Regulator Fines Optus $1.5 Million for Large-Scale Safety Rules Violation

ACMA said Optus put 200,000 customers at risk for not submitting their data to the Integrated Public Number Database between 2021 and 2023.
Regulator Fines Optus $1.5 Million for Large-Scale Safety Rules Violation
Pedestrians walk past an Optus store in Sydney, Australia, on Nov. 21, 2023. (Lisa Maree Williams/Getty Images)
Alfred Bui
3/6/2024
Updated:
3/6/2024
0:00

Telco giant Optus has been fined $1.5 million (US$977,000) for violating Australian public safety rules on a large scale.

On March 6, the Australian Communications and Media Authority (ACMA) said Optus had paid the penalty after an investigation revealed that the company failed to upload the information of 200,000 mobile customers to the Integrated Public Number Database (IPND) between January 2021 and September 2023.

The IPND is a database used by emergency services such as the Emergency Alert Service to warn Australians of disasters, including bushfires, and floods.

It also provides location information of mobile phone users to police, fire, or ambulance services in an emergency.

A compliance audit found Optus did not submit the required data to IPND, prompting an investigation from the ACMA.

Samantha Yorke, an ACMA member, said Optus’ negligence might have result in “very serious” consequences for Australians’ safety.

“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,” she said.

“Optus cannot outsource its obligations, even if part of the process is being undertaken by a third party.”

Ms. Yorke also noted that all telcos needed to have adequate systems to ensure compliance with regulations while having strong oversight of third-party suppliers’ processes.

Apart from paying the fine, Optus will be required to conduct an independent review of its IPND compliance and adopt the recommendations from authorities.

The ACMA may impose another fine of up to $10 million if it finds Optus failing to comply with the requirements.

Meanwhile, an Optus spokesperson admitted a lack of proper audits to ensure the compliance of its database.

“We apologise for this and accept that we have not met community expectations,” the spokesperson said.

“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.”

The ACMA’s announcement comes as Optus is still recovering from a series of incidents in the past couple of years that have caused its reputation to plummet.

The company suffered a massive data breach in September 2022 that exposed the personal data of 10 million old and current customers.

In November 2023, Optus underwent a 14-hour nationwide outage that paralysed part of the country, forcing former CEO Kelly Bayer Rosmarin to resign.
The telco also slashed 600 jobs in 2023, with reports emerging about another 200 job losses in March 2024.
Alfred Bui is an Australian reporter based in Melbourne and focuses on local and business news. He is a former small business owner and has two master’s degrees in business and business law. Contact him at [email protected].
Related Topics