Telstra's Network Design and Construction (NDC) arm will be integrated back into the Telstra fold after it was deemed commercially imprudent to maintain it as an independent entity.
Ziggy Switkowski, Telstra CEO said the group which was started four years ago, has failed to live up to expectations that it would generate the bulk its workload from outside of Telstra.
"The network design and construction industry has undergone dramatic changes. The outlook for the industry in which NDC operates remains soft and the overwhelming proportion of NDC's work is still derived from Telstra," said Switkowski.
"The combined demand from Telstra and other customers has steadily declined from some years ago and will decrease further as capital expenditure budgets continue to be tightly managed."
The integration of NDC should be complete by July and will, according to Switkowski, allow resources to be allocated more effectively by reducing overheads and eliminating duplication.
He said customers should see better end-to-end management of services with fewer handoffs between organisations.