Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Optus compensates customers for outage, debates indirect loss liability

EditorAmbhini Aishwarya
Published 17/11/2023, 06:16
Updated 17/11/2023, 06:16
© Reuters.

Singapore Telecommunications' subsidiary Optus has acknowledged the impact of a network outage caused by a software upgrade last Wednesday, which disrupted services for millions of Australian customers. The outage, which affected essential services and small businesses, led to substantial indirect losses due to interrupted payment processing capabilities.

In response to the situation, Optus CEO Kelly Bayer (OTC:BAYRY) Rosmarin stated on Friday during a Singtel earnings call that the company had received customer claims totaling A$430,000 ($279,193). To address the inconvenience caused, Optus has opted to offer additional data to its customers as a gesture of goodwill, rather than direct financial compensation.

Despite the considerable disruption, Optus has so far compensated customers with A$36,000 ($23,299). The company maintains that there is no established precedent for compensating indirect losses resulting from such outages. However, Optus has expressed a readiness to participate in discussions led by the government on the topic of broader compensation.

Optus cautioned that holding telecommunications providers responsible for business losses could have wider implications for other sectors and consumers. This statement comes amid ongoing debates about the responsibilities of service providers in such events and the potential effects of enforcing liability for indirect losses on industry practices and consumer prices.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.