A recent independent review has revealed that Optus lost effective control of its network operations after outsourcing vital tasks offshore. This mismanagement contributed to a catastrophic failure of the Triple Zero emergency call system, leaving hundreds unable to reach emergency services and linked to two fatalities. The review, led by former NBN Co director Kerry Schott, examined a network outage that occurred on September 18, 2023, caused by a poorly executed firewall upgrade.
During the outage, which lasted nearly 14 hours, a staggering 605 individuals attempted to dial Triple Zero across multiple Australian states, including South Australia, Western Australia, the Northern Territory, and parts of New South Wales. Alarmingly, only 150 of those calls connected, resulting in a failure rate of approximately 75%.
Critical Failures and Management Issues Identified
The report highlighted at least ten separate failures by both Optus engineers and its contractor, Nokia, during what should have been routine maintenance. Schott pointed to the “real tragedy” being not only the initial technical error but also the ongoing inability to recognize and respond to early warning signs. She noted, “The necessary processes were in place, but their requirements were not performed properly.”
A key takeaway from the review was the “very poor management” of Optus’s network operations. Following a decision in 2018 to outsource much of its work to Nokia, operations were largely shifted to an offshore facility in India. The review found that morale at this facility was low, oversight was inadequate, and alerts regarding system issues received insufficient attention. Staff members were reported to be hesitant to challenge mistakes or escalate concerns.
Furthermore, the firewall upgrade was mistakenly classified as low-risk and urgent, allowing the process to bypass senior review. This misclassification was critical as it led to a failure to divert call traffic before locking down network equipment, resulting in the inability to complete Triple Zero calls while regular voice calls were rerouted successfully.
Reforms and Accountability Measures Announced
While the review stopped short of calling for the resignation of CEO Stephen Rue, it urged sweeping reforms in both culture and governance at Optus. The board has accepted all 21 recommendations from the review, which include overhauling risk management practices, enhancing emergency call testing, and expediting plans to bring network operations back onshore. In a bid to better support emergency and vulnerable customers, Optus also announced plans to expand its Australian call centres by approximately 300 staff.
Chairman John Arthur described the review as a “sobering read” and confirmed that individuals would face consequences, which could range from financial penalties to termination of employment. The ramifications of this incident are significant, not only for Optus but also for the broader telecommunications industry, as the need for reliable emergency services remains paramount.
