When your Telco goes down, retail shops can’t operate as usual.
Key Takeaways
- Telstra says its higher fees are due to better network reliability.
- Many businesses using Tyro EFTPOS terminals were affected during the 8 July 2026 outage.
- More than 300 Triple Zero calls did not go through during the outage.
- EFTPOS systems with backup connections provide retailers with important protection against outages.
Telstra recently had a major outage. For many retailers, the biggest problem was that their EFTPOS machines stopped working. Tyro, a leading EFTPOS provider, confirmed its network was hit during the disruption.
For a retailer, typically losing EFTPOS access can mean sales drop by half.
Another issue was that many businesses lost the ability to communicate.
Most of us know that Telstra charges more than other telcos. When asked, they usually say it’s because their network is more reliable and covers more areas. For businesses, this can seem worth it because we rely on steady communication. Telstra also said its recent price increases would help pay for better networks.
But after this outage, it’s fair to question whether those reasons still make sense, especially given the high bills and lost sales.
Clearly, Telstra is not infallible despite premium pricing built on the promise of reliability. A quick glance at monitoring services like Downdetector shows localised faults are reported regularly.
Last Wednesday's failure, however, was not a small localised fault. It halted Victoria's V/Line regional trains and disrupted traffic lights across multiple states. Most seriously, Telstra confirmed that over 300 Triple Zero calls were logged but unsuccessful.
I suspect that this failure will cost Telstra heaps.
Action at Renewal Time
When your contract ends, ask around and get quotes from different providers. Don’t just take claims of better reliability at face value; ask what happens if the service fails. Keep in mind that a lower price doesn't always mean better protection, so compare your options carefully.
Some EFTPOS providers we handle include premium backup features which, at no cost to you, allow you to use your EFTPOS terminal when your internet or mobile network goes down. This means that you can still process transactions and avoid missing sales.
The Telstra outage in July 2026 showed that even a claimed premium service can fail without warning. Retailers pay more for peace of mind, but in this case, it often meant a higher bill with no extra protection.
PS POS Solutions once took Telstra to court over overcharging. We won about $40,000.
Written by:
Bernard Zimmermann is the founding director of POS Solutions, a leading point-of-sale system company with 45 years of industry experience, now retired and seeking new opportunities. He consults with various organisations, from small businesses to large retailers and government institutions. Bernard is passionate about helping companies optimise their operations through innovative POS technology and enabling seamless customer experiences through effective software solutions.
