Businesses are being urged to seek compensation over Optus' outage. How could it work?

Optus may have broken some customer service agreements, depending on the reasons for the outage and the terms of customers' contracts.

Businesses have been pushed to apply for compensation following Wednesday's 12-hour Optus outage. Source: AAP / Joel Carrett

Key Points

• The telecommunications watchdog is urging small businesses to contact Optus about compensation claims.
• Businesses are counting the costs after the nationwide Optus outage ground many traders' operations to a halt.
• Optus may have breached some customer service agreements, the Australian Media and Communications Authority says.

The telecommunications watchdog is urging small businesses to get in contact with Optus to discuss options for compensation following Wednesday's 12-hour network outage.

"What we would encourage [businesses] to do is contact Optus and ... help them understand what the impact was on them and their earnings," Telecommunications Industry Ombudsman (TIO) Cynthia Gebert said.

"That's the sort of thing that we think you need to tell Optus so they get a sense of what sort of compensation might be the right thing to do for your circumstances."

Gebert said the scale of the outage was unacceptable as it impacted emergency services and hospitals in addition to small businesses and transport services.

Financial Services Minister Stephen Jones said Optus' response was "absolutely subpar".

"You'd have thought, coming off the back of the previous data breach where they were facing similar calls from customers to explain exactly what was going on, this simply wasn't good enough," he told ABC radio.

Businesses are counting the costs after the nationwide outage ground trading to a halt.

More than 10 million customers and businesses were thrown into disarray from about 4am, with customers prevented from connecting to the internet or making or receiving calls.

It took more than 12 hours to restore services.

Optus chief executive Kelly Bayer Rosmarin said in a statement on Thursday the outage was caused by a "network event" had "triggered a cascading failure which resulted in the shutdown of services to our customers".

"There is no soundbite that is going to do it justice, so we want to really bottom out the root cause and when we have that very clear and in a digestible form, we will be forthcoming," she told the Australian Financial Review earlier.

How has Optus responded?

Optus has said they're "deeply sorry" for the.

"We know how important connectivity is to all our customers, and that we let you down," Rosmarin said.

To acknowledge the "patience and loyalty" of those who were affected by the outage, Optus will offer customers free data.

From 13 November, eligible postpaid customers will be able to add 200GB of extra data to their plans. Eligible prepaid customers will get unlimited data on weekends until the end of the year.

Small businesses whose trading was disrupted by the outage will also be able to take advantage of the deal.

Who would be eligible for compensation from Optus?

Communications Minister Michelle Rowland has said compensation payments might be on the cards, but not immediately.

"In relation to customers who've been affected and what their recourse may be, I note the comments by the Telecommunications Industry Ombudsman that, at this time, it is probably too early to be discussing or giving definitive views about compensation or other consumer rights," she said.

Communications Minister Michelle Rowland said her department will identify lessons for the industry to learn. Source: AAP / Bianca De Marchi

The TIO said it was ready to help customers seeking refunds.

Rowland said customers should keep track of how the outage has impacted them.

"It's important, especially for small businesses, to keep receipts, so that any recourse and any redress that may be available to them has that evidentiary base," she said.

Did the Optus outage breach consumer obligations?

The Australian Media and Communications Authority (ACMA) says customers who have been impacted by a mobile or internet outage can file a formal complaint with their telco.

"If the outage is only minor and short, it is unlikely you will receive any compensation or refund," it said.

"But the telco may be breaking your service agreement, depending on the reasons for the outage (and) the terms of your contract.

"Some contracts allow you to apply for a refund or rebate when you can't use a service because of an outage. This is usually only for major outages that you did not cause."

Optus to face Senate inquiry

Optus will face a Senate inquiry over the outage, after a motion moved by Greens Senator Sarah Hanson-Young passed on Thursday.

Part of the inquiry, which will be chaired by Hanson-Young, will look at how Optus compensates its customers following the outage.