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Optus chairman John Arthur told Australian senators the telecommunications giant experienced “10 failures” during a catastrophic triple zero outage that left four people dead, marking the first time company leadership publicly acknowledged the scope of systemic breakdowns that crippled emergency services for hours.
Arthur faced a Senate inquiry Monday examining the outage that occurred six weeks ago, when hundreds of Australians lost access to emergency services. The chairman defended CEO Stephen Rue while promising accountability once investigations conclude, but stopped short of announcing immediate executive consequences.
“There were I think 10 failures here, 10 failures,” Arthur told the inquiry. “And if you’re asking me whether I am alarmed at that, I can assure you I am.”
The admission came during heated questioning from lawmakers demanding answers about how Australia’s second-largest telecommunications provider could fail so catastrophically during a crisis. Shadow Communications Minister Melissa McIntosh told ABC News the outage represented failures “both of Optus and the government.”
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Senate Inquiry Demands Accountability
The parliamentary inquiry marks the culmination of weeks of pressure from opposition lawmakers who pushed for an independent investigation into the telecommunications ecosystem. McIntosh said the Coalition had to drag the Labor government “pretty much kicking and screaming” into establishing the probe.
“It is essential that people can make those calls,” McIntosh said in an interview ahead of the hearings. “We’re approaching disaster season. You just had the weather on and you can see how wild it is out there and people need to be able to call triple zero.”
The inquiry has broad powers to compel testimony from Optus executives and regulators, including the Australian Communications and Media Authority, which McIntosh said “were caught up in the failed process.” Senators can also call Singtel, Optus’s Singapore-based parent company, to testify about investment decisions and operational oversight.
Arthur said Rue, who was brought in specifically to prevent such failures, would be expected to complete that mission. The chairman indicated the board would address accountability measures after all facts emerge from ongoing investigations.
“When the dust settles, when we have all of the facts, the board will, as is its duty, deal with accountabilities,” Arthur told senators.
‘Human Error’ Explanation Draws Scrutiny
McIntosh challenged the company’s initial characterization of the outage as simple human error, saying that explanation fails to account for the deadly consequences.
“When I met with the CEO of Optus, he said to me that it was human error,” McIntosh said. “And I asked, how can human error result in the outage where lives were lost? That is just not good enough.”
The outage kept emergency lines down for hours, preventing hundreds of people from making desperate calls during medical emergencies and other life-threatening situations. The incident exposed vulnerabilities in Australia’s telecommunications infrastructure at a time when the country faces increasing extreme weather events and natural disasters.
Arthur acknowledged the gravity of the situation in stark terms.
“I never in my life want to be in the position I’m in today where I have to answer these sorts of questions about a company I’m associated with,” he told the inquiry.
Questions About Offshore Operations
McIntosh raised concerns about Optus’s operational structure, including whether the company maintains triple zero call centers offshore rather than in Australia. She questioned whether offshore operations contributed to the poor response during the crisis.
“I would love to know the investment that’s being made into Optus,” McIntosh said. “I question whether it’s appropriate to have triple zero call centers offshore, not in Australia. I think it’s worthy of asking questions whether that made an impact on the outcome of the triple zero outage.”
The Shadow Communications Minister also pressed for information about Singtel’s investment priorities and whether the parent company adequately funds critical infrastructure maintenance and upgrades in its Australian subsidiary.
Government Response Falls Short, Critics Say
McIntosh criticized the government’s handling of the crisis, noting that Communications Minister Michelle Rowland left the country during the outage. She also took aim at proposed transparency measures as insufficient.
The government announced plans for a consultation process to establish public triple zero registers showing outage information. But McIntosh dismissed the proposal as inadequate because it relies on telecommunications companies to self-report problems on their own websites rather than creating a centralized, government-overseen system.
“From the very beginning of the outage, I called for a public register that was real-time, that was, I guess, overseen by the government,” McIntosh said. “But the minister has pushed the onus back onto the telcos and is saying, well, can you please report it on your website?”
She added: “You’re asking the telcos who are doing the wrong thing to provide the public with information on themselves. I question whether that is going to work.”
The Coalition pushed for stronger measures during recent parliamentary debates, including amendments to increase fines on telecommunications companies that fail to meet service standards. The Labor government voted down those amendments, McIntosh said.
“We are making very slow progress, but it’s taken a lot of hard yakka to get the government to even budge on any of these measures,” she said.
Broader Industry Accountability at Stake
McIntosh emphasized the inquiry extends beyond Optus to examine systemic vulnerabilities across Australia’s telecommunications sector. Other providers have experienced triple zero outages in the past, she noted, making industry-wide reforms necessary.
“This is about all telco providers and holding all of them to account because Optus had a catastrophic outage, but other telcos have been caught up in triple zero outages in the past as well,” McIntosh said.
The inquiry will examine whether telecommunications companies receiving government contracts should face restrictions if they accumulate major penalties for service failures. McIntosh questioned whether it makes sense for the government to award lucrative contracts to companies while simultaneously fining them for letting Australians down.
Regulator Under Fire
ACMA, the telecommunications regulator, faced questioning Monday about its role in the failed emergency response. McIntosh said the agency’s involvement in the crisis raised questions about regulatory oversight and whether existing frameworks adequately protect public safety.
The inquiry is examining whether ACMA has sufficient authority and resources to enforce compliance with emergency service requirements, and whether penalties for violations create meaningful deterrents.
Confidence Crisis in Telecommunications
The outage damaged public trust in both the telecommunications industry and government oversight, McIntosh said. She noted people were losing confidence in Optus’s ability to provide reliable service and in the government’s capacity to hold companies accountable.
Arthur’s testimony suggested Optus leadership recognizes the severity of that confidence crisis. His repeated references to being “alarmed” and his personal discomfort facing senators indicated awareness that the company’s reputation hangs in the balance.
What Happens Next
The Senate inquiry continues gathering testimony from executives, regulators and technical experts to piece together a comprehensive timeline of the outage and the multiple failures Arthur referenced. Investigators are examining technical, operational and management decisions that contributed to the crisis.
The inquiry’s findings could reshape telecommunications regulation in Australia, potentially leading to stricter emergency service requirements, enhanced oversight mechanisms and more severe penalties for compliance failures. McIntosh has called for using recently passed legislation to establish a telecommunications custodian with authority to oversee a mandatory public register of outages.
As Australia heads into disaster season with increasing risks from bushfires, floods and severe weather, the inquiry carries urgent implications for public safety. The four deaths during the Optus outage demonstrated that telecommunications failures can have fatal consequences during emergencies.
Arthur promised senators that accountability would follow once investigations conclude and “all the facts” emerge. For families who lost loved ones during the outage, and for millions of Australians who depend on reliable emergency access, those assurances may ring hollow without concrete actions.
The inquiry resumes Tuesday with additional testimony scheduled from Optus technical staff and independent telecommunications experts.
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