Australian Communications and Media Authority (ACMA).
On 8 November 2023, a nationwide network outage by Australian telecommunications company Optus affected 2,145 people who couldn't access the emergency call service (000).
Optus also failed to conduct 369 welfare checks on individuals who tried to make emergency calls during the outage, the independent Commonwealth statutory authority responsible for the regulation of broadcasting, radiocommunications, telecommunications and online content said on Friday after its investigation.
- Penalties: Optus has paid more than $12 million. The size of the penalty reflects the critical nature of the breaches.
- ACMA Findings: The ACMA investigation found that Optus failed to manage its network appropriately and that the outage could have been prevented. Optus also failed to ensure the safety and wellbeing of over 360 customers after the outage was resolved.
- Government Actions: A post-incident review led to a comprehensive set of regulatory actions to improve telecommunications sector performance during network outages.
These actions include: Better communication by telcos with customers during outages; greater oversight of the Triple Zero ecosystem; regular systems testing; ensuring emergency calls can be seamlessly carried by other carriers when needed. - ACMA Updates: The ACMA has updated the Telecommunications (Emergency Call Service) Determination 2019, is developing a new industry standard for customer communications during outages, and will make changes to complaint handling requirements.
- Impact: Beyond the penalties, the incident has led to changes in regulatory obligations for emergency call services, requiring further actions and investment by telcos to enhance consumer safeguards and improve the Triple Zero ecosystem.
The focus is on ensuring that Australians can have greater confidence in accessing emergency services when needed.
ACMA Chair Nerida O’Loughlin said the size of the penalty reflected the critical nature of the breaches.
“Triple Zero availability is the most fundamental service telcos must provide to the public. When an emergency call fails to connect there can be devastating consequences for public health and safety,” she said.
“Our findings indicate that Optus failed in the management of its network in a number of areas and that the outage should have been preventable.
“Optus also failed to follow up on the safety and wellbeing of more than 360 of its customers once the outage was resolved.”
“Beyond the penalties announced today by the ACMA, the Optus outage has directly led to changes for industry regulatory obligations in relation to emergency call services,” O’Loughlin said.
“This will require further actions and investment by telcos, including Optus, to provide better safeguards for consumers and enhance the Triple Zero ecosystem so that Australians can have even greater confidence they will be able to get through to emergency services when they need it.”
Optus Responds to ACCC's Action
Optus has apologised to all its affected customers. The misconduct alleged by the ACCC is deemed unacceptable and misaligned with Optus' values, Optus Interim CEO Michael Venter said in a statement.
Venter said: "We sincerely apologise to all customers affected by this misconduct and for the distress caused.
"We deeply regret that in these instances we failed to meet the customer service standards that our customers deserve and should expect.
“The misconduct alleged by the ACCC is unacceptable, and completely out of step with our company values and we accept that we need to protect all customers, including those experiencing vulnerability, from this type of behaviour.”
Remediation Efforts: Optus is taking steps to remediate affected customers by providing refunds, waiving outstanding debts, and allowing them to keep their devices. The company acknowledges the delay in remediation for some cases and does not tolerate employee behavior that exploits customers.
Disciplinary Actions: Disciplinary actions, including terminations, have been taken against staff responsible for the misconduct involving vulnerable customers.
Review and Improvements: Over the past three years, Optus has conducted a major review of its sales management, focusing on vulnerable customers. The company has implemented new sales systems, compulsory training programs, and IT system enhancements to prevent future misconduct.
Customer Support Initiatives:
- Introduction of a customer advocacy program to improve the management of vulnerable customers.
- Investment of over $5 million in a dedicated specialist care team and a new Optus vulnerable customer policy.
- Robust governance and quality assurance programs.
- Changes to credit controls and bad debt monitoring.
- Improved coverage assessment tools at the point of sale.
- Mandatory training for all customer-facing staff on supporting vulnerable customers.
Customer Advocate: Optus is appointing a customer advocate to work with partners, community groups, financial counselors, and customer teams to enhance support for customers in need.
Commitment to Vulnerable Customers: Optus acknowledges its vital role in ensuring vulnerable customers stay connected and continues to work with external consumer bodies to develop support programs. The company has cooperated with the ACCC and is committed to improving its processes for customers experiencing vulnerability.
Other failings by Optus during the outage were identified in a government-commissioned post incident review. Following that review, the Government agreed to a comprehensive set of regulatory and other actions to improve the performance of the entire telecommunications sector when dealing with network outages.
These include requiring better communications by telcos with their customers and other stakeholders during an outage, greater oversight of the Triple Zero ecosystem, regular systems testing, and ensuring emergency calls can be seamlessly and consistently carried by other carriers when needed.
The ACMA has already made updates to the Telecommunications (Emergency Call Service) Determination 2019, is developing a new industry standard requiring a minimum level of customer communications from telcos during outages, and will make changes to complaint handling requirements.
Venter added: "The majority of the sales occurred at three licensee-operated Optus stores.
"We are remediating affected customers including by providing refunds, waiving outstanding debts and enabling them to keep devices. We regret that we did not remediate more quickly in some of these cases.
"Optus does not tolerate employee behaviour which takes advantage of customers."
As at 8:23 am (AEDT) Friday 8 November 2024, SingTel (Singapore Telecommunications Ltd) has a stock price of SGD$3.21. The market cap is approximately SGD$53.01 billion (A$60.112 billion).