$69 postpage LB

Interruption in Triple Zero Services Puts a Question Mark on the Well-Established Network Provider, Telstra

  • October 22, 2018 06:07 AM AEDT
  • Team Kalkine
Interruption in Triple Zero Services Puts a Question Mark on the Well-Established Network Provider, Telstra

Telstra (ASX: TLS), which is contracted to provide multiple connections for all calls faced the investigation for the network outage that occurred on 4th May by the Department of Communications in assistance with Australian Communications and Media Authority. Nearly all the major telecom companies suffered a major hit by the network outage on 4th may, Friday Morning and the response time taken by Telstra to keep informed about the issue.

Gold MTF non-AMP

Nearly 25000 calls are made to the triple zero line (the lifeline for Australians during emergency and life-threatening conditions) across the country during a day and of which nearly 25% are not emergencies. The first outage which occurred around 2. a.m. on 4th May was the result of a fire at the cable pit near Orange in NSW. The cable which got damaged was cut in the early hours of the morning was one of the networks under three major links nationally. This whole event witnessed intermittent interruptions to triple zero services in regions that included New South Wales, South Australia, Western Australia, Victoria, Queensland, and Tasmania. Majorly all traffic lights in Victoria and telephone services and EFTPOS machines got affected by network disruption issue.Â

Telstra claims for having in place built in network redundancy which means alternative rerouting should happen in case of any such failure, and this was put to question after network outage issue in May. Experts raised questions on backup termed as redundancies, and the working thereof. Similar outage which was noticed by Fairfax Media was encountered during May 31 and was the result of offshore hackers swapping the phone line. Formal report by Government officials on the network outage during May incident reveals that more than 1400 calls to the Triple zero emergency services could not be connected. After the first serious disruptions on network lines, Department of Communications has made 11 recommendations of which 7 directed to Telstra directly and instructions were directed to improve network back-ups and to provide live reporting. The investigation conducted by Australian Communications and Media Authority came up with a report in which it mentioned clearly that during network disruptions a total of 3912 emergency calls were attempted by the customers out of which 1433 calls failed to connect on account of disruption and remaining calls were cancelled by the customers on account of long response time or voice announcement and call holding and waiting for an operator. The investigation team further added that on May 26, an unusual volume of calls was unintentionally directed from another carrier’s network to Triple Zero which caused heavy congestion on the lines.

Response time reliability of the service to the customers served as major concern for the rival providers and the same issue was highlighted in investigation too. Large penalties have been raised in past on account of failed emergency services connection and one such example from past is the penalty of around $400,000 paid in 2014 by TPG telecom.

In talks with Telstra, ACMA has recommended to develop new communication protocols to be used in events of another disruption and benchmarking its systems against international best practices. The Company has also entered into an enforceable undertaking with ACMA regarding making and maintenance of improvements which includes monitoring and fault detection processes and systems, network redundancy and diversity for emergency calls and infrastructure and software.

With this news surfacing up, TLS stock was slightly down on October 22, 2018 (3:40 PM AEST).

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.



The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.


We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK