TELSTRA has reorganised its technology and network operations as it prepares to battle competitors FetchTV and Foxtel in the media market.

The reorganisation will centralise the carrier's technical operations relevant to its media business in a new division called architecture, online and media.

To be headed by former network and technology chief Michael Lawrey, the division will oversee the company's media applications, content and online services.

The carrier has also made changes to bring its network and information technology operations closer together.

Chief information officer Ashley Lazaro's job description has changed to take in a new division called IT infrastructure and services, responsible for designing its data centres and virtualisation systems.

Its wireless and fixed network operations are to be merged once again under wireless head Mike Wright after being split under former chief executive Sol Trujillo to build the Next G mobile network.

Telstra operations chief Michael Rocca said the reorganisation was made necessary by convergence between its core telecommunications and media businesses.

"I wanted to make sure that I put in place an area of responsibility that led the way as we move forward," Mr Rocca said.

"We need one area of responsibility for architecture, online and media, end-to-end, that has the capability to deliver that to our customers.

"As we move into the multimedia environment it becomes more and more important to differentiate ourselves in that area, and to do that you have to have the right capabilities and operational constructs."

The reorganisation has been announced amid big challenges for the company in both the residential consumer and enterprise markets.

Telstra is under pressure from rival internet providers hoping to snatch its customers and limit churn with new IPTV offerings such as FetchTV and TiVo.

FetchTV's launch partner iiNet has been able to offer the

service without incurring hefty backhaul charges using a terrestrial multicasting system not currently within the DNA of Telstra's core fixed-line network.

Telstra is retooling its network to address the problem and deliver service to its new T-Box IPTV service more cost-effectively.

Adopting a similar concept to FetchTV, the carrier is building new media centres closer to its customers to deliver high-quality media content.

Mr Wright will have responsibility for the new-media centres as well as improving co-ordination between the fixed and wireless parts of the business.

Mr Rocca said the company had decided to discontinue operating Next G as a separate area of responsibility.

"One the main reasons why we moved the wireless unit out on its own was to build the Next G network," he said.

"Now that's built and operating well, it's time to bring (fixed and wireless) capabilities back together again."

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* Andrew Colley
* From: The Australian
* July 27, 2010 12:00AM
http://www.theaustralian.com.au/australian-it/telstra-reorganises-for-tv-and-online-competition/story-e6frgakx-1225897193054