Blaming the halt in the service on a software glitch in the authentication server, BigPond was down from 7pm to 3am on Wednesday, June 13 and again from 8.30am to 4pm the following day.
While Telstra spokesperson Stuart Gray says the software has been fixed, he admits they haven't yet discovered the root of the problem.
"We are currently speaking to the vendors of the software and there will be a full-scale investigation into the problem," said Gray.
According to Gray, the frequent drop outs in the service were caused by a different problem, this time with the mail server, but he insists the fault was fixed last Friday, 8 June.
Customers hoping to receive compensation will be further frustrated to find that Telstra will be refusing any claims unless the customer is on a business contract.
"For our home customers, there will be no rebate offered -- they must pay for any cost of using the service. It is different for business customers but if they want a rebate they will have to apply and outline exactly what they have they lost," said Gray.
Unfortunately the compensation will not cover the many small business customers who are signed to a home contract.