Telstra's network failure in 2025 led to hundreds of triple zero calls failing, mirroring Optus's outage earlier. John Quiggin argues these failures are inevitable under a policy framework prioritizing competition over reliable essential services.
Roots of the problem in 1990s reforms
The failures trace back to the 1990s policy reforms. Australia had a single telephone network run by Telecom Australia, which delivered cost reductions and service expansion for decades. The challenge of broadband fibre and cellular mobile telephony could have been met by maintaining that structure and building a single high-quality network for each technology. Cost savings would have extended coverage everywhere and ensured resilience. Instead, competition was prioritized through a common carrier model, eventually adopted for the NBN after a privatised Telstra failed to build broadband.
Duopoly persists with 70% market share
Telstra and Optus, the supposed temporary duopoly from the 1990s, still hold 70% of the mobile network between them—barely changed since the turn of the century. The shift to an NBN common carrier model for broadband increased competition slightly, but the duopolists retain an outsized share.
Current government responses insufficient
The Albanese government introduced a universal outdoor mobile obligation to ensure basic outdoor mobile coverage (SMS and voice) across Australia. There have been attempts to fix the triple zero system reliant on for-profit corporations, and a grant-based black spot program. Quiggin says these remain within the discredited neoliberal framework of infrastructure competition. That works for major cities with three physical networks, but outside cities, coverage is unsatisfactory. He calls for a national plan to expand coverage, including automatic roaming between networks.
Need for a national essential services network
For fragile emergency services, a more radical solution is needed: a national essential services network (ESN) with access to all carriers and a primary focus on resilience. Essential devices would use credentials allowing automatic connection to any available mobile network, covering voice, SMS, and priority data. Services like triple zero, emergency warnings, police, and hospitals would work through the ESN. Other countries, such as Finland, are following this route.
Quiggin concludes that the world is gradually recovering from the mania for privatisation and pseudo-competitive markets. He argues that essential infrastructure is too important to be left to private monopolies and duopolies, regulated or otherwise.
