Telstra CEO Vicki Brady has announced that executive bonuses will be reviewed following a major nationwide outage that disrupted services for millions of customers. The outage, which occurred on Wednesday, left customers unable to make calls, send texts, or access the internet for up to 12 hours. Brady described the incident as "unacceptable" and said the company would take action to ensure accountability.
Details of the Outage
The network failure began around 5:30 AM AEST on Wednesday, affecting both mobile and fixed-line services across Australia. Telstra reported that the issue was caused by a software glitch in its core network, leading to a cascade of failures. Services were gradually restored by late afternoon, but the disruption caused widespread frustration among customers, including businesses, emergency services, and individuals.
According to Telstra, the outage impacted approximately 10 million customers, making it one of the largest network failures in the company's history. The Australian Communications and Media Authority (ACMA) has launched an investigation into the incident.
Executive Bonuses Under Scrutiny
In a statement on Thursday, Brady said the board would review executive bonuses in light of the outage. "We understand how critical our services are to Australians, and we let them down," Brady said. "The board will consider the impact on executive remuneration as part of our commitment to accountability."
The review comes amid growing pressure from consumer groups and politicians. Communications Minister Michelle Rowland called the outage "deeply concerning" and urged Telstra to compensate affected customers. "Australians deserve reliable telecommunications, and when that fails, there must be consequences," Rowland said.
Customer Compensation and Regulatory Response
Telstra has announced it will offer affected customers a credit on their next bill, though the amount has not been specified. The company also faces potential fines from ACMA, which can impose penalties of up to $10 million for breaches of service reliability standards.
Industry analysts have warned that the outage could damage Telstra's reputation and lead to increased churn. "Trust is hard to rebuild, especially when essential services are disrupted," said telecommunications expert Dr. Mark Gregory from RMIT University. "Telstra needs to demonstrate tangible changes to regain customer confidence."
Technical Failures and Future Prevention
Telstra has confirmed that the outage was triggered by a software update that introduced a fault in its network management system. The company is working with vendors to implement safeguards to prevent a recurrence. Brady said Telstra would invest in additional redundancy and testing protocols.
The incident has reignited debate about the resilience of Australia's telecommunications infrastructure. The government has pledged to review the sector's reliability standards as part of its broader digital economy strategy.
