Latest Optus outage less severe than before, but could affect Singtel’s minority stake sale: Analysts
Optus’ continued drag on its stock and business could affect its effectiveness in selling its stake
The latest Optus telecommunications outage was less severe than previous disruptions, but it has raised concerns about Singtel's ability to sell its minority stake in the Australian telco. The 76-minute outage on September 11 affected voice calling services for some customers in Victoria, South Australia, Tasmania, and the Northern Territory, resulting in intermittent call dropouts.
While not as severe as a 13-hour outage in 2025, it still impacted some emergency service calls. Singtel has invested heavily in Optus' networks, with A$1.5 billion planned for the 2026 financial year. Analysts believe the recent outage may not significantly impact Singtel's share price, but it could hinder its efforts to sell its stake in Optus.
Optus has invested A$1.5 billion in its networks and IT systems for the 2026 financial year, with CEO Stephen Rue emphasizing the need for improved network resilience. Critics argue that repeated outages highlight the need for more capital expenditure, potentially affecting Singtel's near-term margins. Both Vodafone and Telstra have also faced service disruptions this year, making Optus' issues not unique.
A partner with local expertise could strengthen Optus' operations and help Singtel politically by demonstrating local ownership of critical infrastructure. However, a lower sale price is likely if the potential buyer views the Optus network as under-invested.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
