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Highlights
- Tasmania faces a state-wide internet and mobile network outage.
- Telstra, Optus, TPG Telecom customers impacted by the cut off network.
- TLS share price edged down over 2% on the ASX today (2 March 2022).
Tasmania suddenly entered an internet blackhole yesterday. The entire state lost internet and mobile network coverage for five long hours as two undersea fibre cables were ‘accidentally’ cut. The major internet outage disrupted business and even hospitals across the state. Telstra Corporation Ltd (ASX:TLS) who owns the cables reportedly said that it was investigating the matter on an urgent basis. However, Tassie customers of Telstra and other telecom operators including Optus and TPG Telecom had to face the outage for five hours before they could come back online.
How did Telstra & Optus handle the Tasmania outage?
According to media reports, a Telstra spokesperson said that the outage seemed to be a result of two separate cable cuts on the main routes into Tasmania. While one cable was cut during civil works, the other cable according to Telstra was a remote under sea cable and techs are to still assess the total damage and impact.
Telstra remained on its toes to resolve the issues faced on its fixed and mobile data services alongside some voice calls which were not getting through. Even an Optus spokesperson told media houses that the company was working with the network provider on service restoration, remaining committed to keeping its customers connected. On the other hand, TPG Telecom acknowledged the fact that its customers might either have limited or no service in Tasmania.
Image Source © Akrasov | Megapixl.com
Why did a Telstra cable cut affect TPG Telecom and others?
Telstra Corporation Limited has recently signed a network sharing agreement with TPG Telecom, as reported in its ASX release dated 21 February 2021. The network sharing agreement was signed by both the telecom operators to significantly enhance its spectrum position and fixed wireless service offerings in regional and rural Australia. Under the deal, TPG Telecom was to access about 3,700 of Telstra’s network assets, increasing its current 4G coverage and essentially coming on the same network. The internet and mobile network cut off being acknowledged by TPG Telecom on Tuesday seems to be a result of this network sharing deal.
Also, while the outage is being called as ‘extremely rare’, it highlights the dependence of telecom networks on optic fibre cable. Reportedly, the Telstra owned cable network across the Bass Strait is configured with two main links providing backup for each other, and a third one being available for priority traffic, like triple-0 and voice services. It is very rare for both main links go down, which occurred on Tuesday. However, not just Telstra but other telecom customers were also impacted as they use the same cables.
Also read-Why Telstra (ASX:TLS) is on investors’ radar amid Russia-Ukraine conflict
What is up with Telstra Corporation Limited’s share price?
Today TLS shares are down over 2% in comparison to yesterday’s close on the ASX. While it is a big thing to lose out on a state-wide network coverage, TLS shares are not falling for this reason. Telstra Corporation Limited shares have gone ex-dividend and generally shares take a downturn on such events as investors go selling of shares after receiving the dividend.
As of date, Telstra shares have a dividend yield of about 2.82% and the share price has only moved around 27% in a year.
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