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Optus

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This article is about the telecommunications company. For the satellites, seeOptus (satellite).

Singtel Optus Pty Limited
Company typeSubsidiary
IndustryTelecommunications
Founded1981;43 years ago(1981)
(as AUSSAT)
HeadquartersMacquarie Park,New South Wales,Australia
Area served
Australia
Key people
ProductsFixed telephony
Mobile telephony
Internet access
Cable television
Leased lines
Data transmission
RevenueIncreaseA$8.05 billion (2023)[1]
IncreaseA$2.09 billion (2023)[1]
IncreaseA$286 million (2023)[1]
OwnerSingtel[2][3][4]
Number of employees
7,572 (2023)[5]
DivisionsOptus Sport
Amaysim
Websiteoptus.com.au

Singtel Optus Pty Limited(commonly referred to asOptus) is an Australiantelecommunicationscompany headquartered inMacquarie Park,a suburb in theNorthern Sydneyregion ofSydney,New South Wales,Australia. It is awholly owned subsidiaryofSingaporeantelecommunications companySingtel.

Optus is the second-largest telecommunications company in Australia, with over 11 million customers as of 2023.[5]Its mobile network covers 98.5% of the Australian population, with plans to cover 100% of Australia by 2025 through its partnership withSpaceX.[6]

History

[edit]

AUSSAT and deregulation (1981–1990)

[edit]

Optus can trace its beginnings back to the formation of the Government-owned AUSSAT Pty Limited in 1981. In 1982, Aussat selected the Hughes 376 for their initial satellites, with the first, AUSSAT A1, launched in August 1985.[7]AUSSAT satellites were used for both military and civilian satellite communications, and deliveringtelevisionservices to remoteoutbackcommunities.

See also:Optus fleet of satellites

With Aussat operating at a loss and with moves to deregulatetelecommunications in Australia,the government decided to sell Aussat, coupled with a telecommunications licence. The licence was sold to Optus Communications – a consortium including:[8]

The new telecommunications company was designed to provide competition to then government owned telecommunications companyTelecom Australia,now known asTelstra.

Founding of Optus (1991–present)

[edit]

Optus gained the second general carrier licence in January 1991.[10]

After privatisation, AUSSAT became Optus and its first offering to the general public was to offer long-distance calls at cheaper rates than that of its competitor Telstra. The long-distance calling rates on offer were initially available by consumers dialing1before the area code and phone number. Following this, a ballot process was conducted by then regulatorAUSTEL,with customers choosing their default long-distance carrier.[11]Customers who made no choice or did not respond to the mailout campaign automatically remained as a Telstra long-distance customer. Customers who remained with Telstra could dial the override code of1456before the area code and phone number to manually select Optus as the carrier for that single call. Since 1 July 1998, consumers have the choice of preselecting their preferred long-distance carrier or dialling the override code before dialling a telephone number.

The group began by building an interstatefibre opticcable and a series of exchanges between Optus' interstate network and Telstra's local network. It also laid fibre optics into major office buildings and industrial areas, and focused on high bandwidth local, (interstate) long distance, and interstate calls for business. In its early years, Optus was only able to offer local and long-distance calls to residential customers through Telstra's local phone network. Telstra would carry residential to residential calls to Optus' exchanges, and then the calls would be switched to Optus' long-distance fibre optic network.

In 2024, Singtel held advanced talks withBrookfieldto sell a 20% stake in Optus. Brookfield and Singtel were unable to agree on terms, with Singtel claiming afterwards it remained committed to Optus and the Australian market.[12]

Incidents

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2022 cyberattack

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Main article:2022 Optus data breach

Around 22 September 2022, Optus systems sustained a significant cyberattack that resulted in a major data breach of both current and former customers' personal information, including customers’ names, dates of birth, phone numbers and email addresses, with a smaller subset of customers having their street addresses, driving licence details and passport numbers leaked. Optus CEO Kelly Bayer Rosmarin urged customers to exercise "heightened awareness" regarding transactions with their Optus and other accounts. Rosmarin emphasised that passwords were not compromised.[13][14]The CEO said that the "worst-case scenario" regarding the number of customers whose data had been leaked was 9.8 million customers, but believes the actual number to be far lower.[15]

