Fine threat for Optus as chief faces grilling next week

Save articles for later

Add articles to your saved list and come back to them any time.

Optus boss Kelly Bayer Rosmarin will be grilled by senators next week as the company faces the threat of substantial fines over customers’ inability to call triple zero during Wednesday’s network outage.

Political pressure is growing on Optus as MPs including Government Services Minister Bill Shorten panned Optus’ offer of about $70 of top-up data to millions of customers, with Shorten saying he would be “amazed” if the deal was sufficient after train networks shut, hospitals faced communication troubles, and millions of individuals and businesses were dealt days of chaos.

Optus chief Kelly Bayer Rosmarin has said she will co-operate with the federal inquiries.Credit: Dallas Kilponen/ AFR

Details of a parliamentary probe into the blackout have not been released, but leaked correspondence shows the committee is preparing to meet next week to examine Optus’ failure and the federal government’s reaction.

“We have confirmed a public hearing for the Optus network outage inquiry for Friday, 17 November. Optus has confirmed that the CEO, Ms Kelly Bayer Rosmarin, will attend in person,” a parliamentary official wrote in an email to senators on Friday.

Greens senator and committee chair Sarah Hanson-Young demanded Bayer Rosmarin attend in person rather than via video link.

“[Bayer Rosmarin] should front up in person and not try to phone this in. The public expects answers, including on the question of compensation. We will also be looking at regulatory reform in what has become a very concentrated market where it appears profits have come before the public,” she said.

Greens senator Sarah Hanson-Young demanded Kelly Bayer Rosmarin attend the Senate probe in person rather than via video link.Credit: Alex Ellinghausen

Optus will also be involved in a separate government inquiry announced by Communications Minister Michelle Rowland, which will not hold public hearings.

On Thursday, Bayer Rosmarin said she would co-operate with the federal inquiries.

“We’re definitely happy to work with any inquiries,” Bayer Rosmarin said. “Our objective is to have a network that’s up 100 per cent of the time, and we’re keen for any learnings and eager to assist.”

But industry ombudsman Cynthia Gebert has said the company could be compelled to financially compensate individuals or businesses who could prove financial loss or stress.

On top of any compensation, regulators could impose their own fines, according to leading telecommunications expert Dr Mark Gregory.

The Australian Communications and Media Authority fined meal service DoorDash $2 million for spam texts. Gregory said the watchdog could deliver a considerably larger fine for Optus’ failure to maintain triple-zero calls for customers.

ACMA has launched an initial assessment of the triple-zero blackout and said in a statement it was “strongly concerned” about the suffering Optus customers had faced. A spokesman confirmed the body could fine Optus or take it to court if a serious breach were found.

Gregory said he expected large fines from ACMA and the Australian Competition and Consumer Commission, which he said would probably take an interest in what he described as a once-in-a-generation telecommunications blunder.

“Optus could be in breach of legislation because many of their customers weren’t able to call triple zero. This was the most important thing that happened on Wednesday,” he said. “Between ACMA and the ACCC, I would anticipate this is a very hefty fine.”

Optus executives have blamed an unexpected network event for the 16-hour shutdown of mobile and internet services.

The nation’s second-biggest telecommunications firm has been widely criticised by Labor, Liberal and Greens politicians over its compensation offer of free internet data.

Gregory said the company had failed to grasp the gravity of the failing and urged it to instead cut customers’ monthly bills. Many subscribers already had unlimited data usage in their plans, he said, meaning the offer was “pointless”.

“The cost of that data to the company is marginal. They’re trying to make out its equivalent to one of their plans, but it’s not. The data is worth very little, less than $1, I would say.

“There’s no sincerity here in treating this as it should be treated.”

Optus was contacted for comment about the prospect of fines.

Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.

Most Viewed in Politics

From our partners

Source: Read Full Article