Telstra outage cost Australia more than half a billion dollars, modelling finds

Telstra’s nationwide outage cost the economy more than half a billion dollars, according to the latest consumer advocating modelling.

The estimate, prepared by FTI Consulting for the Australian Communications Consumer Action Network (ACCAN), found July’s outage erased $552 million, which is more than 500 times what the telco paid out to its users in compensation.

The widespread blackout left thousands of users with zero bars of coverage, with SOS or satellite options showing for emergency calls.

Payment solution Tyro was affected, a system that about 80,000 businesses rely on for customer transactions.

The blackout also interrupted transport in Victoria and NSW, with regional services across both states brought to a standstill due to radio network faults and payment issues.

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ACCAN chief executive Carol Bennett told 9News the findings showed the magnitude of the impact.

“Not only was this a very frustrating, inconvenient outage for consumers, but it put lives at risk by people not being able to contact Triple Zero,” she said.

“But it really put a huge impost on the Australian economy to the tune of more than half a billion dollars.

“This is one outage, we know there have been hundreds since April 1 this year, when transparency measures came into place.

“So this is the tip of the iceberg.”

She called the compensation “a drop in the ocean” for the telco, which has paid out $1 million in total to its customers following the blackout.

“It’s really had a huge impact on the whole economy, we need to see a change,” Bennett said.

Bennett said legislation introduced to the Senate on Tuesday offers the best opportunity to hold telcos accountable, pointing to the proposed universal outdoor mobile obligation.

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The proposed legislation would make it compulsory for mobile operators to provide equitable access to baseline outdoor mobile coverage nationwide.

Bennett also advocated for domestic mobile roaming, citing the success the system has seen internationally.

“Having basic reliability and performance standards in place, like other essential services, would go a huge way towards preventing these outages from occurring in the first place.

“We all rely on it every day for everything we do.”