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Federal authorities launched an investigation into Optus after the telecommunications company failed to properly notify government agencies about a triple zero outage that has been linked to four deaths, Communications Minister Annika Wells said Sunday.
The Australian Communications and Media Authority began investigating after learning the company knew about the emergency services failure for hours before alerting regulators, Wells told reporters.
"Optus has failed the Australian people and can expect to face significant consequences," Wells said during a press conference. "They have perpetuated a failure upon the Australian people with what has happened here."
ACMA head Narita O'Loughlin said the regulator was not notified about the outage until it had been resolved more than 10 hours later, despite requirements that telecommunications companies immediately alert authorities to major service disruptions.
"We did not know that something had gone wrong until the matter had been resolved more than 10 hours later," O'Loughlin said.
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Timeline Reveals Communication Breakdown
Wells revealed a timeline showing significant delays in government notification. The Department of Communications received the first email about an outage affecting 10 calls Thursday afternoon around 3 p.m.
"We didn't hear anything further until 3:40 p.m. Friday afternoon, where we were told the outage had affected about 100 calls," Wells said. "And then shortly after 4 p.m., we were told the outage had affected 600 calls."
The department learned about three deaths from the outage before being told Optus would hold a press conference.
O'Loughlin said the Thursday emails were "pretty perfunctory and actually some of them were inaccurate."
"It was not until the Friday and very late in the day before the press conference where we were informed by the CEO that there were 624 calls in play and of the deaths," she said.
Second Major Failure in Two Years
The investigation marks the second time ACMA has examined Optus over triple zero failures. The regulator imposed penalties exceeding $12 million on the company in 2023 for a previous emergency services outage.
"We did not expect to be here again so soon, less than two years after that breach," O'Loughlin said.
Wells said she expressed "unbelievable disappointment" to Optus CEO Stephen Roo that the company faced another emergency services failure.
"The Bean Review was designed to make sure that this never happened again after it happened last time around," Wells said, referring to an independent investigation following the 2023 incident.
She said there appeared to be "ineffective implementation" of recommendations from that review by Optus.
Investigation Focus Areas
ACMA's investigation will examine multiple requirements under emergency call service regulations, including whether Optus maintained proper networks and facilities to provide emergency services and whether the company notified other service providers about the outage.
The regulator will also examine whether Optus conducted required welfare checks, either by calling people who couldn't reach triple zero or seeking assistance from police to check on those individuals.
"These are the same rules under which we breached Optus back in 2023," O'Loughlin said.
The investigation will also review compliance with new communication requirements implemented after the Bean Review, which require companies to inform customers about outages and provide resolution timelines.
Potential Penalties
O'Loughlin outlined potential financial penalties available under telecommunications regulations, including $19,000 per infringement notice and court-imposed penalties up to $250,000 per contravention.
"There are various penalties under the determination and the other standards that we administer. They are really more directed towards financial penalties," she said.
The regulator can also seek enforceable undertakings requiring Optus to take specific steps to improve processes, though criminal penalties are not available under current law.
Systemic Questions Raised
Wells said the investigation would examine whether sufficient investment had been made in network reliability and whether proper alert systems existed to notify Optus when problems occur.
"We're seeing this big gap between when the outage actually occurred and when people were notified," she said.
The minister said authorities were considering broader questions about emergency call service delivery, including whether private companies should continue handling triple zero calls.
"This is the second significant and egregious failure on the part of Optus, but also other telecommunications providers have had triple zero outages as well," Wells said. "This isn't entirely a matter for Optus."
Regulatory Changes Accelerated
Wells said she was examining ways to fast-track regulatory and legislative changes to fully implement Bean Review recommendations. A triple zero custodian role has been established within her department but not yet fully operational.
"One of the things that I've been looking at across the weekend is how I can fast track regulatory and legislative relief to make sure that all of these are delivered in full," she said.
CEO Cooperation Pledged
O'Loughlin said she met with Optus CEO Stephen Roo and his senior executive team Saturday night, receiving commitments to cooperate with the investigation.
"They have given that commitment," she said when asked about Optus's willingness to comply with the investigation.
The regulator noted that telecommunications networks are complex and the investigation would require time to examine technical details.
Notification Protocol Requirements
Under existing protocols, telecommunications companies must immediately notify multiple stakeholders when major outages occur, including ACMA, the Department of Communications, the National Emergency Management Agency and the Telecommunications Industry Ombudsman.
"Usually as soon as the telco is aware that something has gone wrong," O'Loughlin said, describing typical notification timeframes. "We receive multiple emails per day."
In this case, proper notification protocols were not followed until the outage was resolved.
Broader Industry Implications
Wells emphasized that all telecommunications companies operating in Australia are subject to Australian law and obligations to ensure emergency services calls connect properly.
"All companies who wish to operate in Australia are subject to Australian law," she said.
The minister said the investigation would inform potential regulatory or legislative responses for the broader telecommunications sector, acknowledging that public confidence had been shaken by the failures.
The investigation represents the most significant regulatory response to telecommunications emergency service failures in recent years, with implications for how critical infrastructure providers handle crisis communications and emergency service obligations.
Wells said the focus remained on determining exactly what went wrong before considering broader regulatory changes.
"Once we have the facts about what has happened here and once I take Narita's investigation and the recommendations that come from it, then I can consider what is an appropriate regulatory or legislative response," she said.
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