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Optus chair Paul O’Sullivan says former CEO Kelly Bayer Rosmarin displayed bravery in adversity

Singtel Optus chairman Paul O’Sullivan says Kelly Bayer Rosmarin’s decision to step down as chief executive was a brave move designed to deflect heat away from the company.

Kelly Bayer Rosmarin being questioned by a Senate committee days before she resigned as CEO. Picture: AAP
Kelly Bayer Rosmarin being questioned by a Senate committee days before she resigned as CEO. Picture: AAP

Singtel Optus chair Paul O’Sullivan has praised the courage of former Optus boss Kelly Bayer Rosmarin for stepping down from her role to give the company a chance to repair its reputation.

In his first interview since the outage, he told The Australian: “Kelly was very brave the way she handled herself, in the outage, before the parliamentary hearing and then in stepping down so quickly to avoid becoming a ­distraction.”

Singtel Optus acts as a holding vehicle for Singtel assets in Australia.

Besides being Singtel Optus chairman, Mr O’Sullivan also heads the board of ANZ, which is a major Optus customer, among other companies.

He is a close ally of prominent director and former ANZ chairman David Gonski. ANZ has its annual meeting next month in Brisbane, the home of its banking target, Suncorp.

Mr O’Sullivan noted Ms Bayer Rosmarin’s decision should not be taken as a blueprint for other chief executives who suffered network outages. He said he phoned her on the morning of the outage to offer any assistance but noted she used the blueprint from last year’s cyber attack.

Mr O’Sullivan said he was not in the chain of command around the issue. But given his experience in the industry, he played a key role as a sounding board for Ms Bayer Rosmarin in her time at the company.

Singtel Optus chairman Paul O'Sullivan. Picture: Arsineh Houspian
Singtel Optus chairman Paul O'Sullivan. Picture: Arsineh Houspian

The cyber attack didn’t damage the Optus brand because it was seen as the victim. However, in combination with the outage and the delays in explaining what happened, the events have caused a rush of customers towards rival companies.

Mr O’Sullivan played down the impact of the brand damage, saying: “Australians want to support Optus as the challenger to the incumbent, Telstra.”

This competition included price, service and technology, he said.

He said ANZ had a strong level of resistance, with dual supply and redundancy support to help it through the outage.

Mr O’Sullivan also made it clear that, given his conflicts, he played no part in bank decisions on telecommunications.

Optus boasts a faster network than Telstra at a 20 per cent cheaper price.

These factors will be promoted in coming weeks as it attempts to maintain its market share.

Optus chief financial officer Michael Venter is the acting chief executive, pending the selection of a long-term replacement.

Former Crown Resorts executive Danielle Keighery starts with the company next month, running communications and ­marketing.

Mr O’Sullivan has stayed in the background during the public outcry, noting he had no operating control, with the chief executive reporting to Singtel.

But the long-term Optus chief executive, reigning from 2004 to 2012, is well known to many through his role at the company, after which he spent nearly two years in Singapore with Singtel.

This has given him a strong insight into Singtel governance and the wider telecommunications industry.

Ms Bayer Rosmarin’s resignation comes amid a broader shake-up of the telco.

Its Singaporean parent has ­installed former Optus business managing director Peter ­Kaliaropoulos in the newly created position of chief operating ­officer.

John Durie
John DurieColumnist

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Original URL: https://www.theaustralian.com.au/business/optus-chair-paul-osullivan-says-former-ceo-kelly-bayer-rosmarin-displayed-bravery-in-adversity/news-story/b63a0afcd510decfc27d525bcc0af6a5