On 24 September 2022, Australian news outletsThe AgeandThe Sydney Morning Heraldreported that Optus was investigating the authenticity of a ransom demand of US$1 million made on a hacking forum. The demand gave Optus one week to pay the ransom in cryptocurrency else the data will be sold for US$300,000 to whoever else wants it.[16]

On 6 October, theAustralian Federal Policeannounced the arrest of a 19-year-old man who had allegedly threatened 93 Optus customers by saying that he would use their information leaked in the attack to commit financial crimes, unless they paid AUD $2,000.[17][18]

In response to the cyberattack, theAustralian federal governmentannounced emergency regulation on 6 October, in the form of a 12-month amendment to theTelecommunications Regulations 2021to "enable telecommunications companies to temporarily share approved government identifier information with regulated financial services entities."[19][20][21]

On 11 October, the Office of the Australian Information Commissioner launched an investigation, the aim of which is to explore the company's handling of customers' data.[22]

2023 nationwide outage

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Main article:2023 Optus outage

Early on 8 November 2023, an undetermined issue caused a nationwide outage in Optus Mobile and Fixed Internet services. The outage directly impacted more than 10 million customers, including government services, hospitals and businesses. Optus Mobile customers reported that their phones showed 'SOS' on the signal indicator, which is a sign the regular network is down, but mobile phones still have access to alternate networks in the event of an emergency call by using a so-called camping mechanism; however, Optus landlines were unable to make emergencytriple-zerocalls.[23][24]The outage affected the communication systems for Melbourne's train network, so for safety reasons the whole network was halted until backup communications commenced, leading to major delays and cancellations throughout the day.[25][26][27] [28]

Corporate affairs

[edit]
The former headquarters of Optus inNorth Sydney.
Former logos of Optus
Former Optus logo (1991–1999)
1991–1999
2005–2013

Chief Executive Officer

[edit]

Kelly Bayer Rosmarin commenced as CEO of Optus and Consumer Australia on 1 April 2020. She resigned on 20 November 2023.[29]

The hybrid fibre-coax rollout

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These practices meant that Optus was the largest customer of Telstra. To become competitive Optus would need to lay its own local phone network. To provide akiller applicationfor this, the Australian Federal government sold subscription television licences. Optus, as well as theSeven Network,businessmanKerry Stokesand American cable company Cablevision, formed theOptus Visionconsortium.News Corporationand Telstra created the rivalFoxtelconsortium.

Telstra's local phone network did not have the capability to deliver Foxtel pay television to consumers in the early 1990s, so Telstra identified a need to create a broadband network to support this new product.

AsTelstraand Optus could not agree on terms for a joint broadband cable roll out, they laid two competing cable networks, in addition to Telstra's existing copper network, at a combined cost estimated of over A$6bn.

Whilst Telstra focused on creating a broadband network specifically for broadcast, Optus designed their cable network to provide telephony services in addition to broadcast television.

Optus is no longer a customer of Telstra's after deciding to move the funding used to leaseTelstra's copper network into constructing theirhybrid fibre-coaxialnetwork, the first in Australia.

Takeovers

[edit]

Cable & Wirelesswith 24.5% stakeholder bought outBellSouth's equal 24.5% shareholding in July 1997.[30]The company returned to profitability in 1998 and changed its name to Cable & Wireless Optus.[31]Government relaxation of foreign ownership restrictions paved the way for the company to be floated - with Cable and Wireless increasing its holding to 52.5%)[32][33]- and listed on theAustralian Securities Exchangeon 17 November 1998.[34]

During 2001,Singtellaunched a takeover bid for Cable and Wireless Optus[35]which was ultimately successful[36]and the company became known as Singtel Optus.

In May 2004, Optus announced a $226.8 million bid for UEComm.[37]The takeover was approved in July[38]and completed in August.[39]

In July 2005, Optus announced it would acquire Alphawest Ltd. for A$25.9 million.[40]The buyout was completed in November 2005 and Alphawest is now an operating division of Optus Business.

On 12 January 2006, Optus acquired the remaining 74.15% of Virgin Mobile Australia for U$22.6 m, giving it 100% ownership.

