Singtel flags Optus minority stake sale as telco faces pressure

Singtel has signalled it is open to selling a minority stake in Optus to a local partner, as the Australian telco tries to rebuild trust after its tragic triple-0 outage scandal while facing rising local costs.

In its full-year results on Thursday, the Singaporean telecommunications giant, which fully owns Optus, said it was “open to working with potential Australian partners” that aligned with its goal of ensuring Optus remained a “strong alternative operator” in the local market.

The group said it was considering a “like-minded long-term local partner” taking a “meaningful minority stake” in Optus, while stressing it remained committed to Australia for the long term.

Singtel described Optus as an “integral and strategic” part of the group for more than 25 years, while signalling it could bring in a local minority investor without giving up control of the Australian business.

It comes after a difficult period for Optus, which has been trying to repair its reputation after the September 18 outage that affected triple zero emergency services.

Two people died after being unable to contact emergency services.

Optus has accepted full accountability for what it called an “unacceptable failure”.

It has since expanded automated call testing and created dedicated team to constantly monitor triple zero calls.

The scandal followed a nationwide outage in 2023, when Optus breached the same rules. The Australian Communications and Media Authority later penalised the company $12 million.

The triple zero scandal heaped pressure on the telco after it was ordered in September 2025 to pay $100 million for “unconscionable conduct” when selling mobile phones and contracts to hundreds of Australians.

Despite the many challenges, Optus’ operating revenue rose 2.1 per cent to $8.34 billion for the year to March 31, driven by mobile growth and more prepaid customers through SIM-provider amaysim.

Optus also reported higher income following its regional network sharing arrangement with TPG Telecom.

“These results reflect a more disciplined business that’s putting the customer first in everything we do,” said Optus chief executive Stephen Rue after his first full financial year in the job.

“Over the past year, we have taken deliberate steps to strengthen our organisational and operational fundamentals and raise our standards across the business.”

Still, Singtel booked an “exceptional loss” related to Optus, from provisions for regulatory and remediation expenses as well as costs linked to the buyback of retail stores.

The pressure is not limited to the fallout from Optus’ recent scandals.

Australia’s major telcos are also facing a much larger bill for renting space on the spectrum, the radio waves used for mobile services. The ACMA has confirmed it will charge more than $7.3 billion for Optus, Telstra, TPG Telecom and NBN Co to renew key spectrum licences.

About 80 per cent of the spectrum used by 30 million mobile services is due for renewal between 2028 and 2032.

The decision, made on Wednesday, angered the industry. Optus and TPG have argued the pricing would place greater strain on their financial positions than on Telstra, potentially reducing consumer choice and service quality.

Singtel, which also operates telecommunications, IT services and digital infrastructure businesses across Singapore and the APAC region, fell 5.5 per cent on the Singapore Exchange after the results were published.

Its shares had risen 23 per cent since the start of the year.