Australia's second-largest telecom provider Optus is scrambling to resolve a massive service outage that began around 4am on Wednesday, affecting phone and internet connectivity and disrupting emergency number access from fixed lines.
Optus has yet to clarify the nature of the incident, including whether it stemmed from a technical glitch or a cyberattack.
An early morning statement on its Facebook (NASDAQ:META) page acknowledged the disruption but had not been updated several hours later and restricted comments from customers.
“We are aware of an outage impacting our customers,” the post read.
“Our teams are working to restore services as soon as possible. We will provide updates as soon as possible. We apologise sincerely to our customers."
The telecommunications company has just over 10 million customers, about 40% of Australia's population.
Hardware failure, maybe?
Industry sources suspect a hardware failure within Optus' core network, including routers, given the concurrent mobile and internet service failures, the Australian Financial Review (AFR) reported.
An Optus client received a statement at 10am saying the company’s engineers had been dispatched to sites to “isolate the network elements to attempt to identify where the fault is”.
However, efforts to identify the fault have been hampered by remote access challenges, necessitating technicians to directly connect to core network components, which is delaying the troubleshooting process.
Wider implications
The outage has also affected users of mobile plans from the Vocus Group and Aussie Broadband, which rely on Optus' mobile networks.
Further, the disruption has had wider implications, initially halting certain train services in Melbourne and impacting Uber's ride-sharing services, with Uber reportedly capping surge pricing during the incident.
Speaking on ABC Radio, Communications Minister Michelle Rowland said while the cause remained unclear, the government has no information if the outage was the result of another cyberattack.
“The Government has sought further information from Optus about this development and when they expect services will be restored,” she said in a follow-up statement posted on X, the social media site formerly known as Twitter.
Costly incident
The outage comes as a considerable setback for Optus, which is still managing the repercussions of a severe data breach from the previous year.
Finder’s tech expert Angus Kidman warned Optus could face a customer exodus as the outage may be the final straw for those sitting on the fence after last year’s cyberattack incident.
“This could be a case of ‘two strikes and you’re out’ for Optus – customer loyalty is already on shaky ground following the data breach in 2022,” he said.
Kidman said the fear of being stuck without mobile phone connectivity is real, especially for those who rely on their phone for directions and work.
“This is one of the hidden costs of everything moving online – a network outage literally stops people in their tracks,” he added.
The Optus board, along with chief executive officer Kelly Bayer (ETR:BAYGN) Rosmarin, is facing renewed scrutiny amid ongoing efforts to recover from the damage sustained to its brand in last year's data breach.