Telstra failed to treat a crucial network timing system as a critical capability, while unclear ownership, weak oversight and a shortage of specialist expertise helped cause the nationwide outage that disrupted mobile services across Australia.
An independent investigation by Technology Audit Partners, released on Tuesday, found the failure stemmed from shortcomings in the way Telstra managed and maintained the systems underpinning its network.
The July 8 outage affected calls and data services, while knock-on disruption hit businesses, train networks and electronic payment systems. At its peak, Telstra said about 45 per cent of calls and data sessions on its mobile network were affected. ([telstra.com.au](https://www.telstra.com.au/exchange/triple-zero-senate-inquiry–opening-statement-from-vicki-brady))
Telstra outage began earlier than first reported
The report found the incident began at 2.50am, when maintenance was carried out on a Network Time Protocol server linked to a backup power fault. The equipment helps keep different parts of the mobile network synchronised.
When the device was restarted, a GPS card supplied incorrect date information because a software update had not been installed. Telstra has also acknowledged that an earlier design change to the equipment had not been properly documented, leaving the maintenance team unaware of how it would behave after being powered back on. ([telstra.com.au](https://www.telstra.com.au/exchange/triple-zero-senate-inquiry–opening-statement-from-vicki-brady))
Telstra did not identify the problem until about 4.20am, nearly 90 minutes after the failure began. The investigation found that the two main engineers associated with the upgrade were on mandatory stand-down at the time.
Vicki Brady, Telstra’s chief executive, accepted responsibility for the shortcomings identified in the review.
“The overarching finding is we did not prioritise our timing system inside our networks at the highest level as a critical capability, which is exactly what it should have been,” she told reporters. “That is a miss on our side.”
The outage also affected access to Australia’s Triple Zero emergency service. Telstra said 59,321 calls connected successfully, while 611 encountered an error and prompted welfare checks. A further eight unsuccessful calls were identified during the later review, with checks completed and no adverse outcomes reported. ([telstra.com.au](https://www.telstra.com.au/exchange/triple-zero-senate-inquiry–opening-statement-from-vicki-brady))
Telstra said its emergency-call “camp-on” process operated as intended, with about 3,200 more calls from its customers carried over the TPG and Optus networks than usual during the incident. ([telstra.com.au](https://www.telstra.com.au/exchange/triple-zero-senate-inquiry–opening-statement-from-vicki-brady))
Ms Brady said additional resources and technical expertise had since been assigned to the area. More than 30,000 customers have contacted Telstra following the outage, and the company has issued credits worth just under $1 million.
The chief executive was among 10 senior executives whose pay was reduced after the failure. Her total remuneration fell to $6.8 million, although that was still 11 per cent higher than the previous year.
“I fully accept the board’s decision on that,” Ms Brady said.
The Australian Communications and Media Authority is conducting a separate investigation into whether Telstra complied with its regulatory obligations, including rules governing emergency calls and customer communications during major outages. The inquiry could lead to penalties of up to A$30 million, although Telstra said it was too early to predict whether any breach or fine would result. ([acma.gov.au](https://www.acma.gov.au/acma-statement-telstra-outage))
