ASX-listed Telecom New Zealand (ASX:TEL) has invested NZ$3 million a day over the last financial year as part of a five-year plan to transform the company, according to its chairman, Wayne Boyd.
In the company’s annual presentation to shareholders, Boyd described the strategy undertaken by CEO Paul Reynolds to ensure the long term health of the company as “the most far reaching transformation of any telecommunications company in the world”.
“While changing our company on such a massive scale is essential, such complicated, radical change carries few guarantees,” he said. ”In this context, the previous year has been one of remarkable success.”
Boyd said the high level of investment had bought the company its XT Mobile Network, an improved range of handsets, worldwide roaming capabilities, improved fixed line services, and new revenue streams from mobile data products.
Boyd described the company’s requirement to operationally separate as the most detailed and far reaching in the world
“Paul Reynolds frequently describes delivery of [the separation] as ‘the mother of all IT programmes’. It is certainly the largest IT programme ever undertaken in New Zealand.”
Boyd also addressed the issue of executive remuneration, particularly that of CEO Paul Reynolds, arguing that performance deserved to be rewarded.
“More than at any time in history, Telecom needs world class management,” he said. ”It is appropriate that the executive team is rewarded for leading what is already New Zealand’s most complex business through a complete rebuild.”