Optus receives $1.5 million fine from communications watchdog over public safety concerns
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As Australia's second-largest telecommunications company, Optus is trusted by millions to not just provide service but also ensure safety and peace of mind.
However, a recent hefty fine has shed light on serious compliance issues that put public safety at risk.
Optus has been hit with a $1.5 million penalty for failing to meet fundamental public safety requirements mandated by the Australian Communications and Media Authority (ACMA).
The oversight left approximately 200,000 mobile customers under the Coles Mobile and Catch Connect brands vulnerable for over two and a half years, from January 2021 to September 2023.
At the heart of the issue is the Integrated Public Number Database (IPND)—a critical national resource used to alert Australians to imminent dangers such as floods and bushfires, and a lifeline connecting emergency callers with Triple Zero services.
Telcos are required to update customer information in the IPND accurately and regularly, but Optus, through its outsourced supplier, Prvidr Pty Ltd, failed to do so.
ACMA's investigation, prompted by alarming audit findings, brought to light Optus's failure to keep their customer's lifesaving information up to date.
'When emergency services are hindered, there can be very serious consequences for the safety of Australians,' ACMA Member Samantha Yorke said.
'While we are not aware of anyone being directly harmed due to the non-compliance in this case, it's alarming that Optus placed so many customers in this position for so long.'
'Optus cannot outsource its obligations, even if part of the process is being undertaken by a third party.'
'All telcos need to have systems in place that ensure they are meeting their obligations, including having robust oversight and assurance processes for third-party suppliers.'
Without accurate data in the IPND, individuals affected might have missed out on vital emergency alerts or faced delays in emergency response due to unavailable caller location information—a mistake that could have dire consequences in a crisis.
The fine accompanies a court-enforceable undertaking from Optus, which necessitates a thorough independent review of its compliance with the IPND, particularly where third-party data providers are involved.
It also mandates improvements per the review's recommendations.
Should Optus fail to honour this agreement or continue to breach the IPND Industry Code, it could face further penalties from the Federal Court that could stretch up to $10 million per infringement and other orders concerning the undertaking.
Optus has acknowledged the oversight, saying, '[We] accept that proper audits and checks were not in place to ensure IPND obligations were being met for services we supply through our partner brands.'
'We apologise for this and accept that we have not met community expectations.'
'Optus has now introduced those audits and checks-over its supplier's performance to ensure this issue is not repeated.'
'Optus accepts the ACMA's findings and has agreed to an enforceable undertaking to complete an independent review of the processes used to manage compliance with our IPND obligations for these partner brands and make any further improvements if required.'
However, this isn't an isolated case. Over the last year and a half, the ACMA has penalised five telcos for similar breaches, with fines exceeding $2 million.
What are your thoughts on this latest news, dear members? Let us know in the comments below!
However, a recent hefty fine has shed light on serious compliance issues that put public safety at risk.
Optus has been hit with a $1.5 million penalty for failing to meet fundamental public safety requirements mandated by the Australian Communications and Media Authority (ACMA).
The oversight left approximately 200,000 mobile customers under the Coles Mobile and Catch Connect brands vulnerable for over two and a half years, from January 2021 to September 2023.
Optus has been fined $1.5 million for breaching the Integrated Public Number Database (IPND) Industry Code. Image source: Shutterstock.
At the heart of the issue is the Integrated Public Number Database (IPND)—a critical national resource used to alert Australians to imminent dangers such as floods and bushfires, and a lifeline connecting emergency callers with Triple Zero services.
Telcos are required to update customer information in the IPND accurately and regularly, but Optus, through its outsourced supplier, Prvidr Pty Ltd, failed to do so.
ACMA's investigation, prompted by alarming audit findings, brought to light Optus's failure to keep their customer's lifesaving information up to date.
'When emergency services are hindered, there can be very serious consequences for the safety of Australians,' ACMA Member Samantha Yorke said.
'While we are not aware of anyone being directly harmed due to the non-compliance in this case, it's alarming that Optus placed so many customers in this position for so long.'
'Optus cannot outsource its obligations, even if part of the process is being undertaken by a third party.'
'All telcos need to have systems in place that ensure they are meeting their obligations, including having robust oversight and assurance processes for third-party suppliers.'
Without accurate data in the IPND, individuals affected might have missed out on vital emergency alerts or faced delays in emergency response due to unavailable caller location information—a mistake that could have dire consequences in a crisis.
The fine accompanies a court-enforceable undertaking from Optus, which necessitates a thorough independent review of its compliance with the IPND, particularly where third-party data providers are involved.
It also mandates improvements per the review's recommendations.
Should Optus fail to honour this agreement or continue to breach the IPND Industry Code, it could face further penalties from the Federal Court that could stretch up to $10 million per infringement and other orders concerning the undertaking.
Optus has acknowledged the oversight, saying, '[We] accept that proper audits and checks were not in place to ensure IPND obligations were being met for services we supply through our partner brands.'
'We apologise for this and accept that we have not met community expectations.'
'Optus has now introduced those audits and checks-over its supplier's performance to ensure this issue is not repeated.'
'Optus accepts the ACMA's findings and has agreed to an enforceable undertaking to complete an independent review of the processes used to manage compliance with our IPND obligations for these partner brands and make any further improvements if required.'
However, this isn't an isolated case. Over the last year and a half, the ACMA has penalised five telcos for similar breaches, with fines exceeding $2 million.
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