The big issue at Optus is not who will get the top job, but who will want to take the top job at a Company that is seriously broken, is in disarray and facing months of scrutiny, fines, and a high level of uncertainty about their future following their latest network debacle.
Consumers are already deserting the carrier as they did after Vodafone had their Vodafail moment and big business many who were burnt during the recent Optus network crash are going to be wary of staying with Optus who were carving out small chunks of growth after their hack attack in 2022.
Yesterday Singtel management the owners of Optus, announced that they have parachuted a former Singaporean telecommunications executive and former StarHub chief executive Peter Kaliaropoulos in as chief operations officer while chief financial officer Michael Venter would become interim CEO.
The big issue is who else needs to go, before Optus can get back to being in a competitive position, to compete against a surging Telstra who is not only taking market share but are now working on stripping big chunks of profitable business away from Optus.
Some are tipping, Former NSW Premier Gladys Berejiklian as a potential candidate to replace Kelly Bayer Rosmarin the former CEO of Optus who quit yesterday following her recent Senate appearance which exposed more questions about Optus and their modus operandi around their problem plagued network.
The only problem is that Berejiklian is waiting for a court date to clear her name.
Next month her legal team will seek a judicial review of the NSW Independent Commission Against Corruption’s finding that she engaged in “serious corrupt conduct” while Premier.
Then there is the issue whether she will enter the Federal arena if cleared with some tipper her as potential Prime Minister material.
Optus owners the Singapore Telecommunications Company have already initiated a global search for the next Optus chief executive sand this could take months.
Then there is the issue of whether Optus will return to a male CEO with a wealth of telco experience, with insiders telling ChannelNews that one of the issues for Rosmarin was that she was “too focused on her own image” and that she failed on several fronts when it came to management issues, such as ensuring that her senior management team carried SIM cards of competitors as opposed to Optus SIM mobiles that failed to work when needed.
Singtel chief executive Yuen Kuan Moon said Optus’s “priority is about setting on a path of renewal for the benefit of the community and customers.” On this score, appointing Berejiklian could be viewed as regressive.
“Optus is an integral part of our group’s business,” Yuen said. “We view the events in recent weeks very seriously. We fully recognise the importance of Optus’s role in providing connectivity services to the community and the importance of network resiliency and security. That is a top priority in all markets where our companies operate in.”
The task ahead for any new CEO is set to be daunting as they are going to have to deal with not only questions about the network, but potential Government fines also as well as rebuilding the brand image of Optus, to regain market share on multiple fronts.
At a retail level Harvey Norman, who got into bed with Optus in 2019 in an effort to take on a surging JB Hi Fi, who are now the biggest seller of smartphones in Australia, and are a key Telstra partner, the problems at Optus have suddenly become a major problem for Harvey Norman who are already facing their own problems with sales slumping and profits evaporating.
Optus is on the nose and consumers are flocking to services from the likes of Boost Mobile and Woolworths mobile services that operates on the Telstra network as opposed to doing a deal at Harvey Norman.
Around the water tanks at Optus there is a lot of discussion as to who could be next to go with some tipping the Managing Director of the Network Lambo Kanagaratnam as one person who could be facing a sudden exit.
The facts are that there were many at Optus who were involved in operating the network in a way that led to its collapse and they need to also be held accountable.
Then there is the non-existent communications strategy that was the target of considerable opprobrium from senators and communication specialists.
One thing is certain Kelly Bayer Rosmarin is not the only executive who is going to get a pink slip following their latest network crash, because there is one thing that Singtel the owners of the network hate and that is public egg on their faces which is what the Optus debacle has exposed.
