Rue will assume the role in November 2024, one year after previous CEO Kelly Bayer Rosmarin resigned over a national network outage.
Back then, Capacity reported that Optus Chairman Paul O’Sullivan urged Singtel, Optus’ parent company, to find a new CEO with telco experience.
“My advice would be to look externally as well as internally and look for the best possible experience,” O’Sullivan said in an interview with national press. “I do think telco experience is very helpful in running a big telco.”
Rue certainly has that.
He joined the NBN in 2014 as CFO and took the top job in 2018. NBN is Australia’s national wholesale open-access data network, tasked with upgrading Australia’s internet and voice networks.
In his decade at NBN, Rue led the nation’s broadband rollout to completion, connecting over 8 million Australian homes and businesses with fast and secure broadband access.
NBN’s chief financial officer Philip Knox will become interim CEO until a replacement for Rue is found.
“We expect Rue’s operational and financial background to lift service standards significantly for the benefit of our customers,” O’Sullivan said of the appointment.
In addition to the announcement, Singtel announced a new governance model for Optus, that it says is in line with its mission to adopt a decentralised operating company-driven structure.
Moving forward, the Optus CEO and executives will report to the Optus Board, which Rue will join alongside Singtel CEO Yuen Kuan Moon and current interim CEO Michael Venter.
Venter will stay in his role as interim CEO until November.
Optus has suffered a reputational crisis in the past two years. The aforementioned network outage that left millions without access to the internet and even emergency services was preceded by a serious cyber breach that affected 10 million customers in 2022.
Under the new governance model, The Board and executives will work together to reset strategy and rebuild customer trust in the Optus brand.
“Optus has been part of the Singtel stable for two decades and remains a strategic long-term commitment,” Moon said.
“We are extremely excited to have Stephen, with his deep understanding of the industry and strong operational experience to take Optus forward,” he continued.
Moon said that due to the uncertainty in the economic environment, businesses need greater independence and agility to navigate their markets.
“We believe the new governance model will set the Optus management up for success and help Optus restore and cement its position as a leading player in the Australian telecommunications market,” he added.
