Wednesday, February 25, 2009

Telstra is looking to replace Trujillo

What was rumoured before is now a fact: Sol Trujillo will step down as Telstra's CEO by June 30. The board expects to have found a successor by that time.

This is potentially good news for all who believe in open access FTTH. The real reason for Trujillo's departure may remain undisclosed, but under his rule a way back into the NBN process would have been impossible. There's a good chance that the board realised that change has come to the telecoms sector and open access is the name of the new game. Trujillo typically believed in a closed network and vitriol-rich press releases to undermine his rivals.

Competitors should be valued as wholesale customers. And if this whole co-opetition thing doesn't work, then there is just one solution: structural separation. The threat of structural separation could have been another reason for the board to end Trujillo's reign: under a new CEO, the government may feel it isn't necessary after all.

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