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Senior TPG Telecom executives to depart under company-wide restructure


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SENIOR TPG TELECOM EXECUTIVES TO DEPART UNDER COMPANY-WIDE RESTRUCTURE

BY ZOE SAMIOS

December 14, 2021 — 12.48pm
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TPG Telecom will axe three executive positions and reduce the number of
divisions it operates as part of the first company-wide restructure since its
merger with Vodafone Hutchison Australia.

The telco, which formed from the $15 billion merger of TPG Corporation and
Vodafone Hutchison Australia in 2020, will axe four divisions, with group chief
information officer Rob James, group executive new business development Craig
Levy and group executive wholesale Dan Lloyd all expected to leave the company.

A TPG Telecom spokeswoman could not confirm whether any other roles would be
impacted as part of the restructure.



TPG Telecom CEO Inaki Berroeta has implemented the first major restructure of
the company since its $15 billion merger.Credit:Louie Douvis

TPG Telecom chief executive Iñaki Berroeta said the changes were about
positioning the company for the future.



“With much of the integration work complete and our cost synergy program on
track, now is the logical time to reduce the complexity of our structure to
become a more efficient business,” Mr Berroeta said.

“The high-calibre, streamlined leadership team will ensure we are in our best
position yet to increase our competitiveness and deliver even more for our
customers.”

Under the plans, several divisions such as wholesale and new business
development will combine with other parts of TPG Telecom. TPG has hired a chief
technology officer - Giovanni Chiarelli - to run a division that operates fixed
and mobile networks, IT and digital. Mr Chiarelli was the CTO of mobile operator
South African operator MTN for the past five years.

New business development will merge with the consumer unit, led by Kieren
Cooney, and the wholesale team will be led by Jonathan Rutherford, who also runs
enterprise and government.

“Dan, Craig and Rob have each made significant contributions to the business,
especially during the merger formation and integration, and I wish them all well
for the future,” Mr Berroeta said of the departing executives.

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TPG Telecom has spent the last 18 months building its 5G network and expanding
its fixed wireless products. It has also turned its focus to growing its
enterprise customer base. When the merger took place last July, following a
lengthy court battle against the Australian Competition and Consumer Commission
(ACCC), Mr Berroeta said there would be no major job losses.

“The new structure will support us to reach our full potential,” Mr Berroeta
said. “The past 18 months have been about integration stability and navigating
the challenges of the pandemic, and as we head into 2022 with increased optimism
that COVID headwinds will become tailwinds, we will be entering a new phase of
our value creation.”


RELATED ARTICLE

TELECOMMUNICATIONS


FROM FIXING VODAFAIL TO RUNNING TPG: BERROETA'S RACE TO THE BIG LEAGUE

It has not been an easy road for TPG Telecom, which endured a protracted
two-year court battle against the competition regulator and was forced to delay
its 5G plans following a federal government ban of Chinese telco giant Huawei.
TPG Telecom was also hit particularly hard by the COVID-19 pandemic because its
mobile business is more reliant than Optus and Telstra on international
travellers and returning expats.



The unexpected resignation of the telco’s reclusive chairman and founder, David
Teoh, earlier this year, also rattled the market. TPG shares have fallen by
about 14 per cent over the calendar year, compared to a surge of more than 10
per cent for the benchmark S&P/ASX 200 index.

TPG shares were down 1.1 percent, at $6.05, in afternoon trading.

Mr Berroeta said in July he had executed on a number of his objectives - growing
TPG’s share of the ‘enterprise’ market for big corporate clients, launching its
fixed wireless products and edging towards $70 million in cost savings projected
in calendar year 2021. He also said he was happy with his efforts to combine the
cultures of the two companies.

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Zoe Samios – Zoë Samios is a media and telecommunications reporter at The Sydney
Morning Herald and The Age.Connect via Twitter or email.
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