Singapore Telecommunications (Singtel) has strategically appointed Stephen Rue to lead its Australian telecom operations, signaling a pivotal move in the company’s efforts to rebuild its reputation following a significant network outage. Rue, who currently serves as the Chief Executive of the Australian government-owned National Broadband Network, is set to assume his new role in November this year, as announced by Singtel on Monday.
The decision comes in response to a major network outage that rocked Singtel’s Australian arm, Optus, last year. This outage, which occurred on November 8, left millions of landline customers, including critical institutions like hospitals and government departments, without services. The fallout from the incident led to the resignation of Optus’s then-CEO, Kelly Bayer Rosmarin, prompting Singtel to embark on a global search for her replacement.
The outage was attributed to a response from Optus systems to a software upgrade at its parent company, Singtel. In light of this challenge and the need to rebuild customer trust, Singtel aims to leverage Rue’s extensive operational and financial expertise to significantly enhance service standards.
Paul O’Sullivan, Chairman of Optus, expressed confidence in Rue’s ability to drive positive change, stating, “We expect Stephen’s operational and financial background to lift service standards significantly for the benefit of our customers.”
Optus, a leading telecommunications operator in Australia boasting over 10 million subscribers, is confronting heightened competition, escalating expenses, and margin erosion. In response, the company is actively pursuing avenues to fortify its business operations.
In a recent development, Optus signed a substantial agreement with TPG Telecom valued at 1.17 billion Australian dollars (approximately US$773.4 million). As per the agreement, TPG Telecom will pay service fees for accessing Optus sites over an 11-year period, among other provisions.
Rue, in his new role, expressed a firm commitment to prioritize customer satisfaction and drive business excellence. “My job will be to take care of Optus’ customers, people, and business and to provide strong competition and choice,” he affirmed.
Despite the recent challenges faced by Singtel and Optus, the company’s shares exhibited a positive trend, with a 0.4% increase to S$2.39 on the Singapore Stock Exchange at the time of the announcement.
