ASX 300 telco fined $213,000 for endangering customer lives

The industry watchdog serves infringement notice to Aussie Broadband for putting its clients in danger.

| More on:
Female oil worker uses mobile phone at mine site

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

ASX-listed technology company Aussie Broadband Ltd (ASX: ABB) has been fined $213,120 for "large-scale breaches" of rules that protect Australians.

An investigation by the Australian Communications and Media Authority found that the internet service provider failed to provide customer data to the Integrated Public Number Database (IPND) more than 30,000 times between last November and May this year. 

The infringement endangered Aussie Broadband's own customers' lives as the IPND is used by the Triple Zero service to locate people in emergency situations.

The database is also used by the Emergency Alert Service to communicate to residents in areas affected by natural disasters.

'Alarming' failure in software

ACMA chair Nerida O'Loughlin said Aussie Broadband's failure was "unacceptable".

"While we are not aware anyone was harmed due to the breaches, it is alarming that Aussie Broadband did not have effective processes in place to identify that its customer information was not being provided for over six months."

The industry watchdog has directed Aussie Broadband to continue to comply with the IPND rules or risk court action that could result in penalties of $250,000 per breach.

"While the breaches should not have occurred, we are pleased to see Aussie Broadband moved quickly to upload the missing data once it was brought to its attention and has taken steps to comply in future," said O'Loughlin.

Aussie Broadband boss apologises

Aussie Broadband managing director Phillip Britt apologised for the error and accepted the penalty.

"Whilst we had several checks and balances in place, these did not go far enough and I'm confident that our new compliance checks will ensure this never happens again," he said.

"We are deeply sorry that this software failure went undetected leading to inaccurate records in the IPND database."

Aussie Broadband stated that it has now "implemented further redundancy measures, error notifications, independent monitoring and regular audits" to comply with the IPND rules.

According to the ACMA, it is on an "ongoing campaign" to improve the quality of the data in the IPND to better protect the public.

The watchdog has taken action against 30 telecommunications companies since 2018 for breaching IPND rules, resulting in almost $4 million fines.

Motley Fool contributor Tony Yoo has positions in Aussie Broadband Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Communication Shares

A woman looks shocked as she drinks a coffee while reading the paper.
Communication Shares

Bell Potter just raised its price target on this ASX communications stock

Is this soaring communications stock still a buy?

Read more »

Woman in a hammock relaxing, symbolising passive income.
Communication Shares

How many Telstra shares do I need to buy for $1,000 of annual passive income?

How easy would it be to earn a 4-digit income from Telstra?

Read more »

A woman wearing headphones looks delighted and animated on news she's receiving from her mobile phone that she is holding close to her face.
Opinions

Forget Telstra shares, I'd buy this ASX telco stock instead

This telco is set to soar higher.

Read more »

A man wearing a colourful shirt holds an old fashioned phone to his ear with a look of curiosity on his face as though he is pondering the answer to a question.
Communication Shares

Would Warren Buffett buy Telstra shares?

Would Warren Buffett call on Telstra for a place in the Berkshire Hathaway portfolio?

Read more »

Two men and a woman sitting in a subway train side by side, reading newspapers.
Communication Shares

Which ASX media share to buy: News Corp, Nine or REA Group?

Brokers see upside for all 3 but favour one.

Read more »

A man is connected via his laptop or smart phone using cloud tech, indicating share price movement for ASX tech shares and asx tech shares
Communication Shares

Which telco challenger brand could deliver a 33% return?

Jarden picks a winner in the competitive telco sector.

Read more »

Middle age caucasian man smiling confident drinking coffee at home.
Communication Shares

$20,000 of Telstra shares can net me a $1,774 passive income!

This business is projected to deliver major income…

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, holding a mobile phone in his hand while thinking about something.
Communication Shares

This is the stock price I would buy Telstra shares at

What is the right price for Telstra?

Read more »