The Sydney-based company said in a statement it needed additional capacity and access to more satellites. It said it was seeking a partner "because it wishes to remain internationally competitive over the longer term, both domestically and in the Asia Pacific region".
Optus owns five satellites, including a yet-to-be launched C1 satellite co-owned by the Australian Defence Force. The satellite division is valued at about A$1 billion, according to a report in the Australian newspaper, without citing sources.
Merrill Lynch is helping Optus find a partner, with potential buyers including The Hague-based New Skies Satellites NV; Greenwich, US-based PanAmSat Corp, which is owned by General Motors Corp; and Hong-Kong-based Asia Satellite Telecommunications Holdings Ltd, said the newspaper.
Optus didn't say when the sale or agreement with a new partner would be completed.
London-based Cable & Wireless Plc owns 53 percent of Optus. On September 15, Cable & Wireless said it would consider selling parts of Optus, setting up a potential bidding war for the assets.
Graham Wallace, chief executive of Cable & Wireless Plc, then told Bloomberg News that Optus's multimedia and wireless units were "probably more valuable to someone else" and the "logic is pretty overwhelming" to sell them.
Still, for months, C&W Optus has denied it will sell its mobile business, which accounts for most of the value in the company's A$16 billion (US$8.7 billion) market capitalization.
Optus shares rose 6 cents to A$3.81.
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