Telstra reshuffles execs in new restructure

Telstra's Kate McKenzie has received a promotion to chief operations officer as part of a reshuffle of the company's executive team and business divisions.
Written by Josh Taylor, Contributor

In yet another organisational restructure, Telstra has today announced a number of business unit changes, and a reshuffle of its executive team.

The telco giant's chief operations officer will head up a new AU$5 billion business unit known as the Global Enterprise and Services division that will incorporate Telstra's cloud division known as Network Application Services, but will also include a new, as yet unnamed cloud division, as well as Global Applications and Platforms, Telstra Ventures, Telstra Enterprise, and the government and Department of Defence divisions.

The division is viewed within Telstra as one of the most critical for the company's future growth, with the company recently securing a number of major cloud services deals, and an AU$1.1 billion terrestrial communications network deal with the Department of Defence.

As Riley moves over to the newly created division, Telstra's innovation, marketing, and products group managing director Kate McKenzie will take on Riley's former chief operations officer role, which will now include the chief technology office and innovation portfolios in Telstra Operations, along with the company's fixed and mobile networks.

Telstra's chief customer officer Gordon Ballantyne will become the group executive director for Telstra Retail, with a responsibility for all customer-facing divisions of Telstra, including consumer, business, National Broadband Network, sales and marketing, and Country Wide. He will also oversee the company's new e-health division.

Thodey said that the restructure highlighted the increased focus on global growth for Telstra.

"We must serve our global customers at international scale, leveraging our expertise into Asia and other regions, while seeking to deliver outstanding customer service every day in every home, street, and business around Australia," he told investors in Sydney today.

"This strategy provides greater organisational clarity around our growth portfolios. New businesses such as global applications and platforms, cloud solutions, and e-health were not opportunities three years ago, and can play important roles as we head towards 2020 and beyond."

The executives will start in their new roles on Monday.

All other executives in the team today stay in their current portfolios, Thodey said, but he announced that Telstra's group executive for corporate affairs, Tony Warren, would again be leading the negotiations with the government for the NBN.

Warren said that Telstra has not yet entered into negotiations with NBN Co over a proposed change in the AU$11 billion agreement it had secured under the last government. He indicated that this will commence when the 60-day review of NBN Co has been completed.

On the question of whether Telstra would be brought in for more construction or other work for the NBN, Warren said that Telstra is happy to play a role, but that the company would approach this separately from the renegotiation of the original deal.

McKenzie today boasted that Telstra is leading the pack in the number of customers on the NBN. Telstra did not name the number of customers it has on the NBN, but it would need to be higher than the reported 20,000 customers that iiNet has on the NBN, meaning that Telstra and iiNet would have the bulk share of the close to 70,000 customers on the network as of the end of June.

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