It has been a tough couple of years for Optus CEO Kelly Bayer Rosmarin, who has fallen on her sword following this month’s disastrous network outage.
Singtel Telecommunications Ltd, Optus’ parent company, confirmed Bayer Rosmarin’s departure on Monday morning, appointing chief financial officer Michael Venter as the interim CEO.
Bayer Rosmarin, who assumed the leadership role at Optus in April 2020, faced considerable challenges during her tenure.
Notably, she navigated through a cyberattack last year, which compromised the personal data of 10,200 customers, including sensitive details like passport, driver’s licence and Medicare numbers. The incident, along with her management of the recent network outage, attracted intense scrutiny and criticism.
“On Friday I had the opportunity to appear before the Senate to expand on the cause of the network outage and how Optus recovered and responded,” Bayer Rosmarin said in a statement.
“I was also able to communicate Optus’ commitment to restore trust and continue to serve customers. 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.
“It’s been an honour and privilege to lead the team at Optus and to serve our customers. I am proud of the team’s many achievements and grateful for the support of the Optus team, [Singtel Group CEO Yuen Kuan] Moon, and the group. I wish everyone and the company every success in the future.”
Moon is now focused on regaining customer trust.
“As the team works through the impact and consequences of the recent outage and continues to improve, Optus’ priority is about setting on a path of renewal for the benefit of the community and customers,” he said.
Businesses unlikely to receive compensation
In her statement last week’s Senate enquiry, Bayer Rosmarin urged businesses not to seek compensation for lost business.
Recent reports indicate that the recent Optus network outage, which lasted for 11 hours, has led to significant financial losses for small businesses, with some reporting losses up to A$10,000. The outage severely affected payment and booking systems.
Under Australian consumer law, telecommunications companies are required to refund usage costs during outages but not necessarily compensate for indirect losses incurred due to lack of access to their services. In response, Optus has offered affected customers the equivalent of A$100 in free data.
Bayer Rosmarin last week emphasised the company’s approach towards addressing customer concerns. “We’re focusing on the specific scenario of each customer, striving to do the right thing for our long-term relationship with them,” she stated.
However, she noted the lack of precedent for telecommunications companies or other essential service providers to cover consequential loss. “This is a broader issue than just Optus or telecommunications. It extends to other essential services and utilities, and requires a more comprehensive discussion,” Bayer Rosmarin added.
Despite this stance, Optus has already paid A$36,000 in compensation claims, with Bayer Rosmarin indicating a potential A$430,000 bill. The company has been contacted by approximately 8,500 customers and small businesses regarding the outage.
The estimated financial impact of the outage by Optus contrasts sharply with an assessment by Pan-Asian bank Maybank, which predicts damages could reach up to A$400 million.