Optus network outage: how to get compensation and who is eligible

Optus customers are being urged to document evidence of the financial losses they are suffering as a result of the ongoing mass network outages.

Optus is experiencing one of the biggest disruptions in Australian history, throwing hospitals, businesses, transport services, government departments and millions of customers into chaos

The outage was first reported at 4am on Wednesday, with Optus mobile users saying they were unable to make calls or send texts as the internet network and home broadband were also down.

Network users in Brisbane, Perth, Sydney, Melbourne, the ACT, Tasmania and Adelaide have all reported blackouts on the Optus service.

The telco announced that services would be gradually restored to customers around 1 p.m., but that this process could take “several hours.”

Optus chief executive Kelly Bayer Rosmarin said the telco would investigate the issue of compensation for millions of customers once services are restored.

“We will consider every option once services are restored,” Ms Rosmarin told 2GB Radio.

“Of course we will see what we can do to thank customers for their patience,” she also told radio station 3AW in Melbourne on Wednesday.

‘You can expect something from us in that regard.’

Ms Rosmarin added that Optus was ‘very apologetic’ for the outage and would do everything it could to provide customers with a great service.

Communications Minister Michelle Rowland shared the country’s “frustrations” at a press conference just after 11am on Wednesday.

Ms Rowland stressed that Optus must be “transparent and timely” in finding a solution for its customers.

“(The) frustration is not just about inconvenience, but in some cases it is also economic frustration,” Ms Rowland said.

“From the outset, I reiterate that it is critical that Optus is transparent and timely in the updates it provides to its customers on the nature of its error, its impact and its possible rectification.”

The Minister of Communications explained that the network outage is due to a ‘deep flaw’ that has major consequences for mobile, fixed and broadband services.

Ms Rowland said it was too early to comment on compensation for affected customers as the outage was an ongoing problem.

However, she advised customers to keep records of how the outage affected them in as much detail as possible so they have evidence of their losses.

“With regard to customers who have been affected… at this time it is probably too early to discuss or express definitive views on compensation or other consumer rights,” Ms Rowland said.

‘I do repeat the statement of the Ombudsman for the Telecommunications Industry (TIO).

“It’s important, especially for small businesses, to keep the receipts so that every story and narrative that’s available to them has that evidentiary basis.”

The Telecommunications Industry Ombudsman said it stands ready to assist Optus customers seeking refunds.

“If you have contacted Optus and you are not satisfied with the response, you can complain to the Telecommunications Industry Ombudsman,” the report said.

‘If you have not contacted Optus, or if you have been unable to contact them, we can forward your complaint to Optus on your behalf.

‘We can help you with reimbursement for the time you were unable to use your service, compensation claims and disputes over your contract.’

The Australian Media and Communications Authority (ACMA) also encouraged customers affected by the outage to make a formal complaint to their telecom company.

Customers may be entitled to a refund or compensation depending on their contract with the provider, the ACMA said.

“If the outage is only minor and brief, you are unlikely to receive any compensation or refund,” AMCA said.

“But the telco may be in violation of your service agreement, depending on the reasons for the outage (and) the terms of your contract.

‘Some contracts allow you to request a refund or discount if you cannot use a service due to a disruption. Usually this only concerns major disruptions that you did not cause.’

The communications authority also said that telecom companies can also offer compensation for loss of service, even if it is not necessary.

Under Australian Consumer Law, customers may also be able to request a refund or discount for the outage.

‘If the service interruptions are frequent and/or severe, you may be able to: request a refund or discount for the period you were without service; cancel your contract without penalty; (and/or) seek compensation for any losses suffered as a result,” ACMA explains.