Optus hacking: ‘deep pockets’ mean telco will survive saga

OPTUS will survive the loss of frustrated customers, cost of paying for thousands of passports and legal class actions resulting from its massive data breach.

OPTUS will survive the loss of frustrated customers, cost of paying for thousands of passports and legal class actions resulting from its massive data breach.

AMP chief economist Shane Oliver said the telco’s Singapore based owner SingTel had publicly backed the company and had “deep pockets” to do so.

“SingTel has issued statements saying it is backing Optus so there is no doubt it will survive this,” Mr Oliver said.

The embattled telco has not responded to a request to foot the bill for replacing millions of Australians’ passports in the wake of its data breach.

Anthony Albanese, who met with Optus chief Kelly Bayer Rosmarin on Saturday, revealed the company has yet to respond to the government’s demand.

Prime Minister Anthony Albanese says Optus has yet to respond to the government’s demand.

Singapore based owner SingTel had publicly backed Optus and has “deep pockets” to do so.

“The taxpayers shouldn’t pay for this. Our view is very clear. We’ll continue to pursue that view,” the Prime Minister told 5AA radio.

“We await Optus to respond to our very clear, written request to them.”

In a statement to The Australian the Singapore listed company said it had “extended our fullest support” to chief executive Kelly Bayer Rosmarin and the management team “as they work to minimise inconvenience and risk to customers”.

That could mean paying for the replacement of thousands of passports and driver‘s licences whose details have been released. Two law firms, Slater and Gordon and Maurice Blackburn have also indicated they are considering launching compensation claims on behalf of customers.

Mr Oliver said not all disaffected customers would quit the company. “You have got to stay mad for a really long time to go through the hassle of changing your plan,” he said.

University of Sydney marketing expert Professor Ulku Yuksel said Optus could survive the fallout from the data breach with a good corporate communications strategy.

Kelly Bayer Rosmarin, Optus CEO.

“There was a call to boycott BP after they polluted the oceans of the entire world and they survived,” she said.

“The trick is not to keep focusing on what has gone wrong. Just say you are handling it and then draw attention to what you are doing well.”

Prof Yuksel said she suspected the things that Optus does well could have inspired the data breach through “industrial espionage”.