Kelly Bayer Rosmarin, the CEO of Optus, announced her resignation on Monday, following a series of controversies that damaged the reputation and trust of Australia’s second-largest telecommunications provider.
Network outage affects millions of customers
The most recent crisis that triggered Bayer Rosmarin’s departure was a nationwide network outage that occurred on Wednesday, November 8, 2023. The outage lasted for up to 14 hours and affected millions of Optus customers. Who was unable to access the internet or mobile phone services.
The outage also disrupted essential services, such as hospitals, schools, financial institutions, and government departments. Which relies on Optus for communication and data transmission. Some customers reported being unable to make or receive emergency calls, pay bills, access online banking, or use public transport.
Optus blamed the outage on “a technical network fault” and said it was working to restore services as soon as possible. However, the company was criticized for its poor communication and delayed response to the incident. Optus did not issue a public statement until several hours after the outage began, and did not inform the federal government or the Australian Communications and Media Authority (ACMA) of the situation.
Optus also faced backlash from customers and politicians for its inadequate compensation offer. The company said it would provide free data to all customers for the weekend following the outage, but many customers said this was a “hollow gesture” and demanded refunds or credits. Some customers also threatened to switch to other providers or join class action lawsuits against Optus.
Cyber attack exposes the personal data of customers
The network outage was not the first scandal that tarnished Bayer Rosmarin’s tenure as Optus CEO. In September 2022, Optus suffered a major data breach that exposed the personal information and other sensitive data of about 9.8 million customers to cybercriminals.
The data breach was caused by an unsecured application programming interface (API) that allowed hackers to access customer records, including names, addresses, phone numbers, email addresses, credit card details, and account passwords. The breach was discovered by a security researcher, who notified Optus and the media.
Bayer Rosmarin initially claimed that the data breach was the result of a sophisticated cyber attack, but later admitted that it was a simple exploit of a vulnerable API. Optus CEO also claimed that no data had been stolen because everything was encrypted, but this was proven to be false by the security researcher, who demonstrated that he could decrypt the data.
Bayer Rosmarin apologized for the data breach and said Optus was taking steps to improve its security and protect its customers. She also hired Deloitte to conduct an investigation into the incident and said Optus was determined to find out what went wrong. However, her response was deemed too little, too late, and too dishonest by many customers and observers.
The data breach resulted in Optus being named as the least trusted brand in Australia, according to a survey by Roy Morgan. It also sparked outrage from politicians on both sides of the parliament, who called for Bayer Rosmarin to resign or be sacked. The ACMA launched an inquiry into the data breach and said Optus could face fines or sanctions for breaching the Privacy Act and the Telecommunications Act.
Senate inquiry grills Bayer Rosmarin
Bayer Rosmarin’s resignation came three days after she faced a grueling two-hour Senate inquiry into the network outage. Inquiry, which was initiated by the Greens and the Coalition, examined how Optus communicated with its customers, what steps it was taking to avoid a repeat of the outage, and what compensation it was offering customers.
The inquiry also looked at the government’s role in helping customers get fair compensation and ensuring essential services could still be accessed during outages. The inquiry was chaired by Sarah Hanson-Young of the Greens, who questioned Bayer Rosmarin about the impact and causes of the outage, as well as the previous data breach.
Bayer Rosmarin admitted that the outage was unacceptable and apologized for the inconvenience caused to customers and the community. She said Optus was still investigating the root cause of the outage and would share the findings with the ACMA and the public. She also said Optus was reviewing its compensation policy and would consider offering more than free data to affected customers.
However, Bayer Rosmarin’s answers did not satisfy the senators, who accused her of being evasive, defensive, and unaccountable. They also criticized her for not informing the government or the ACMA of the outage, and for not having a contingency plan or a backup network. They also questioned her leadership and competence and suggested that she should resign or be removed.
Bayer Rosmarin steps down
On Monday, November 20, 2023, Bayer Rosmarin announced her resignation as Optus CEO, effective immediately. She said she was proud of her achievements at Optus, but recognised that it was time for a change. She thanked her colleagues and customers for their support and wished the company well for the future.
Bayer Rosmarin’s resignation was accepted by Singtel, the parent company of Optus. Which said it respected her decision and appreciated her contributions. Singtel said it would announce an interim CEO for Optus soon and would launch a global search for a permanent replacement. Singtel also said its priority was to restore trust and confidence in Optus and to deliver the best service and experience to its customers.
Bayer Rosmarin’s resignation was welcomed by customers and politicians, who said it was overdue and necessary. They said Optus needed a new leader who could fix the problems and improve the performance of the company. They also said Optus needed to be more transparent, accountable and customer-focused, and to invest more in its network and security.