Can Optus CEO Stephen Rue Survive the 000 Outage Crisis?

Australia’s second-largest telecommunications company, Optus, is facing one of the biggest crises in its history. Millions of Australians were left without access to emergency services after a massive outage crippled the nation’s “000” line — a number that connects people to police, ambulance, and fire services in life-or-death situations.

The outage, which occurred in September 2025, lasted several hours and is being linked to at least four deaths. For a country where reliability in communication can mean survival during bushfires, floods, or health emergencies, the event has shaken national confidence in one of Australia’s most important utilities.

Appearing before a Senate committee, Optus CEO Stephen Rue issued a public apology but refused to step down. “Another change of leader at this time is not what Optus needs or what our customers need,” Rue said firmly. His refusal to resign has sparked heated debate, with some lawmakers accusing him of clinging to power, while others argue that leadership stability is necessary to restore order.

The crisis has reignited old wounds for Optus — a company already struggling to recover from previous data breaches and network failures that eroded customer trust.

What Caused the Outage? A “Routine” Upgrade Gone Wrong

Optus executives said the catastrophic failure was triggered by what should have been a routine firewall software upgrade. The update locked essential network equipment before backup systems could take over, effectively blocking emergency calls across parts of the country.

The fallout was immediate and severe. Police dispatch systems and hospitals reported difficulties reaching emergency responders. Rural areas often more dependent on mobile networks were hit hardest. The “000” network failure not only stranded those in crisis but also exposed how deeply interconnected modern life has become with digital infrastructure.

This isn’t the first time Optus has faced widespread disruption. In November 2023, a separate network outage caused millions of customers to lose mobile and internet access nationwide for up to 14 hours. That event disrupted hospitals, public transport, and businesses. A year earlier, in 2022, the company suffered a massive cyberattack that exposed sensitive data of nearly 10 million Australians, including passport numbers and medical information.

The latest outage reinforces a troubling pattern. Analysts say the issue points to deeper weaknesses in Optus’s risk management, infrastructure redundancy, and overall crisis preparedness.

Stephen Rue: The CEO in the Crosshairs

Stephen Rue stepped into the top job at Optus in late 2023, succeeding former CEO Kelly Bayer Rosmarin, who resigned after the previous network meltdown. Rue, formerly the CEO of NBN Co the company responsible for rolling out Australia’s national broadband network came to Optus with a reputation for calm leadership and financial discipline.

But his tenure has been anything but calm. Within months, Optus faced renewed pressure from regulators, consumer advocates, and the public demanding that the company prove its reliability. Now, with the emergency line failure, Rue’s leadership is under a magnifying glass.

When questioned by senators about whether he should resign, Rue remained defiant. “I’m deeply sorry for the outage and the distress it caused, but I believe my responsibility is to fix what went wrong not to walk away,” he said during the hearing.

Communications Minister Michelle Rowland was less forgiving, saying in a public statement, “Australians have a right to expect their emergency services will always work. Anything less is unacceptable.” Her words reflect growing frustration with not only Optus but also the broader telecom industry’s accountability standards.

For Rue, the challenge is no longer just technical. It’s now about leadership credibility — whether he can convince a skeptical public and a restless board that he is the right person to steer Optus through its worst reputational storm in decades.

Inside Optus: A Company Struggling to Rebuild Trust

Founded in 1992, Optus began as a bold challenger to Telstra, Australia’s former state-owned telecom monopoly. Over the years, Optus grew into the country’s second-largest telecommunications provider, with more than 10 million mobile and broadband customers and over 6,000 employees.

The company’s parent, Singapore Telecommunications (Singtel), has long marketed Optus as a modern, technology-driven competitor focused on customer service and innovation. However, its recent history has been dominated by crisis management rather than innovation.

Since 2022, Optus has faced multiple high-profile failures — from data leaks to system outages — that have repeatedly tested consumer loyalty. In response, Rue has promised to “rebuild from the inside out,” committing to massive upgrades in infrastructure resilience, cybersecurity, and customer support systems.

