Optus CEO Kelly Bayer Rosmarin has been accused of downplaying the consequences of Wednesday’s mass outage on small businesses after the telco boss appeared to question why a Sydney barber could not trade during the reception blackout.
News.com.au reports North Sydney Barbers was unable to process EFTPOS transactions on Wednesday morning because of the outage.
Only a small percentage of customers carry cash, manager Jake Azar told the outlet.
Some customers were directed to withdraw cash from an ATM after their haircut but never returned, he said, leading the business to close its doors for the day.
Speaking to reporters about the outage, and its effect on businesses like North Sydney Barbers, Rosmarin said she was “disappointed” the barbershops could not trade.
Cutting hair “seems like one of the few things you can do without connectivity,” Rosmarin said.
In response to Rosmarin’s comments, Azar told News.com.au it is “a bit much for her to throw me under the bus when she can’t even do her job”.
“If she does her job, I can do my job,” Azar said. “But I can’t do my job if she’s incapable of doing her job.”
Her commentary has caught the attention of the online community, with social media users saying modern enterprises are heavily reliant on internet connectivity, even if they offer physical services and can handle cash transactions.
Rosmarin “obviously had no clue” about the realities of suddenly operating an EFTPOS-reliant business without internet connectivity, one commenter wrote.
The telco boss could have shown more empathy to affected customers, “particularly those thousands of small businesses who lost substantial amounts of income from the Optus blanket outage,” another commenter said.
Earlier, a Melbourne chef told SmartCompany the Optus outage had forced his pizzeria to close for the day, even though reception returned before the busy dinner period.
A New South Wales boutique owner said they lost physical sales during the outage, and internet connectivity problems meant even online orders could not be fulfilled.
Optus has offered 200 GB of mobile data to eligible customers as an apology for the outage.
However, Financial Services Minister Stephen Jones yesterday said compensation for small businesses that lost a day’s trade should be “on the table”.
Small business support services have also backed traders in their claims against the telco.
In a statement, the Office of the NSW Small Business Commissioner said “Optus network users should be automatically reimbursed for the period in which their service was disrupted”.
“Many small businesses suffered substantial financial losses due to the outage, as they were unable to operate at their usual capacity or at all,” said Commissioner Chris Lamont.
“In my view, it is reasonable to expect network providers to work with their customers to address these costs.”
The NSW Small Business Commissioner has also asked the Telecommunications Industry Ombudsman (TIO) to assist small businesses in pursuing refunds and compensation.
The TIO is authorised to direct telcos to pay up to $100,000 in compensation for financial loss, and up to $1,500 for non-financial, non-privacy complaints.
Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
