Optus has been hit with a record $100 million fine after knowingly selling phone plans to customers outside its own network coverage.
👉 Background: Optus is Australia’s second largest telco company, and has been owned by the Singaporean behemoth Singtel since 2001. Over the last couple of years, Optus has developed a bit of a reputation problem.
👉 What happened: Now, the Australian Competition and Consumer Commission (ACCC) has slapped Optus with a $100 million fine for “inappropriate sales practices” between 2019 and 2023, that affected hundreds of vulnerable customers.
👉 What else: In some cases, Optus sales staff sold plans to customers even when they lived in areas where Optus reception was not available. In fact, a former ACCC chair thinks Optus' carrier licence should be reviewed...and maybe even re-considered.
What's the key learning?
💡A telecommunications carrier licence is a legal permit that allows companies like Optus to build and operate telecommunication networks across Australia.
💡While there are 336 active carrier licences in Australia, there are only 3 main companies that own the mobile infrastructure behind it - Telstra, Optus and TPG Telecom.
💡Having this carrier licence comes with responsibilities like providing safe and reliable services, protecting customer data, supporting emergency calls, and treating consumers fairly. All of which Optus has failed to do recently. So while it’s very rare for a licence to be revoked, Optus may face higher scrutiny or tougher conditions after these mishaps.
Sign up for Flux and join 100,000 members of the Flux family
