NBN Co leaderless as board makes speedy departure

Time for Malcolm Turnbull to appoint “more experience” to NBN board.

a woman

Senior brass at the NBN Co have handed in their resignations to the Minister of Communications, Malcolm Turnbull, amid fears they don’t have support from the new Coalition government.

Chairwoman Siobhan McKenna, a former management consultant, has handed in her resignation to Mr Turnbull along with the rest of the board months after CEO Mike Quigley did the same. Earlier this month there was speculation former Telstra (ASX: TLS) boss and trained nuclear physicist, Dr Ziggy Switkowski, would be appointed by the government to take the helms of the company responsible for the rollout of the NBN.

According to The Sydney Morning Herald, Kerry Schott will be invited to stay on the board under the coalition’s rollout. Dr Schott criticised the board’s management of the company when run under the former Labor government.

Mr Turnbull blames the board for the company’s numerous cost overruns, delays and ultimately, the reason the company is not meeting its targets. The government is planning policy reviews and an audit in order to understand how the company can improve, including establishing a new ownership structure and increasing private sector involvement.

The coalition’s fibre-copper network is vastly different from the former Labor governments because it utilises existing copper cables. Therefore it is cheaper but offers slower speeds. As it different from the previous strategy new contracts will be required including an agreement with industry giant Telstra.

With its legendary, fully franked 28 cent dividend, Telstra is the darling of Aussie investors. But with its share price skyrocketing over the past year, is Telstra past its prime? Click here for our brand-new report: “Is It Time to Sell Telstra?”

More reading


Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies. 

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More on ⏸️ Investing