Second Top Optus Executive Resigns Amid Network Turmoil

Lambo Kanagaratnam, a top executive, has tendered his resignation following a series of network outages and security breaches.

An Optus service message is displayed on a phone outside an Optus store in Sydney, Australia, on Oct. 5, 2022. Brendon Thorne/Getty Images

Another top Optus executive, Lambo Kanagaratnam, has resigned following widespread network outages and security breaches.

Optus CFO Michael Venter told The Epoch Times that the telco giant’s managing director of networks had “made the decision that the time is right for him to leave Optus,” following a nine-year tenure.

His resignation comes just four months after the telco giant’s major outage which disrupted internet and phone services, preventing millions of Australians, 400,000 businesses, and emergency services from making calls or processing card payments.

He is the second executive to resign after former Optus CEO Kelly Bayer Rosmarin stepped down last November, nearly two weeks after the 14-hour nationwide outage.

“Lambo joined Optus in 2015 after an international career bringing a wealth of experience from working internationally in a number of countries around the world,” Mr. Venter said.

“Under his leadership, the Optus Network has been Australia’s fastest 5G network for over 3 years and now has over 4,000 5G sites live across Australia.”

Mr. Kanagaratnam guided the telco’s teams through major natural disasters such as cyclones, floods, and fires, as well as navigating COVID-19 challenges and the recent outage.

Recent destructive storms hit Victoria in February, causing blackouts and widespread damage that affected 88 Optus towers.

Amid these challenges, Optus was already under scrutiny for a cyber attack on the company in 2022 that compromised the personal ID numbers of over 2 million of its customers.

Mr. Kanagaratnam spoke at a Senate inquiry after the attack, saying the telco was “pretty confident” they could rule out a cyber attack on the day of the outage.

He mentioned that telcos face “millions of cyber attacks yearly” and they are “an ongoing threat issue that we have to deal with all the time.”

Meanwhile, Optus’s Chief Technology Officer Jorge Fernandes will temporarily assume Mr. Kanagaratnam’s role until a replacement is found.

Mr. Jorge, who started at Optus on June 1, 2023, will be in Australia with the team starting mid-March to ensure a smooth transition.

He has a 25-year career, including 15 years at Vodafone, where he held several key roles, including chief technology officer at Vodafone UK.

Optus Fined $1.5 Million Amid Kanagaratnam’s Resignation

Mr Kanagaratnam’s resignation coincides with Optus landing in hot water yet again, this time receiving a $1.5 million fine from the communications watchdog for breaking public safety regulations.

The Australian Communications and Media Authority (ACMA) found that Optus failed to upload the details of 200,000 mobile customers to the Integrated Public Number Database between January 2021 and September 2023,

The database is crucial for providing information to emergency services during triple zero calls and issuing emergency alerts during disasters like bushfires.

ACMA member Samantha Yorke was alarmed that Optus had kept so many customers in this position for an extended period.

“Optus cannot outsource its obligations, even if part of the process is being undertaken by a third party,” she said in a statement.

“All telcos need to have systems in place that ensure they are meeting their obligations, including having robust oversight and assurance processes for third-party suppliers.”

The new Optus management faces a court-ordered review of its compliance, and may face an additional fine of up to $10 million if it fails to meet the requirements.