Optus outage: Ideal for plan switch? Compensation options available?

Optus users facing phone and internet issues may consider switching to competitors like Telstra or Vodafone for better deals. Seeking refunds may be challenging

Countless Optus subscribers in Australia experienced a disruption in phone and internet services as the telecom giant’s network went offline around 4 am on Wednesday. The outage, lasting for at least nine hours, impacted various sectors, including hospitals, schools, financial institutions, government departments, and even hindered some individuals’ ability to contact emergency services through triple zero.

The outage on Wednesday took place a year after the Singaporean-owned telecom company experienced a cyber-attack that exposed the personal data of potentially 9.8 million customers. Individuals lined up outside stores of alternative telecom providers, while some sought WiFi access in fast-food restaurants and public libraries.

Federal Communications Minister Michelle Rowland noted that Optus customers were facing a “significant level of anxiety and frustration,” hinting that some might consider switching providers. Optus issued an apology and announced service restoration by 5:30 pm on Wednesday.

If you were affected by the outage, here’s what you can do and what to expect next.

Shop around

On Wednesday, during a 3AW radio interview, the CEO of Optus was questioned about the possibility of a “mass departure” of customers. Kelly Bayer Rosmarin expressed deep regret for the inconvenience caused to customers but highlighted that nationwide outages were “exceptionally rare.”

“I firmly believe at Optus that we prioritize our customers and make significant efforts to provide them with excellent value, top-notch service, extensive coverage, and unique features not available elsewhere,” she stated.

Mariam Gabaji, a telecommunications expert at the financial comparison site Finder, described the Optus outage as “unfortunate” but noted that it presented a good opportunity for individuals to explore other phone and internet plans to ensure they are getting the best value for their money.

Gabaji advised those considering a switch in mobile phone plans to assess whether they are using the data they initially signed up for and to evaluate the coverage provided by different network providers.

Furthermore, she encouraged consumers to shop around for broadband or NBN home internet packages, emphasizing the potential for better value. Using NBN 50 as an example, Gabaji highlighted a $450 price difference between the cheapest and most expensive plans, with the lower-priced option offered by a smaller provider and the costlier one by a major telco.

Refunds and compensation

The Telecommunications Industry Ombudsman recommended that impacted customers reach out to them if they had previously contacted Optus and were dissatisfied with the provided response.

The ombudsman, responsible for resolving disputes between the telecommunications industry and customers, indicated that it could facilitate complaints to Optus if individuals had not contacted the company or faced difficulties doing so.

Additionally, the ombudsman stated its capability to assist affected customers with refunds for the period during which they were unable to use their internet or phone services. Furthermore, it could address compensation matters and disputes related to contracts.

However, Professor Yane Svetiev, the University of Sydney’s Chair of Market Regulation and Private Law, emphasized that it is premature to determine whether customers would qualify for compensation.

“It’s not a straightforward matter where people automatically become eligible for some form of redress simply due to interruptions,” he stated. “The eligibility will hinge on the cause of the interruption, which is not yet fully understood.”

Svetiev pointed out that most telecom companies include terms in their contracts explicitly stating that they do not “guarantee continuous service” due to potential disruptions caused by factors beyond their control.

“It all depends on whether Optus has taken all the necessary actions that a reasonable and competent provider of that service would have, and whether they did so promptly,” he added.

Parliamentary inquiry

The Greens have proposed a federal parliamentary inquiry to investigate the cause of the incident.

Sarah Hanson-Young, the Greens’ communications spokesperson, expressed dissatisfaction with Optus management for not publicly addressing the outage. She deemed it “not good enough” and emphasized the unacceptability of such an extended outage without basic accountability from a corporation of this magnitude.