Telstra (OTC:TLGPY) Group Ltd (ASX: TLS) saw its shares rise by over 2% on Wednesday, following a nationwide network outage experienced by rival Optus. The disruption, which began around 3 am, affected 10 million users and businesses across Australia, leading to speculation of long-term gains for Telstra if disgruntled Optus customers decide to switch providers.
The outage not only left millions of Australians without mobile and internet services but also impacted several businesses listed on the ASX. Among those affected were Westpac Banking (NYSE:WBK) Corp (ASX: WBC), Ramsay Health Care Ltd (ASX: RHC), and Insurance Australia Group (ASX: IAG)-owned NRMA insurance, all of which faced inbound call issues. EFTPOS terminal operators such as Tyro Payments Ltd (ASX: TYR), Smartpay Holdings Ltd (ASX: SMP), and Block Inc (ASX: SQ2) were expected to see fewer transactions due to their network dependence on Optus.
Commonwealth Bank of Australia (OTC:CMWAY) (ASX: CBA) customers might have faced problems receiving NetCode texts for account access due to the mobile meltdown. Additionally, Melbourne's hospitals, trains, and entities like Aussie Broadband Ltd (ASX: ABB (ST:ABB)), which relies on Optus for its mobile customers, were also affected.
The incident caused a more than 1% increase in Telstra's shares, despite a static S&P/ASX 200 Index (ASX: XJO). In contrast, Singtel's stocks fell by 4.5%. The ASX200 saw a quarter per cent gain, led by the IT sector's two per cent increase.
Optus confirmed the issue at 5:47 am and is currently investigating the root cause, believed to be deep within their core network. The Department of Home Affairs dismissed any involvement of a cyber attack.
This disruption comes a year after Optus experienced a significant cyber attack. Despite the ongoing investigation, investors are optimistic about Telstra's potential for business uplift if customers decide to switch providers due to the disruption.
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