Optus has rapidly become one of Australia’s most toxic corporate asset, with would-be buyers circling the embattled telco while privately admitting the brand may already be “worthless” and the business close to unsaleable despite it’s owners Singapore based Singtel still looking for a “high price”.

Multiple private equity insiders have told ChannelNews that Optus has been crippled by years of mismanagement, repeated outages and mounting reputational damage—leaving investors struggling to answer one brutal question: how bad is the rot, and how much worse will it get?

“The problem isn’t interest,” one senior private equity executive said. “The problem is figuring out how much of the damage hasn’t hit yet. This thing could still fall a lot further.”

Several insiders said any buyer would likely scrap the Optus name entirely, launching a new brand and product stack from scratch—potentially pivoting away from traditional mobile networks toward satellite and wireless based services.

Brand “Broken” for Years

Brand experts consulted by investors have reportedly warned that Optus’ reputation is so badly damaged it may take years to recover—if it recovers at all. Some argue the damage may be permanent.

“There are still risks sitting inside the business that haven’t surfaced yet,” one source said. “That’s what’s scaring buyers.”

In a move widely seen as preparation for a fire-sale, Optus has begun buying back its remaining franchised stores to regain control of sales practices and clean up its retail footprint. One private equity firm confirmed it was reviewing Optus but ruled out inheriting its franchise network.

“How do you even price this thing?” another executive asked. “It’s like trying to value a house while it’s still burning.”

“Only Works If It’s Dirt Cheap”

Telecom entrepreneur Peter Adderton, founder of Boost Mobile, confirmed he has already “run a ruler over” Optus—and delivered a brutal assessment.

“The only way anyone buys Optus is if it’s cheap,” Adderton said.

“If it comes cheap enough, you strip it back, repackage it and rebuild it. Otherwise, forget it.”

Adderton warned that Singtel, Optus’ Singapore-based owner, is unlikely to accept the reality of how far the brand has fallen.

“The expectations up north are higher than what anyone is going to pay,” he said.

“The damage from current and past management hasn’t even fully hit the bottom line yet. That’s the scary part. What we don’t know is how much pain is still coming—and how much it’ll cost to fix.”

Telco Valuations in Freefall

Adderton said Optus is just one casualty in a global telco bloodbath, with carrier valuations collapsing as costs explode and growth stalls.

In the US alone:

Comcast has shed up to 40% of its value

AT&T is down around 15%

Verizon is sliding

Only T-Mobile is growing—and it’s the exception, not the rule

“I don’t know a private equity firm on the planet paying top dollar for a telco right now,” Adderton said.

“These businesses are laying people off, cutting costs, and still losing value every single day. At what point do you admit the model’s broken?”

Satellite Won’t Save Them

While satellite technology is being hyped as the future—particularly in Australia’s vast regional areas—Adderton poured cold water on claims it will rescue struggling carriers.

“Are customers really going to pay an extra $80 a month just in case they need satellite in every Country of the world including Australia?”

Despite Optus and Telstra partnering with Elon Musk’s Starlink, Adderton said Musk is unlikely to buy an Australian carrier any time soon.

“He’ll keep partnering, not buying,” he said. “He still needs spectrum and chipset tech before he makes a move.”

Leadership Under Fire

Sources close to the situation said Optus CEO Stephen Rue inherited a business hollowed out by years of cost-cutting and weak leadership after Kelly Bayer Rosmarin resigned following the disastrous 2023 nationwide outage.

“Rosmarin was out of her depth and surrounded by poor management,” a former telecom executive said.

Adderton said buyers are circling—but they’re waiting for Optus to bleed further.

“They want it cheap,” he said. “And they want it in a way Singtel probably won’t accept.”

For now, the smart money is standing back.

“If you’re an investor,” Adderton said, “watching these guys implode from the sidelines is probably the smartest move you can make.”