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Vic Business Hit: Telstra Faces Big Compo Demands

Vic Business Hit: Telstra Faces Big Compo Demands

Telstra, which claims to have the nation’s best network, is facing demands for large-scale compensation from major business users after its latest network outage– its eighth this year – late last week knocked out banking payments, healthcare and other corporate services.

Coming on Thursday, the last day of Australia’s financial year, the outage had a major impact on businesses, but also cut a wide swathe among thousands of other everyday users, mainly in Victoria.

Embarrassingly, it came just one day after CEO Andy Penn committed to spend $250 million upgrading the telco’s increasingly problematic network.

Telstra blamed the latest problem on what it called a misbehaving network device which affected a part of the network that mainly services business customers in Victoria.

“The fault was caused by a device in the network behaving in a way that wasn’t expected and it impacted part of the enterprise IP network in Victoria,” a spokesman said.

Among other affected businesses, the outage, which began about 2pm on Thursday and lasted in some cases well into Friday, took out the National Australia Bank and ME Bank’s Internet banking service. Jetstar’s check-in system and Myer’s eftpos network were also among the thousands of businesses affected.

More than 60 Myer stores across Australia were said to have been reduced to cash-only operations for six hours.

Other affected businesses included Medibank, JB Hi Fi, Harvey Norman, Officeworks, The Good Guys Reece Plumbing, Channel 31, Virgin Active, Monash University, the Royal Women’s Hospital – and, on election eve, Labor’s Victorian campaign HQ and electorate offices.

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