Why is Singtel seeking an Aussie partner for Optus?

[SINGAPORE] Along with announcing its latest results on Thursday (May 21), Singtel said it is “open” to working with potential Australian partners on Optus, its wholly owned subsidiary.

The Business Times looks at why Singtel is considering bringing in a minority partner for Optus, which has been dogged by years of operational missteps, regulatory scrutiny and damaging outages.

Upping its game

Singtel said the quest for an Optus partner is part of its broader approach towards managing its portfolio of operating companies and associates, which involves “regularly evaluating opportunities to enhance group businesses and performance”.

It hopes to find a “like-minded long-term local partner” that would take a “meaningful minority stake” in Optus.

It added that such a partner could bring “complementary capabilities and expertise to improve service provision and quality” at Optus.

Group CEO Yuen Kuan Moon said that Australia remains an attractive market because it has only three mobile network operators, making it structurally sustainable if managed well.

However, he acknowledged that Optus “is not where it’s supposed to be today”.

Despite its challenges, Optus’ latest financial results show signs of operational stability.

For its second half ended Mar 31, operating revenue rose 2.4 per cent to A$4.3 billion (S$3.9 billion); its earnings before interest, taxes, depreciation and amortisation (Ebitda) grew 4.8 per cent to A$1.2 billion.

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Troubles Down Under

Singtel fully acquired Optus in 2001 for around S$11 billion. It is one of the group’s key overseas businesses, aside from regional associates and joint ventures such as Bharti Airtel in India, AIS in Thailand and Telkomsel in Indonesia.

But Optus’ string of crises in recent years that have dented its reputation and raised questions about its operational resilience.

Among the most significant incidents are the following:

February 2026: Optus was hit by an outage on Feb 9 that reportedly affected around 200,000 customers. The disruption, linked to a software issue, lasted several hours.

September 2025: A 13-hour network disruption affected about 600 users and disrupted emergency-call access; the outage was linked to at least two deaths in Australia. An independent review commissioned by Optus attributed the incident to a departure from standard processes during a network upgrade.

Australia’s Prime Minister Anthony Albanese, describing the outage as an “unacceptable failure”, said Optus had “let down the nation”.

Optus CEO Stephen Rue apologised for the incident, and Yuen said he was “deeply sorry” to learn of the disruption.

September 2025: Optus was fined A$100 million by Australia’s federal court for selling phones and contracts to disadvantaged consumers, including those with intellectual disabilities.

The company admitted to improperly selling products to more than 400 such customers in 16 stores between August 2019 and July 2023.

November 2023: A near 14-hour nationwide outage disrupted services for millions of customers and affected emergency-call access across Australia. The incident led to the resignation of then-chief executive Kelly Bayer Rosmarin. Australian regulators later fined Optus A$12 million.

September 2022: Optus suffered a major cyberattack affecting almost 10 million current and former customers. The breach exposed sensitive personal information, including their home addresses and passport details. In August 2025, the Australian authorities commenced legal proceedings against Optus over the alleged breaches.

How can a minority partner help?

Singtel’s move to consider selling part of its stake comes after an independent review into Optus following the outage in 2025.

Among the recommendations from the probe was for the board to ensure that the CEO and executive team at Optus are equipped to manage the company’s reform.

Singtel has also pledged full support for Optus in tackling its underlying problems, and said it was committed to the transformation of the unit. It previously disclosed that it has invested more than A$9 billion in Optus in the last five years.

Citi Research analysts Arthur Pineda and Luis Hilado believe the onboarding of a strategic partner for Optus could “raise further proceeds” if successful.

Meanwhile, Singtel has stressed that it remains “committed to Australia for the long term”, noting that Optus has been part of the group for more than 25 years.

Additional reporting by Benicia Tan