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goodbye Sol « Previous | |Next »
February 27, 2009

So Sol Trujillo departs in June, richer by at least $40 million. Telstra share prices were $5.06 the day Trujillo started and they closed at $3.67 yesterday. He's been pushed out. Is Donald McGauchie next?

Trujillo's master plan to achieve the transformation of Telstra by rolling out high-speed broadband across the country is in tatters. His tenure as CEO of Telstra was marked by war with the Coalition government and the ACCC about regulation of pricing and sharing of infrastructure. Telstra refused to participate in the Rudd Government's national broadband network (FTTN) because it did not receive guarantees that there would be no operational separation, and if Telstra was released from the access rules that would otherwise require it to let competitors use the network. Telstra's strategy was to remain whole and the dominant player--the gorilla in the communications and media market.

Clearly Telstra has decided that it didn't want to fork out the $5 billion needed to build the FTTN network in the capital cities, and it reckons that a hybrid roll-out of different technologies is cheaper and more commercially acceptable to Telstra. Technology has moved on in the past four years. Trujillo's big idea of FTTN has been dumped. The future is wireless.

| Posted by Gary Sauer-Thompson at 7:25 AM | | Comments (11)
Comments

Comments

What is the surprise? Sol Trujillo did exactly what the Howard government employed him to do. He destroyed the monopoly telecomms operator and hastened the demise of the ICT industry as an employer of Australian graduates. In 1992 Telstra was responsible for 1 in 4 dollars spent in ICT. It may have the same market presence but the Telstra board have been keen proponents of offshoring ICT work to India. When Trujillo was appointed there was a lot of media coverage of his appalling performance at south west Sprint. Fortunately I have limited knowledge of Telstra's ability to connect subscribers to the copper wire network, although I have been told that Telstra rations ADSL connections through the telephone exchange. Meanwhile all the laid off linesmen and techos eke a living out what ever contract work they can glean, heaven help them if their wife hasn't got a good phone manner and is on top of the customer payments.

Is he taking the amigos with him or did they already quit? I kind of lost interest in Telstra lately; if I think about it too much I remember all the idiotic incompetence I've endured as a Bigpond member and it's not good for my blood pressure.

Ken,
he is the last to go. The others left before. BigPond is designed for business not the home. The latter is treated with contempt. Best to stay away from them.

His timing couldn't have been better. Share price down despite the monopoly, call centres closing and staff being sacked, and he escapes with squillions before shareholders cotton on to the jig.

Can we please have our internationally competitive broadband now? At the rate we're going it will be quicker to get satellite.

Thanks Gary, you might have warned me before about 500 people around the world have my bigpond.net.au email address :-(.

I have bigpond cable and a telstra home and mobile phone.
I have not had cause to ring them for 2 years. So I am happy with them.

Yes the future is wireless. Noddy could work that out.

Les,
you are one of the lucky ones going by this thread

Lyn,
Telstra needs to negotiate commercial arrangements withe consortium that builds the national broadband network. Telstras' own interest lie in gaining unfettered control of the national broadband network or resisting it at every step. My money is on the latter.

billie,
according to Donald McGauchie Sol Trujillo had the ability to "see around corners."

I will pass on getting sucked into a whirlpool of educated whining homos.

Nan, I should think Donald McGauchie who does a wonderful job chairing Telstra AGMs should be for the high jump also. If Sol was so good at seeing around corners why did he spend last year campaigning for the fella who stood against Barak Obama in the US Presidential elections. Actually who would think a Bush or McGain administration was in Australia[n]s interests.