Conec2 fallout leaves Australians without phone, internet service

13 Jun 2014

Thousands of Australians lose their landline and internet service.

As thousands of Australians lost their landline and internet service with the recent collapse of Conec2, an official review has got underway to minimise any future disruption caused by a provider going under. 

The fall-out from the Conec2 incident left over 50,000 customers being forced to find a new provider. The implications of the collapse are wide-reaching with government officials now calling for amendments to be made to the Telecommunications Act. 

A spokesman for the Communications Minister, Malcolm Turnbull, made it clear that his office was collaborating with the Comms Alliance in response to the recent events and that an “industry-based” solution is being sought. 
Comms Alliance CEO John Stanton was in agreement that something must be done to prevent a similar level of service disruption in future. However, he also acknowledged that the unique circumstances surrounding the recent collapse of Conec2 were not necessarily typical of what might happen in future.

“In previous – thankfully rare – situations of this type, industry players have typically been able to mobilise cooperatively and minimise disruption to customer services," he said.

“Each financial event is unique, however, and the current situation has been made more difficult by the complex structures and inter-relationships between some of the involved entities."

This was in follow-up to a remark made by Nick Xenophon, an independent Senator, who suggested that a “default telco provider” should be in place to provide continuity of service for any customers affected by their provider going under.
Conec2 went into administration this month following their acquisition of ispONE last year.  

More Telecom has been on hand to help many of the affected Conec2 customers reconnect as quickly and as cheaply as possible. 

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