OptusNet

[edit]
OptusNet logo

Optus Communications offered its first business-focused internet products in 1998 under the OptusNet product family, offering in-house developed dial-up and high-speed services. Optus purchased one of Australia's pioneer ISPs, Microplex, in 1998 to provide consumer dial-up internet services.[41][42]Separate to this, under the Optus Vision brand, acable broadbandarm began as a joint venture with U.S. cable and content providerExcite@Homeand was known as Optus@Home from its introduction in 1999[43]until it was renamed in 2002.[44]ADSLservices were offered from February 2004.[45]ADSL2+services were provided from December 2005.[46]

OPEL Networks

[edit]
Main article:OPEL Networks

In June 2007, joint venture subsidiaryOPEL Networkswas awarded government funding towards the cost of building a regional broadband network. Optus was to be contracted to build the network on behalf of OPEL.[47][48]

In April 2008, after a change of the Federal Government from theLiberal Party of Australiacoalition to theAustralian Labor Party,the new government terminated the funding agreement and the project was halted, with its functions to be replaced by theNational Broadband Network.

Terria

[edit]
Main article:Terria (consortium)

Optus is part of a consortium – now known asTerria– that in July 2006 announced their intention to make a combined bid to build the proposedNational Broadband Network.[49]

Products and services

[edit]
Optus Store atMidland Gate.

Optus' Customer Solutions and Services (CS&S) organisation is responsible for providing support to Optus Business customers. CS&S works with Optus' subsidiaryAlphawestto supportinformation technologyservices across Optus' large business, corporate and government[50]client base.

Retail services are sold to customers via phone, internet or through retail outlets, especiallyfranchisechainssuch as Optus World, Network Communications,Strathfield,TeleChoice,andAllphones.

Key Optus products and services include:

Voice

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Wireless

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  • 3G/HSPAprovided on 2100 MHz for large regional centres and metropolitan and 900 MHz for regional as well as metropolitan coverage. The dual frequencies covers 98% of the population.[52]
  • 4G/LTEprovided on 700 / 1800 / 2100 / 2300 / 2600 MHz covering 96.6% of the population.
  • 5Gprovided on 2300 MHz and 3500 MHz.
  • Satellite telephonycovering all of Australia.

Internet access

[edit]

Television

[edit]

Subsidiaries

[edit]

A number of notable wholly owned subsidiaries operate as part of the Singtel Optus group. These are:

Until 20 January 2013, Optus sold mobile services under the brand nameBoost Mobile.[53]

Optus also has a 50% stake in the now defunctOPEL Networks.[47]

Other wholly owned subsidiaries of note no longer have a significant active role as individual entities. These are as follows:

Reef Networks was formed in 1999 to provide anoptical fibrelink betweenBrisbaneandCairnsinQueensland.Optus gained exclusive access to this link in 2001, ahead of acquiring the organisation in 2005.[54]

XYZed was established by Optus in 2000 to provide wholesale business-gradeDSLservices under an individual brand, but today provides a collection of products only as part of the Optus Wholesale & Satellite division. XYZed established a network ofDSLAMsinsideTelstratelephone exchanges, utilisingUnconditioned Local Loopservices to reach end users.[55]

Infrastructure

[edit]

Optus' fully owned network infrastructure consists of the following:[56][57]

Network backbone

[edit]

Customer access network

[edit]
See also:Access network

OptusNet also providesCableinternet. In August 2010, OptusNet released an upgrade of its HFC network to theDOCSIS3.0 standard,[58]which enabled customers to access a maximum theoretical downstream bandwidth of 100Megabits.OptusNet is also one of the few ISPs in Australia to currently provideADSL2+via its ownDSLAMs,which it also resells to other ISPs.[59]

Mobile network

[edit]

Mobile network equipment is from Nortel, Nokia and Huawei and antennas are sourced from Andrews, RFS, Argus and Kathrein.[citation needed]

The Optus network operates on the following bandwidth frequencies across Australia:

  • 3GUMTS900/2100 MHz
  • 4GLTE700 / 900 / 1800 / 2100 / 2300 / 2600 MHz network which has been in progressive rollout since 2012.[60][61]VoLTEis currently being rolled out across Australia. For now,VoLTEis only available in CBD and metro areas inSydney,Melbourne,Adelaide, Brisbane, Perth and Canberra on selected devices purchased on postpaid contracts. Until VoLTE has been fully rolled out, voice calling is still reliant on the 3G network (and formerly the 2G network until it was terminated).[62]
  • 5GNR3500 MHz rollout started in October 2019

