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Fine threat for telco as chief faces grilling next week

Fine threat for telco as chief faces grilling next week
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“We’re definitely happy to work with any inquiries,” Bayer Rosmarin said. “Our objective is to have a network that’s up 100 per cent of the time, and we’re keen for any learnings and eager to assist.”

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But industry ombudsman Cynthia Gebert has said the company could be compelled to financially compensate individuals or businesses who could prove financial loss or stress.

On top of any compensation, regulators could impose their own fines, according to leading telecommunications expert Dr Mark Gregory.

The Australian Communications and Media Authority fined meal service DoorDash $2 million for spam texts. Gregory said the watchdog could deliver a considerably larger fine for Optus’ failure to maintain triple-zero calls for customers.

ACMA has launched an initial assessment of the triple-zero blackout and said in a statement it was “strongly concerned” about the suffering Optus customers had faced. A spokesman confirmed the body could fine Optus or take it to court if a serious breach were found.

Gregory said he expected large fines from ACMA and the Australian Competition and Consumer Commission, which he said would probably take an interest in what he described as a once-in-a-generation telecommunications blunder.

“Optus could be in breach of legislation because many of their customers weren’t able to call triple zero. This was the most important thing that happened on Wednesday,” he said. “Between ACMA and the ACCC, I would anticipate this is a very hefty fine.”

Optus executives have blamed an unexpected network event for the 16-hour shutdown of mobile and internet services.

The nation’s second-biggest telecommunications firm has been widely criticised by Labor, Liberal and Greens politicians over its compensation offer of free internet data.

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Gregory said the company had failed to grasp the gravity of the failing and urged it to instead cut customers’ monthly bills. Many subscribers already had unlimited data usage in their plans, he said, meaning the offer was “pointless”.

“The cost of that data to the company is marginal. They’re trying to make out its equivalent to one of their plans, but it’s not. The data is worth very little, less than $1, I would say.

“There’s no sincerity here in treating this as it should be treated.”



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