Optus, one of Australia's major telecommunications providers, is facing mounting criticism for what is perceived as an inadequate compensation response to the widespread outage experienced by customers on Wednesday, according to a report by The Guardian.
The outage, lasting 14 hours, disrupted internet and phone services and had far-reaching consequences, affecting critical sectors such as transportation and healthcare communications.
SYDNEY, AUSTRALIA - OCTOBER 05: The Optus logo and slogan are displayed outside a store on October 05, 2022 in Sydney, Australia. The identification details of 9.8 million customers of the Telecommunications operator Optus was stolen in a data breach last week, one of the largest data breaches to occur in Australia
Optus Faces Criticisms
In a bid to address customer grievances, Optus CEO Kelly Bayer Rosmarin issued an apology, acknowledging the profound impact the outage had on consumers and various businesses. Despite expressing regret, Bayer Rosmarin admitted, "There is nothing we can do to make up for that loss of service."
However, the compensation offer presented by Optus, framed as a gesture of goodwill toward affected customers and small businesses, has been met with skepticism and critique.
The proposed compensation includes 200GB of data for small businesses and consumers and unlimited data on weekends for eligible prepaid customers until the end of 2023.
Andrew Williams, Chief Executive of the Australian Communications Consumer Action Network, characterized Optus's compensation as a "token" and noted that it seemingly falls short of rectifying the inconvenience caused by the outage.
Williams emphasized that many customers typically do not exhaust their data allowances, predominantly relying on wifi connections at home or workplaces, thus questioning the practical utility of additional data for a significant portion of users.
Small business ombudsman Bruce Billson joined the chorus of dissatisfaction, deeming the compensation offer inadequate, especially for small businesses that heavily depend on telecommunications services.
He underscored that some businesses suffered significant economic losses during the outage and urged for a more tailored response that would better acknowledge the impact on livelihoods.
The Telecommunications Industry Ombudsman (TIO), Cynthia Gebert, echoed concerns, stating that the compensation might not meet the expectations of customers who endured substantial disruptions, as per The Guardian's report.
She encouraged Optus to engage with affected consumers individually and consider fair and reasonable responses. Dissatisfied customers, she pointed out, have the option to file complaints with the TIO, hinting at the potential escalation of the matter.
Simon Morgan, a public relations lecturer at Swinburne University, contributed to the critical discourse by stating that the compensation should be commensurate with the extent of the disruption.
Read Also: The Australian Government Plans to Restrict Paying Cyber Ransoms Following the Medibank Hack
Senate Inquiry to the Outage
As a Senate inquiry is launched to scrutinize the causes and consequences of the outage, including the adequacy of compensation for affected customers, Optus's handling of the situation remains under intense scrutiny.
The company attributed the outage to a failure in its "modern intelligent router network," an explanation that will likely be subject to further investigation during the inquiry.
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