Kelly Bayer Rosmarin, the Chief Executive Officer of Optus, one of the biggest telecommunications companies in Australia, has resigned in the aftermath of a critical network outage that left Australians without internet and mobile access for 14 hours.
Bayer Rosmarin, who joined Optus in March 2019 from a banking background, initially served as Deputy CEO before assuming the top position in April 2020.
Optus, a subsidiary of Singtel, is renowned for its commitment to innovation and customer-centric services, solidifying its position as one of the leading and preferred network providers. Optus offers a diverse range of services, encompassing mobile, broadband, and entertainment solutions, catering to the diverse needs of its clientele.
Following the network outage on November 8th, Bayer Rosmarin appeared before an Australian senate inquiry to disclose the root cause. According to her, the disruption resulted from changes to routing information supplied by an international peering network. These changes propagated through Optus’ network, triggering safety thresholds on key routers, leading to disconnection from the Optus IP Core network.
Optus clarified that the peering network in question was Singtel’s Internet Exchange (STiX). The resolution required physical reconnection or rebooting of routers across multiple sites in Australia, contributing to the prolonged duration of the issue. However, Singtel denied responsibility, “The STiX upgrade was completed within 20 minutes, and all its customers’ routers that were connected to it, including Optus’s, were up and running,” said Singtel.
Bayer Rosmarin’s lack of telecommunications experience may have been a reason for her firing, hinted Optus Chairman Paul O’Sullivan, who said in an interview “My advice would be to look externally as well as internally and look for the best possible experience.” “I do think telco experience is very helpful in running a big telco”, he affirmed.
Dr. Mariano Heyden, Professor of Strategy and International Business at Monash, viewed the CEO’s dismissal as symbolic scapegoating in response to public and policy pressures. In a statement, he remarked, “CEO turnover is an opportunity for the organization’s board to take accountability for misfortunes and create a context for thinking about authentic change.”
