Optus has issued an apology following a second service outage in less than two weeks, this time impacting a mobile tower in Dapto, New South Wales. The fault affected approximately 4,500 customers, disrupting at least 12 emergency triple-0 calls between 3 am and 12:20 pm yesterday. One caller attempting to reach emergency services was unable to connect, though it has since been confirmed that they are safe. Optus has pledged to collaborate with authorities to conduct welfare checks as necessary.
Meanwhile, in a move that has raised eyebrows, Singtel, the parent company of Optus, awarded a significant employee bonus precisely one week after an earlier Optus network outage was linked to three deaths in Australia. The bonus was disclosed in a filing to the Singapore Stock Exchange (SGX) under the title “Grant of Share Awards Under the Singtel Performance Shares Plan 2012”.
Details of the Bonus Award
Singtel’s filing revealed that awards covering 32,198 ordinary shares in Singapore Telecommunications Limited were granted under the Singtel Performance Share Plan 2012. This announcement was made public on the SGX website at 6:58 pm local time. The shares were valued at S$4.26 each, totaling a remuneration of S$137,163. The identity of the employee receiving the bonus was not disclosed, but the filing was categorized under “Employee Stock Option/Share Scheme”.
These share schemes are designed to incentivize employees to meet performance targets. According to the filing, “Options may be granted only to employees of SES and/or its subsidiaries (‘Employees’) or non-employee directors of SES and/or its subsidiaries (‘Non-Employee Directors’)”. SES refers to Singtel Enterprise Security, which provides cybersecurity services to businesses.
Industry Reactions and Criticism
The timing of the bonus has drawn criticism from industry experts. Optus is wholly owned by Singapore Telecommunications, or Singtel, which is itself majority-owned by Temasek, a sovereign wealth fund of the Singapore government. The close operational relationship between Optus and its Singapore parent was underscored when Singtel CEO Yuen Kuan Moon issued an apology following the September 18 network outage linked to three deaths.
Independent telecommunications consultant Paul Budde remarked on the timing, stating,
“Nobody bothered to put a hold on this [employee award]. Again, very poor internal communications/management.”
University of Technology, Sydney, corporate governance expert Thomas Clarke added,
“[It was] another indication of how share bonuses (and governance mechanisms generally) are oblivious to service delivery.”
Upcoming Meeting with Australian Authorities
This controversy unfolds as Singtel and Optus prepare for a meeting with Communications Minister Anika Wells. The meeting, initially scheduled for Monday, has been postponed to Tuesday. Singtel CEO Yuen Kuan Moon, Optus CEO Stephen Rue, and Optus board chairman John Arthur are expected to attend.
A Singtel spokesperson confirmed,
“Singtel Group CEO Yuen Kuan Moon will be in Sydney for a meeting as a member of the Optus board as it supports management through the triple-0 incident. He is scheduled to meet Communications Minister Anika Wells together with Optus board chairman John Arthur and Optus CEO Stephen Rue.”
The meeting follows a technical failure on September 18 that disrupted hundreds of triple-0 calls on the Optus network, resulting in three deaths. The failure affected customers in South Australia, the Northern Territory, and Western Australia. Optus CEO Stephen Rue acknowledged the technical failure, which impacted 480 customers, and stated that Singtel is committed to cooperating fully with the Australian government and authorities to resolve the issue.
As the situation develops, both Optus and Singtel face increased scrutiny from regulators and the public, with the upcoming meeting expected to address these pressing concerns.
