The telco is blaming private and public sector spending cuts and cost-of-living pressures.
Optus one of Australia's largest telecommunications companies has had a major Wi-Fi and broadband outage across large parts of the country, affecting millions of people.
The Commerce Commission's independent research was prompted by ongoing, high levels of complaints about customer service.
Cyclone Gabrielle left many communities either without essential communications or with tenuous remaining links.
It would also provide mobile wireless coverage to further rural black spot areas.
"We're currently exploring what a modern phone booth might look like."
If it goes ahead, the new company would be the third-largest in the country.
