Australia-based mobile operator Optus announced it will cut 400 jobs in the next few months as it faces increased competition amid a move by rivals to introduce unlimited 4G data plans.

Optus CEO Allen Lew told staff the cuts are being made to future-proof the company and fund future investments as it goes through a “step change”, The Sydney Morning Herald reported.


The operator, the second largest mobile player in the country with a 31 per cent market share by subscribers, last week said it would close subsidiary Virgin Mobile, which will result in 200 job losses and the closing of 36 stores.

In early May market leader Telstra and third-ranked Vodafone Australia both unveiled unlimited mobile data plans designed to end excess data charges.

Telstra issued a margin warning two weeks ago, with CEO Andrew Penn saying the industry is facing increased competition which has put pressure on fixed and mobile margins.

The three largest operators are also facing pressure from MVNOs, which accounted for around 45 per cent of all new mobile connections in the first six months of 2017, research company Telsyte revealed.

Growth in FY17
Optus, owned by Singapore-based Singtel, reported strong results for its fiscal year ending 31 March, with net profit rising 2.8 per cent year-on-year to AUD817 million ($618 million) and operating revenue increasing 3.4 per cent to AUD8.7 billion.

Its mobile subscriber base grew 3.9 per cent over the fiscal year to end March at 10.1 million. Blended ARPU fell 1.9 per cent to AUD33, which the company said was a result of an increased mix of SIM-only plans, higher device repayment credits and data price competition.

Mobile revenue in fiscal Q4 inched up 0.8 per cent to AUD927 million.

In January it signed a five-year network management contract with Nokia. The outsourcing deal, first announced in October 2017, is expected to result in about 170 job losses.