Tough role to fill as Quigley quits NBN
The search comes as relations between the company rolling out the national broadband network and the alternative government fell to new lows, with opposition spokesman Malcolm Turnbull questioning NBN Co chairwoman Siobhan McKenna's suitability for the role and describing the company's behaviour as "unprecedented".
After four years running the company building the $37 billion national broadband network, telecommunications veteran Mr Quigley said on Friday it was the "right time" for a change in leadership.
Despite delays in the rollout and reports he had been pushed from the job, Mr Quigley said it was his decision to retire.
"I've frankly been in the company certainly as long as I had expected to. The process of handing over to a new incoming person - this is the right time in the phasing of the project," said Mr Quigley, who came out of retirement for the position in 2009. However, he signalled his replacement may have a different set of skills than himself. With the start-up phase of the project complete, the focus is on connecting millions of homes with fibre cables, limiting delays and handling challenges such as the asbestos scares.
The next NBN Co boss would need experience at "a company that builds and runs stuff", Mr Quigley said, arguing the rollout phase was comparable with running a large factory because it involves doing the same things thousands of times. "While telco experience would probably be helpful, given all the technology that is in this stuff, it's probably not essential."
Whoever gets the job, they will inherit a project that is running late and also facing ferocious political scrutiny.
Ovum analyst David Kennedy said the company was 18 months behind where its original corporate plan of 2010 had projected and a priority for the new boss would be reviewing troubled contracts. "If you look at [the 2010 corporate plan] as a benchmark they are way behind where they should be," he said.
The NBN board is responsible for finding a replacement for Mr Quigley. With an election due in the coming months and the Coalition planning to overhaul the project if elected, NBN Co did not say when it expected to make the appointment.
There have been reports Ms McKenna, a director of Lachlan Murdoch's Illyria, had put her name forward as a potential successor to Mr Quigley. But Mr Turnbull argued she would be the wrong choice, saying there were "real questions about her capacity to chair this business". Mr Turnbull also said Ms McKenna had hired a "lobbying firm at the NBN Co's expense to lobby the Coalition about her talents and achievements".
"It's certainly unprecedented. I've never seen a government business enterprise managed in this sort of way, ever," he said of the move to hire lobbyists. NBN Co did not respond to this claim in time for publication.
Mr Quigley has come under intense scrutiny in his role, including having to defend his former role at Alcatel Lucent, a company embroiled in a corruption scandal while he was a senior executive. He was never implicated in the scandal.
Former NBN Co chairman and Commonwealth Bank director Harrison Young described Mr Quigley as a "terrific guy" but would not make further comments because he had left the company four months ago.
It had previously been projected the NBN would cost $36 billion, but Mr Quigley denied there had been a cost blow-out on his watch, saying its price tag had increased because the government had expanded the scope of the project.
Frequently Asked Questions about this Article…
Mike Quigley was the chief executive leading NBN Co for four years after coming out of retirement in 2009. He announced his retirement, saying it was the "right time" for a leadership change as the project moved from start‑up into large‑scale rollout. Although the rollout has faced delays and scrutiny, Quigley said his departure was his decision.
The NBN (national broadband network) is Australia’s largest infrastructure project to connect millions of homes with fibre and other technology. The article cites a $37 billion price tag; Mr Quigley said the increase from an earlier $36 billion estimate reflected an expanded project scope set by the government rather than a cost blow‑out on his watch.
The role is challenging because the project is running late, faces intense political scrutiny, and requires managing the mass rollout of fibre to millions of premises while limiting delays and handling operational issues (for example asbestos scares). Analysts also say the new boss will likely need to review troubled contracts and get the rollout back on track.
According to Mr Quigley, the next boss should have experience at a company that "builds and runs stuff"—skills similar to running a large factory where the same tasks are repeated thousands of times. While telecommunications experience would be helpful given the technology involved, he said it is probably not essential.
Ovum analyst David Kennedy told the article NBN Co was about 18 months behind where the 2010 corporate plan had projected. He said reviewing troubled contracts would be an early priority for any incoming chief executive.
Yes. The article describes strained relations between NBN Co and the Coalition opposition, with Malcolm Turnbull publicly questioning chair Siobhan McKenna’s suitability and criticizing NBN Co for reportedly hiring a lobbying firm to promote her. There is also an upcoming federal election and the Coalition has said it would overhaul the project if elected, which adds uncertainty to the appointment timetable.
Mr Quigley had to defend his previous role at Alcatel‑Lucent, a company that was embroiled in a corruption scandal while he was a senior executive. The article notes he was never implicated in that scandal.
Investors should watch for the NBN board’s appointment of a new chief executive, any policy or project changes around the upcoming election, outcomes of contract reviews, progress reports on reducing rollout delays (including handling asbestos and other operational issues), and any further updates on project scope and cost.
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