DAVID Thodey has had the misfortune of taking on arguably the hardest job in corporate Australia at one of the worst times in the company's history, but he seems to be warming to the task.
Throw in an anaemic economy, a government committed to structural separation, technological changes speeding the copper network redundancy, more nimble competitors leaving the company for dead, the mess left by Sol Trujillo, and coping with a board of directors who backed the predecessor's failed strategy.
The company's stock price has underperformed the market by some 26 per cent in the past year, and having heard nothing but reassuring words all year, shareholders are getting decidely restless.
Some would say even revolutionary.
Thodey "celebrates" his one year anniversary today with a rare public outing, addressing the Trans-Tasman Business Circle in Sydney, in which he will finally talk up the future and his own excitement about the company.
This is both welcome and overdue.
In an interview yesterday, Thodey still seemed as laid back as he did a year ago -- indeed, as laid back as he did nearly a decade ago when he was running the mobiles division.
However, when told of the restless share register, he sternly replies: "I am very clear on the direction for the company."
That is good news, but the trick is to let the rest of us in on the secret.
The national broadband network is, of course, the elephant in the room. It's impossible to talk to Thodey without talking NBN -- but impossible for him to answer while the talks are continuing.
He has established a good relationship with Communications Minister Stephen Conroy and it is noticeable that the minister has wound back his rhetoric big-time.
The focus of the talks is regulatory shifts, which may create value for the company without having to cost the government any more money.
There are likely to be straight-out bribes such as a big increase in the $150 million universal service obligation to provide services to the bush, which is part-industry and part-government funded.
Conroy has set an end-of-June deadline and both sides would prefer it is finished well before, but from Thodey's perspective there are no good solutions -- just the best of a bad lot.
He laughs at talk of a Plan B, saying there also Plans C, D and E, none of which will be rolled out until he knows where the government stands.
Thodey has already backed away from the strict profit margin protection which for so long has formed the basis of Telstra's corporate strategy, as with any other dominant incumbent.
He concedes that Optus has had "a good six months" and is responding with price cuts, unveiled last week. Today he will outline new applications available through the soon-to-be-released iPad.
Just how much this talk will satisfy the sharemarket is unclear, and it is fair to say that while Thodey is clearly growing into his job and shows confidence in person, the market is yet to be convinced.
The same goes for his chair, Catherine Livingstone, a details person who is better at asking questions than selling shares to the public.
But the relationship between Thodey and the board is rock solid -- in his words "tough, open and frank".
Part of the problem is Telstra's ubiquity. Everyone has a story of its stupidity and its reliance on technology which is inherently difficult to explain and exploit.
As Thodey says, in an implied criticism of his predecessor, you can't just say we are transforming the company and then put your feet up and relax, because it's a constant process.
His mantra is about simplifying, becoming more efficient, improving customer service, breaking down the silos and actually growing the business.
That's the bit that's yet to come: achieving the balance between growing or holding market market share and sacrificing margin in the process.
Last year was the foundation year; this year -- government shareholder willing -- one that shows some signs of progress.
Media chief quits
IN related news, Telstra executive director, media relations, Andrew Butcher has quit the company and will establish his own communications operation in Melbourne. He will continue to give strategic advice to Livingstone and Thodey.
