NBN Co to shed 800 staff, Tyler & Forsell to depart as key units are streamlined

NBN Co will reduce headcount by 800 employees over the next five months as it moves past its volume build to more normal operations. And an extensive management shakeup will see its business silo abolished and head executive Paul Tyler leave the company next month.

The staff reductions have been long anticipated as the build winds down and are arguably shallower and later than might have been expected. “NBN Co currently employs around 6,300 employees and has managed the size of its external workforce of specialist contractors in line with requirements to complete the final stages of the initial build,” CEO Stephen Rue said in a statement.

NBN Co said it paused the majority of internal restructuring activities over the last six months to ensure the company remained well-resourced to complete the initial build as well as support network connection and rectification, amid the increased data and operational demands brought on by the COVID-19 crisis.

“As we transform for the future, NBN Co will become a smaller organisation, moving to an organisation of around 5,500 people by the end of this calendar year,” said Rue.

NBN Co is also streamlining its management silos.

Residential Sales and Marketing & Business Sales and Marketing will be integrated into one business unit to be known as Customer, Product and Marketing, which will be led by Brad Whitcomb as Chief Customer Officer.

Paul Tyler, Chief Customer Officer for Business will leave NBN Co in August.

A dedicated Networks, Engineering and Security business unit will be established to “further integrate technology, architecture, engineering and network functions, drawing closer alignment of NBN Co’s network strategy and solutions to heighten performance and future capability for customers.” This unit will be led by John Parkin, the current Chief Network Engineering Officer.

Network Planning and Deployment “will move to an agile model that will integrate the design, execution and governance of all work that drives service delivery from build through to a live service,” and will be led by Kathrine Dyer as Chief Operations Officer. NBN Co’s Strategy and Transformation function led by Will Irving, Chief Strategy and Transformation Officer, will be expanded to include the company’s Legal, Data and Analytics functions. This combined business unit will be known as Strategic Services. After more than ten years with NBN Co, Justin Forsell, Chief Legal Counsel and Security, has decided to leave the company later this year.

Chief Development Officer, Regional and Remote Gavin Williams, CFO Philip Knox, CIO Debbie Taylor, Chief People and Culture Officer Sally Kincaid and Chief Corporate Affairs Officer Felicity Ross will continue in their current roles.

Who is Telstra’s new network chief?

Canadian national Nikos Katinakis may be virtually unknown in Australia, but his appointment at Telstra’s networks division comes after several years at the coalface of arguably the fastest operator deployment in history.

Katinakis was the networks EVP at Reliance Jio in India which, in less than two years, has signed 215 million subscribers (that is not a typo). It gained its first 50 million subscribers in a mere 80 days and added around 100 million more in the last 12 months.

Jio launched LTE service across India in the 850MHz, 1800MHz and 2600MHz bands with an aggressive pricing offer: free and unlimited voice calls across the country. Its flagship plan is priced at just under $4 per month.

Its success as a challenger is said to be the inspiration behind TPG’s proposed 4th network rollout in Australia.

Katinakis was with Jio from launch but left in mysterious circumstances a few weeks ago with Indian financial press reporting a departure of several expatriate executives from the company. There was speculation that this may have been due to cultural difficulties with the family-run nature of the Reliance business, as well as a change in the focus of the business to expand into fixed broadband.

He was hired from Canadian telco Rogers Communications where he held senior technology roles for five years. Rogers took him in-house from Ericsson Canada where he held a key technology and account role. In fact, during his time at Ericsson in the late 1990s, Katinakis was granted seven separate patents for cellular network technologies including a technique for emergency call handling, duplex communications between base stations and a simultaneous voice and data delivery protocol.

One of the fascinating aspects to his hire is not only his Ericsson ties but the fact that Reliance Jio is one of a few international customers for Samsung network equipment. Although Telstra is an Ericsson shop, CommsDay has previously reported that Huawei and ZTE had been shortlisted as potential bidders for its 5G network.

But with the prospect that both those companies may be prevented from supplying Australian 5G, this could remove the competitive tension from the tender. Katinakis’ deep familiarity and apparent comfort with Samsung as a supplier is a useful relationship to bring to Australia.

(This appeared in CommsDay 31 July)