Ex-Telstra chief tip for NBN
It is understood Mr Turnbull approached executives from the telecoms and construction industries in the weeks before the election to boost NBN Co's board expertise, which he described as lacking skills in building and running a complex broadband network.
"While I have no criticism to make of any of the individuals, it is remarkable that there is nobody on that board who has either run or built or been responsible for building or managing a large telecommunications network," he told ABC News.
"And given that is the core business of NBN Co, that is a singular deficiency."
NBN Co has been under pressure to accelerate the rollout of fibre optic cables as the company struggles to meet deadlines in building the country's largest ever telecoms network.
David Kennedy, director of research at consultancy Ovum, said it did not come as a surprise that Mr Turnbull was considering appointing people with more experience to the NBN Co board. "There were two specific things that he [Mr Turnbull] said the board needed: they needed more telecommunications expertise and more expertise in civil work," he said.
The costs of construction and engineering are responsible for the bulk of the estimated $37.4 billion price tag attached to the national broadband project.
The new Abbott government proposes a 60-day review of NBN Co's progress and it will look at the company's strategy and organisational structure.
Dr Switkowski is seen as the favourite to succeed outgoing NBN Co chief executive Mike Quigley.
A trained nuclear physicist, he led Telstra during its privatisation process, during which the company was sold in three tranches to private investors.
Some analysts predict Telstra will fare better under the Coalition's alternative NBN model. The core of the Coalition's alternative version of broadband is to roll out fibre to cabinets on streets, but not to homes, using Telstra's copper wire for the "last mile" connection to homes.
"We view the Coalition policy as more favourable for the incumbent telecom operator, although there's no immediate change to our medium-term cash flow forecasts. Over the long-term the market structure and competition implications are less onerous for Telstra compared with the Labor policy," said Justin Diddams, a Citi research analyst.
Frequently Asked Questions about this Article…
Incoming communications minister Malcolm Turnbull is expected to make a series of NBN Co board appointments, including former Telstra chief Ziggy Switkowski. For investors, board changes matter because new directors with telecoms and construction expertise could influence the speed and cost management of the national broadband rollout.
Mr Turnbull and others have said the existing board lacks people who have run, built or been responsible for large telecommunications networks. That gap is seen as a ‘singular deficiency’ given NBN Co’s core task of building a complex national broadband infrastructure.
Industry observers, including Ovum’s director of research, say more telecoms and civil works expertise could help NBN Co better manage the practical challenges of deployment and construction, potentially accelerating fibre rollout and improving project delivery.
The article cites an estimated $37.4 billion price tag for the national broadband project, with construction and engineering costs responsible for the bulk of that figure—making civil works a key focus for cost control.
The new Abbott government proposes a 60-day review of NBN Co’s progress that will examine the company’s strategy and organisational structure—an immediate political review investors should monitor for potential policy or management changes.
Dr Ziggy Switkowski is seen as the favourite to succeed outgoing NBN Co CEO Mike Quigley. He is a trained nuclear physicist who led Telstra through its privatisation, overseeing the sale of the company in three tranches—experience noted in the article as relevant to managing a large telecoms organisation.
The Coalition’s alternative focuses on rolling out fibre to street cabinets (but not to homes) and using Telstra’s copper for the ‘last mile’ connection. Some analysts in the article predict this policy is more favourable to the incumbent operator Telstra, with Citi’s Justin Diddams saying it’s less onerous for Telstra from a long-term market structure and competition perspective.
Investors should watch the 60-day government review, any board or executive appointments (including Switkowski), and announcements about rollout plans or cost management. These developments could affect project timelines, construction costs and the competitive landscape—factors that can influence telecom sector valuations.
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