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Telstra outage exposes Australia's reliance on carriers

Telstra outage exposes Australia's reliance on carriers

Fri, 10th Jul 2026 (Today)
Mark Tarre
MARK TARRE News Chief

Telstra has suffered a nationwide mobile network outage affecting customers and businesses across Australia, intensifying scrutiny of the country's reliance on a small number of carriers for critical connectivity.

The incident disrupted mobile services used by commuters, emergency responders and commercial users in multiple states. Banks, retailers, logistics operators and healthcare providers reported interruptions as systems that depend on mobile links for payments, authentication and coordination went offline or reverted to manual processes.

Operational technology specialists warned that the impact on critical infrastructure extended beyond dropped calls and slow data. Many industrial control and monitoring systems continued to run, but operators lost the visibility and control functions that rely on continuous connectivity.

"Telstra's 5G outage today highlights how dependent Australia's critical industries have become on mobile connectivity - not just for business communications, but for the safe operation of cyber-physical systems nationwide," said Jason Pearce, Field CTO, APJ, Claroty.

Pearce said sectors including transport, mining, utilities, manufacturing, data centres and healthcare face particular risk when telecommunications networks fail. Control systems on sites often keep operating, but the links that support central oversight and coordinated response can drop away.

"In sectors such as transport, mining, utilities, manufacturing, data centres and healthcare, operational technology may continue running during a telecommunications outage, but organisations can lose the ability to monitor assets, receive alarms, coordinate field teams, authenticate remote access and respond safely to incidents. In some cases, that loss of oversight is enough to force a precautionary shutdown and can create a cascading effect across sectors that might appear unrelated," Pearce said.

Healthcare operators face a similar pattern of risk. Clinical and building systems typically run locally, but mobile-based workflows and safety functions can stall when a carrier experiences a prolonged failure.

"Healthcare facilities face similar risks. While most critical medical and building systems should continue operating locally, mobile outages can disrupt ambulance coordination, on-call communications, duress alarms, remote monitoring, cold-chain alerts, facilities maintenance and community care services. The concern is often not that a device immediately fails, but that staff lose visibility of its condition or cannot respond when something changes," he said.

Resilience planners have also raised concerns about concentration risk in national digital infrastructure. Many organisations that believe they have backup connectivity discover that redundant services still depend on the same underlying carrier assets.

"The broader lesson is that resilience cannot rely on a second service that shares the same underlying carrier infrastructure. Ultimately, many service providers rely on the same mobile infrastructure or wholesale networks. Organisations need genuine diversity across carriers and technologies, including fixed communications, radio and satellite where operational consequences justify it. They must also ensure critical systems can operate autonomously and that alarms remain visible locally when cloud or mobile connectivity is unavailable," Pearce said.

Pearce also pointed to cybersecurity concerns during outages. Temporary fixes that bypass standard remote-access pathways can introduce new vulnerabilities as teams scramble to restore operations.

"From a cyber risk perspective, outages can also create secondary exposure. When approved remote access, mobile authentication or vendor connectivity fails, teams may be tempted to introduce insecure workarounds to restore operations quickly. For boards and executive teams, the key question is no longer simply whether critical assets will keep running if mobile networks fail. It is whether the organisation can still see, control and safely respond to those assets during a prolonged telecommunications failure. Today's outage should prompt every critical infrastructure operator and healthcare provider to ask: which services would we have to restrict or suspend if our primary mobile carrier were unavailable for eight, twelve or twenty-four hours?" he said.

Commercial sectors that depend on real-time payments and online services also reported significant disruption during the downtime. The outage affected point-of-sale terminals, app-based ordering and remote service delivery in many locations.

Andrew Pears, Chief Executive Officer of Permaconn, said the outage exposed the risk of relying on a single network. Thousands of businesses across Australia were disrupted, particularly those that depend on payments, with retailers, food and beverage operators, hospitality venues and service providers among the hardest hit. Utilities providers and businesses that offer "always on" services, such as EV charging operators, were also affected.

"Any business relying solely on one network is putting itself at risk. It's not just major outages either; networks drop out all the time, so you don't want to be caught out at a crucial moment for your organisation. Not enough business leaders and owners are aware that solutions exist to help avoid the disruption and loss a major outage causes. To protect themselves, leaders should build network redundancy into their organisation so they are not reliant on one provider.

"In simpler terms, you need a solution that switches your connection from the network that has gone down to another provider to avoid downtime. This outage highlights the importance of connectivity solutions supported by dual-network services that automatically switch networks when a provider goes down. There are hundreds of thousands of our devices across the country with our Dual SIM service, and not a single one of them was affected. That's the peace of mind network redundancy gives you."