The2GGSM900/1800 MHz network was terminated on 3 April 2017 inWestern AustraliaandNorthern Territory.[63]2G GSMwas completely terminated on 1 August 2017 when 2G was disconnected inVictoria,New South Wales,Australian Capital Territory,Queensland,TasmaniaandSouth Australia.To remain connected, a device that is capable of running 3G at 900 MHz is now required after 2G was completely disconnected across Australia.

Partly owned infrastructure

[edit]

Part-owned network infrastructure includes:

Advertising and sponsorship

[edit]
Optus hasnaming rightstoPerth Stadiumwhere it is known as Optus Stadium.

Between 1994 and 2005 Optus had the naming rights to the Carlton football clubs original home ground in Princes Park. It was called Optus Oval until the ground was retired by the AFL in 2005.

Optus was the main sponsor of the1997 ARL season.[citation needed]

In 2016, Optus signed a 10-year partnership agreement with theAustralian Olympic Committeeto be the official partner of the Australian Olympic Team and the Australian Paralympic Team until 2026.[66]

In 2017, Optus won naming rights toPerth Stadiumwhere it would be known as Optus Stadium. Optus and theGovernment of Western Australiaagreed to a 10-year naming right worth approximately A$50 million.[67]

Optus also has a long-term partnership with theAdelaide Crowsin theAFL.Optus has been a partner of theCollingwood Magpiesin theAFL Women'ssince 2018.[68]

Optus is the current major sponsor for the No. 25Walkinshaw Andretti UnitedHolden ZB Commodoredriven byChaz Mostert[69]

Outsourcing

[edit]

Since 2005, Optus hasoutsourcedsomecustomer servicefunctions toConcentrixand 247.ai, with the outsourcer providing 800 staff operatingoffshoreinIndia,supplementing Optus' 3,000-plus onshorecall centrestaff.[70]Some functions have also been supplemented in thePhilippines.[71]Optus also uses 24/7 Inc. for telephone & chat based offshore support.

In October 2006, Optus announced that it would outsource 100 contracting jobs to anotherSingtelsubsidiary, IT companyNCS,in Singapore.[72]

Achievement and Rewards

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Rewards
2014 Canstar Blue Awards:Most Satisfied Customers 2014 Award in the small business mobile phone service providers category.
2015 Canstar Blue Awards: Most Satisfied Customers 2015 Award in the small business mobile phone service providers category.
2016 Global Carrier Award:Best Asian Wholesale Carrier Award
2017 Arcstar Carrier Forum:Operations and Maintenance Award

Global Telcom Awards:AI Initiative of the year

2018 World Communication Awards:Best Wholesale Operator

Asia Communications Awards:Wholesale Operator of the Year

Annual MVNOs World Congress:Most Innovative Wholesaler & People's Choice

See also

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References

[edit]
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  2. ^Swan, David; Keoghan, Sarah; Ireland, Olivia (8 November 2023)."'Today was a bad day': Optus CEO apologises for mass outage ".The Sydney Morning Herald.Nine Entertainment.Archivedfrom the original on 9 November 2023.Optus is owned by Singaporean parent company Singtel, whose executive board has been visiting Australia this week. Shares in Singtel fell by nearly 5 per cent on the Singapore Exchange on Wednesday.
  3. ^Swan, David (21 November 2023)."Optus' year from hell raises questions for parent company Singtel".The Sydney Morning Herald.Nine Entertainment.Archivedfrom the original on 23 November 2023.Optus is fully owned by Singtel, which itself is majority owned by Temasek Holdings, the investment arm of the Singapore government, which owns 55 per cent of the company's issued share capital.
  4. ^Beckham, Jeff (26 December 2023)."65+ Inspiring Singtel Statistics and Facts in 2023".The Tech Report.Archivedfrom the original on 26 December 2023.Optus, the second-largest telecommunications company in Australia, is 100% owned by Singtel. This acquisition has contributed substantially to Singtel's international presence.
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