When Stephen Rue was appointed as the chief executive of Optus in November last year, his primary mission was clear: restore the Australian public’s trust in the nation’s second-largest telecommunications company. This task was not without its challenges, as Optus had been embroiled in a series of public relations crises, including a significant cyberattack in 2022 and a major network outage the following year. The pressure from both local stakeholders and Optus’ Singaporean parent company, Singtel, led to the resignation of Rue’s predecessor, Kelly Bayer Rosmarin.
Stephen Rue, with his extensive experience at the National Broadband Network (NBN), was seen as the ideal candidate to lead Optus out of its predicament. Rue had spent a decade at NBN, with six years as its chief executive, overseeing the initial rollout of the network. His tenure at NBN culminated in him being the highest-paid public servant in Australia, earning a package of $3 million in his final year.
Challenges and Controversies
Rue’s appointment came at a time when Optus was facing significant legal challenges. Just a month before he took the helm, the Australian Competition and Consumer Commission (ACCC) took Optus to court over allegations of exploiting some of the nation’s most disadvantaged individuals. The situation escalated with a network outage in 2023 that left over 2000 Australians unable to make emergency Triple Zero calls, resulting in tragic fatalities.
Communications Minister Anika Wells criticized Optus’ handling of the incident, stating that the company’s delayed response had let Australians down. Rue, addressing the incident, explained that the outage was due to a routine firewall upgrade and promised an independent investigation. He emphasized that the company had delayed informing the public until comprehensive welfare checks were completed.
Leadership Style and Corporate Experience
Unlike his predecessor, Rue is known for his transparent communication style and willingness to acknowledge faults. Born in Dublin, Rue moved to Australia in the early 1990s and trained as an accountant. He joined News Corp, where he spent 17 years, including a decade as the chief financial officer in Australia. His corporate experience was further enriched through board appointments, such as his role with the Melbourne Storm during a significant crisis.
At the Melbourne Storm, Rue was instrumental in stabilizing the club’s finances and reputation following a salary cap scandal. His leadership during this period was crucial in transitioning the club to new ownership in 2013.
Strategic Vision for Optus
For a company like Optus, preparedness for crises is critical, as the services they provide are essential to public safety. Rue’s experience at NBN during the early days of the COVID-19 pandemic showcased his ability to lead through uncertainty. Under his leadership, the NBN team prepared for various scenarios, ensuring the network could support millions of Australians working from home.
Then-communications minister Paul Fletcher praised Rue’s “calm and capable” leadership, which was pivotal in managing the surge in demand for high-speed internet during the pandemic.
Rue’s strategic approach at Optus involves not only crisis management but also regaining market share from Telstra, the industry leader. His focus on transparency and accountability is aimed at rebuilding trust with consumers and stakeholders alike.
Looking Ahead
As Rue continues to navigate Optus through its current challenges, the company’s future will depend heavily on his ability to implement effective changes and restore confidence in its services. The independent investigation into the recent outage will be a critical step in understanding and addressing the underlying issues.
Meanwhile, Rue’s leadership style, characterized by openness and a proactive approach to problem-solving, may well be the key to Optus’ recovery and growth in the competitive telecommunications market. As the company looks to the future, Rue’s experience and strategic vision will be instrumental in shaping its path forward.
