Telstra outlines organisational shake up

Australian incumbent carrier Telstra on Monday announced an organisational overhaul that will see the company divided into four main groups as well as a reshuffling of the top brass.

Telstra CEO David Thodey said the shake up would help the company better compete in fixed and mobile markets as well as boost its presence overseas.

Two new product units will be created with the wireless data and apps division to be headed by Philip Jones and the fixed broadband unit to be led by Justin Milne. Tarek Robbiati meanwhile will take charge of an international unit, including Telstra’s businesses in China, international sales and business development and Robert Nason has been appointed as head of customer satisfaction, simplification and productivity, responsible for improving customer service. Network, technology and IT functions will also be consolidated under the leadership of Michael Rocca, acting chief operations officer.

“Asia is a very important market for Telstra and the creation of this new unit enables us to take a co-ordinated approach to our performance in one of the world’s fast-growing markets,” Thodey said.

Telstra also announced that Holly Kramer, group managing director of Telstra product management, has left Telstra the company.

In September Telstra butted up against the national government as the minister for communications, Stephen Conroy, called for the carrier to be broken up.

Conroy announced fundamental reforms to existing telecommunications regulations that would prevent Telstra from acquiring additional spectrum for advanced wireless broadband, unless it agrees to a functional separation plan.

The proposed break up, which is similar to that undergone by BT in the UK, would seek to end Telstra’s dominance in the sector and would see the firm conduct its network operations and wholesale functions at arm’s length from the company; provide equivalent price terms to its own retail business and non-Telstra wholesale customers; address the company’s vertical integration; address its ownership of a hybrid fibre coaxial cable network; and assess its interest in the Foxtel pay TV network.

But the reforms leave scope for Telstra to keep these assets if it can come up with a plan of its own that satisfies the government.