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CABLE & WIRELESS OPTUS

Index to Optus Articles

  • Overview
  • 2001 SingTel offer
  • Optus Financial Results

  • RSL COM History

  • SingTel
  • OPTUS PRE 2001

  • Management
  • Optus Shareholders
  • Optus Financial Results 2001
  • Optus History
  • Optus Vision
  • Optus Vision History
  • Optus Phone Network
  • Optus Phone Technical
  • Optus Satellites
  • Optus Vision First Plans
  • OPTUS OVERVIEW

    Optus was launched on 31 Jan 1992 as a second carrier in Aust. It paid $800m for the second licence and Aussat debt free. It has a mobile digital network, an optical fibre city ring and an interstate network. Optus began by reselling Telecom analogue mobile services. Optus then commenced with Mobiles (analogue and GSM) IDD and STD areas.

    Optus later undertook a major move into the Pay TV and Local Call market with the launch of Optus Vision. Vision would carry telephone and broadband services, in order to capture some basic access market. An Optus press release stated that it will offer local calls for 15 cents (Optus-Optus customer) and 20-22 cents for Optus to Telstra customers.

    Optus has not had stable management. Bell South first pulled out leaving C&W as majority owner. In 2001, SingTel made a successful offer.

    Below is a history of both companies.

    OPTUS - 2001 SINGTEL

    March 2001: COMPETITION TOO MUCH TO HANDLE
    Australia has "enjoyed" a competitive Pay TV system with two companies; Foxtel and Optus, building duplicate networks. Most large cities have two coaxial cables passing their homes. Now after about 5 years of competition, Foxtel will take over Optus programming. Foxtel's shareholders are Telstra (50%), News Ltd (25%) and Publishing & Broadcasting Ltd (25%). This will probably be welcomed by Australians as competition brought exclusive sport deals to each side, and poor exclusive programming arrangements, at a cost to support 2 networks, when only one was necessary.

    Nov 2001
    Optus has 3 divisions: Mobiles, Consumer and Multimedia (CMM), and Data and Business.

    Oct 2001 Optus rescues COMVergent by buying RSL COM, a reseller of Optus mobiles. RSL had 120,000 residential customers. US parent, RSL communications filed for bankruptcy in March. See RSL COM History.

    OPTUS FINANCIAL RESULTS

    Financial Year ends 31 March.

                    A$m
                    96-97   97-98   98-99   99-00   00-01
    Sales           $2510m  $2933m  $3405m  $4200m  $4900
    Oth Revenue     $  20m  $  13m  $  13m
    Depreciation    $ 330m  $ 446m  $ 521m
    EBIT            $ -81m  $ 182m  $     
    Net Interest    $-152m  $-223m  $-124m
    Profit pre Tax  $-233m  $ -41m  $               $ 371
    Abnormals       $-434m  $ -55m  $ -92m
    Tax             $   -       -       - 
    Net Profit      $-667m  $ -95m  $ 113m  $264m
    Payment to                            
     Other Carriers $       $ 904m  $      

    2001 SINGTEL OFFER

    26 March 2001: SingTel made an offer for the Cable & Wireless majority holding in Optus. Singtel has several options but is expected to pay about A$17bn. The offer represents a premium of 13%, at A$4.50 per share. They last traded at A$3.99. C&W Optus has 8,569 employees.


    RSL COM HISTORY

    RSL is a Bermudan company. RSL purchased the failed Pacific Star. MD Adrian Coote. In Apr 98 it claimed 100,000 mobile customers. It has also purchased some smaller niche players (call Australia First Direct and the customer base of Link Telecoms). History Note: Pacific Star: (owned Telstra NZ and Bell Atlantic 50:50) Clients WA and Qld Governments, Dalgety Westfarmers, Cadbury Schweppes, Defence. It was considered the second largest reseller. However its future is now uncertain, staff have been cut and some assets were sold. Call Australia: claims 11,000 customers

    Oct 2001

    Optus rescues COMVergent by buying RSL COM, a reseller of Optus mobiles. RSL had 120,000 residential customers. US parent, RSL communications filed for bankruptcy in March.

    Mar 2003

    RSL buys failed New Tel fixed line customers - about 50,000 fixed line.



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