But insiders say that Optus’s problems go deeper than technology. Internal sources have pointed to outdated network designs, slow decision-making, and fragmented communication between leadership teams. The upcoming departures of the company’s Chief Financial Officer and Chief Information Officer, announced shortly after the outage, have been seen as part of a broader attempt to reset Optus’s management culture.

Public Outrage and Political Backlash

Public anger over the outage has been fierce and emotional. On social media, hashtags such as #OptusFail and #RueResign trended for days. Many Australians shared stories of being unable to reach emergency services, describing terrifying moments of helplessness.

Consumer advocacy groups are demanding a full independent investigation. They argue that telecom companies should face stricter oversight when their failures put lives at risk.

Prime Minister Anthony Albanese called the situation “deeply concerning” and said the government would consider tighter regulations to ensure redundancy in the nation’s communication infrastructure. Opposition lawmakers went further, calling for Optus to be fined and potentially stripped of certain government service contracts.

According to analysis reviewed by CEO Today, Optus could face legal claims worth tens of millions of dollars, regulatory penalties, and long-term erosion of customer confidence if it fails to deliver a convincing recovery plan.

The Human Cost: When Technology Fails, Lives Are Lost

Behind the statistics and boardroom debates are real people. At least four deaths are under investigation for possible links to the outage. One case involved a man in cardiac arrest whose family was unable to connect to an ambulance.

These tragedies have humanized what could otherwise have been dismissed as a technical glitch. They’ve become the emotional core of a national conversation about corporate responsibility, technological dependence, and how Australia safeguards critical public infrastructure.

Optus has pledged to fully cooperate with ongoing investigations led by the Australian Communications and Media Authority (ACMA) and the Department of Communications. Rue has said he plans to personally meet the affected families and release a comprehensive “Root Cause and Recovery Report” by the end of the year.

But for many Australians, the damage to trust may take years to repair.

What’s Next for Optus and Its CEO

In the coming months, all eyes will be on how Optus responds. Rue has outlined a series of measures to rebuild the network’s integrity, including a major investment in backup systems, emergency routing redundancies, and closer coordination with federal emergency services.

He has also promised greater transparency, pledging that customers will receive real-time updates in the event of future disruptions. Optus plans to overhaul its crisis communication protocols, acknowledging that one of the company’s biggest failures was not technical, but informational.

For Rue personally, the next six to twelve months will determine his fate. If he can deliver tangible improvements and prevent further disruptions, he might survive this crisis. If not, pressure from regulators, shareholders, and the public could force his resignation.

The Bigger Picture: A Wake-Up Call for Telecommunications

The Optus outage is a warning for all telecom companies, not just in Australia but globally. In a world increasingly dependent on digital connectivity, any failure in communication networks can cascade into real-world emergencies.

Telstra, TPG, and Vodafone have all since issued statements reassuring customers about their own emergency service redundancies. Meanwhile, government officials are drafting new requirements that would force telecom providers to prove they can maintain service continuity during upgrades or outages.

As one senator put it during the hearings, “If Australians can’t call for help, then the system is broken — and it must be fixed, fast.”

This moment could mark a turning point not only for Optus but for the entire telecommunications sector, pushing companies to move from cost-cutting to resilience investment.

Conclusion: Can Stephen Rue Weather the Storm?

Optus stands at a critical juncture. The company that once prided itself on innovation and reliability now faces a fight for its reputation and future. Stephen Rue’s refusal to resign may be seen as a show of strength — or as a failure to accept accountability.

For millions of Australians, the question is no longer about who leads Optus, but whether they can trust the company to keep them safe when it matters most.

If Rue can guide Optus through this crisis with humility, transparency, and results, he might just turn this disaster into a defining moment of redemption. But if promises go unfulfilled, the public may deliver its own verdict — one that no CEO can withstand.