Economy

Australian telco Optus’ CEO quits after network outage













Optus Logo

The head of Australia’s second-largest telco Optus resigned on Monday, cutting short a more than three-year tenure marred by a massive network-wide outage and one of Australia’s largest data breaches.

Parent Singapore Telecommunications announced the resignation of Optus CEO Kelly Bayer Rosmarin days after a network-wide outage left nearly half of Australia’s 26 million people without phone or internet for 12 hours.

Chief Financial Officer Michael Venter will take over as interim CEO, Singtel said in a statement.

Ms. Rosmarin said she decided to resign after time for personal reflection following a parliamentary hearing on Friday where Optus executives said the company had no contingency plan in place for an outage of that scale.

“Having now had time for some personal reflection, I have come to the decision that my resignation is in the best interest of Optus moving forward,” she said in the statement.

Appointed in April 2020, Rosmarin headed Optus through two national scandals that have tarnished the reputation of the telco giant. A massive data hack last year exposed the personal data of 10 million Australians and triggered a class action lawsuit and multiple investigations from regulators.

The company was dealt a fresh blow earlier this month when a 12-hour network blackout hit more than 10 million Australians, triggering fury and frustration among customers and raising wider concerns about the telecommunications infrastructure.

Optus executives told the parliamentary hearing on Friday the telco provider had not foreseen a network-wide outage and so had no backup plan in place.

Ms. Rosmarin told the hearing hundreds of calls to Australian emergency hotline Triple-0 failed because of the outage although the telco had followed up all incidents and “thankfully everybody is OK”.

Singtel said last week a fault in Optus’ security systems caused the failure, not a routine software upgrade as previously suspected.

Ms. Rosmarin increased Optus’ market share and improved financial performance during her tenure, Single said in a statement.

“We recognize the need for Optus to regain customer trust and confidence as the team works through the impact and consequences of the recent outage and continues to improve,” SingTel Group CEO Yuen Kuan Moon said in a statement.

Peter Kaliaropoulos was also appointed to a newly created position of chief operating officer. – Reuters

Jino Nicolas




Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

Your daily news source covering investing ideas, market stocks, business, retirement tips from Wall St. to Silicon Valley.

Disclaimer:

TheProficientInvestor.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 TheProficientInvestor. All Rights Reserved.

To Top