ACMA slaps Optus with $1.5 million fine for IPND neglect

Thursday, 07 March 2024 10:35

ACMA slaps Optus with $1.5 million fine for IPND neglect Featured

By Kenn Anthony Mendoza

The Australian Communications and Media Authority (ACMA) has slapped telecommunications company Optus with a $1,501,500 fine after it found that Optus failed to upload the required customer information of about 200,000 mobile customers to the Integrated Public Number Database (IPND) between January 2021 and September 2023.

The estimated 200,000 was supplied under the Coles Mobile and Catch Connect brands.

The IPND is used by critical services like the Emergency Alert service to warn Australians of disasters such as flood and bushfires, and by Triple Zero, to provide location information to the police, ambulance, and fire brigade in an emergency, the ACMA said.

ACMA member Samantha Yorke said the regulator commenced its investigation after a compliance audit indicated Optus had failed to upload data via its outsourced supplier Prvidr.

“When emergency services are hindered there can be very serious consequences for the safety of Australians,” Yorke warned.

“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.”

“All telcos need to have systems in place that ensure they are meeting their obligations, including having robust oversight and assurance processes for third-party suppliers.”

As part of a court-enforceable undertaking, Optus will be required to make an independent review of its IPND compliance. It will hire a third-party data provider and commission it to recommend improvements after a thorough review.

Optus has also been directed to comply with the IPND industry code.

If Optus fails to comply with the undertaking, the ACMA may commence proceedings in the federal court. It can order penalties of up to $10 million per breach in relation to the undertaking.

Optus is not the only telco in hot water for failing to comply with the IPND.

Last November 2023, ACMA fined Telstra $300,000 for failing to “provide accurate details of thousands of customers” to the IPND.

The penalty followed a $2.5 million fine in 2021 when the ACMA found systemic issues with Telstra’s compliance with IPND rules.

Over the past 18 months the ACMA has taken action against five telcos for IPND breaches, with financial penalties totalling more than $2 million.

This first appeared in the subscription newsletter CommsWire on 06 March 2024.

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