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Telstra Shake Up Revealed

By Oonagh Reidy | Wednesday | 23/10/2013

Telco changes long term strategy and rejigs business units as it looks to drum up new business

This strategy provides greater focus on growth portfolios including global applications and platforms, cloud solutions and e-health.  

These "were not opportunities three years ago and can play important roles as we head towards 2020 and beyond", said CEO David Thodey, speaking at a Telstra investor day in Sydney, today. 

The new realignment, announced today, is focused at driving core revenue and growth.

Network Applications and Services, mobile network expansion and digital media are also on Telstra's hit list of revenue drivers, as traditional revenues from fixed line phones and Sensis diminishes. 

He said Telstra must continue to focus on its core Australian business while exploring new opportunities domestically and across Asia. 

The telco has knocked down one strategy 'pillar' and now has three instead of four: Improve customer advocacy; Drive value from the core; Build new growth businesses.

"Our strategy is simpler and more impactful. It makes our ambitions clearer," Thodey said.

Management has also been shaken up reflecting this new strategy.

Brendon Riley has been appointed Group Executive of a new Global Enterprise and Services unit, worth $5 billion in revenue, operating as a global scale.

Kate McKenzie has been appointed Chief Operations Officer including the Chief Technology Office.

Gordon Ballantyne heads up Group Executive Telstra Retail: bringing together Telstra Consumer and Telstra Business, products, National Broadband Network, sales and marketing, Telstra Country Wide and the Chief Marketing Office. 

He will also have responsibility for e-health growth. 

Chief Financial Officer Andrew Penn will work with Mr Thodey and Telstra International Group President Tim Chen to work on Telstra's Asia strategy. Other CEO leadership team members reporting to Mr Thodey remain unchanged.

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