Since taking over in July as chief executive of Telstra, Australia’s dominant telecommunications provider, Trujillo has managed to upset many of the company’s local shareholders with blunt comments about how regulations are hurting its prospects. So even as he and his wife hunt for homes in Sydney’s toniest suburbs, shareholders large and small have been venting frustration with Trujillo – including the largest shareholder of all, the Australian government.

“I think it is the obligation of senior executives at Telstra to talk up the company interests, not talk them down,” Prime Minister John Howard told a meeting of legislators debating the company’s privatization this month, characterizing the behavior of Telstra’s new bosses as “disgraceful.”

Trujillo is one of the reasons why folks in the States always called his company “U.S.WORST”

In his latest salvo, Trujillo this month warned investors that net profit could fall as much as 10 percent this year.

More incendiary were comments by one of the three former USWest colleagues imported by Trujillo to help run Telstra, a group of men that the local media have dubbed “the three amigos.” At a dinner with journalists, Telstra’s communications and policy adviser, Phil Burgess, said he would not recommend Telstra’s stock to his own mother.

That Trujillo has managed to rile his new hosts so quickly may come as no surprise to those who remember his contentious tenure as chief executive at USWest and, more briefly at the European cellular operator Orange.

Telstra has the additional burden of being obliged to provide service to homes in Australia’s remote outback, where it faces widespread dissatisfaction. Howard’s junior coalition partner, the National Party, made ensuring continued investment in “the bush” a condition of approving Telstra’s privatization.

To get the votes necessary to approve the Telstra privatization, the government agreed to create a 2 billion-dollar fund that would invest in improving rural connections. It also agreed to force Telstra to separate its wholesale business of selling access to its network from its retail sales business, similar to the way that BT in Britain agreed to an operational separation to avoid being split.

I guess Howard is another self-titled conservative who forgets about fiscal good sense. When Trujillo and U.S.WORST sold out — Qwest had to spend million$ to repair and replace rural infrastructure that was worthless.



  1. Dean says:

    I used to be a broadband customer with Telstra’s Internet company, Bigpond, and not only was the service unreliable but they increased my contract length for an additional six months. On top of that they overcharged me for those six months and only rectified the problem after calling their so-called customer service centre in India.

    Telstra has also held up Internet speeds in the country by not laying or encouraging the use of fibre-optic. The prices here are astronomical, too. For 512 Kbps / 128 Kbps with shaping after 10 GB you can expect to pay $79.95 (US $61.01). Other ISPs are a little cheaper and offer great customer service, my main reason for switching.

    It’s about time Telstra stepped out of the way and let Australia get on par with the rest of the world.

  2. Bill Wilkinson says:

    I don’t know much about Trujillo, but I agree with our Prime Minister. The Chief Operations Officer of a company should be upbeat about the future value of the company. His role is to ensure that the company grows. If his view is that the company is not going to grow, then why the heck would you employ him.

  3. James says:

    I am AN UNAHAPPY SHAREHOLDER!!!!!!

    we need a half decent telco in this country (Aus)

    iinet, an isp is providing 12/1mb to a majority of australias population. this is light years ahead of telstra.

    the phone system is broke (like fema 😉 )

    the gsm system is broken

    the cable system has only been upgraded to digital in the last 12 months

    no HD on cable

    uploads mesured aswell as downloads

    wat can i say? tel$tra is broke

  4. James says:

    U.S. West was the worst-run of the baby bells. Somebody hired that guy? Next somebody’s going to hire Carly. And Curly. Oh, never mind.

  5. Andrew says:

    Hi John,

    The appointment of Sol has ruffled government feathers here in Australia.

    Your description of our Prime Minister Howard is also apt. As well as establishing that fund to buy the swing vote from a minority party MP, his party used their Senate majority to gag debate and ensure the sale legislation passed through unimpeded.

    With so much of Australia being ‘isolated’ and ‘rural’ I think our telecommunications system will be going downhill fast.


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