Telstra poaches Microsoft Australia’s boss to lead $15bn infrastructure business

Microsoft’s local boss Steven Worrall is leaving the tech titan to helm Telstra’s $15bn infrastructure business as the telco bets big on artificial intelligence.

Steven Worrall has led Microsoft Australia and New Zealand since 2017 and will start at Telstra in September to lead its infrastructure unit.

Microsoft’s Australia and New Zealand boss Steven Worrall is leaving the tech titan to helm Telstra’s $15bn infrastructure business as the telco bets big on artificial intelligence.

Mr Worrall will succeed Brendon Riley, the retiring chief executive of Telstra InfraCo – a business that manages the telco’s infrastructure business, spanning data centres, towers and its $1.6bn intercity fibre network – which Microsoft signed-on as its first customer last year.

Mr Worrall will start on September 1 and report to Telstra chief executive Vicki Brady. A successor to his role at Microsoft is yet to be named.

Ms Brady said Mr Worrall was a “highly regarded leader known for strong delivery” in global tech, artificial intelligence and business and consumer segments”.

“Steven’s approach to partnerships, such as Microsoft’s $5bn Australian investment in cloud computing and AI infrastructure, coupled with his experience leading and growing technology and software businesses are great fits for our ambitions for Telstra InfraCo,“ Ms Brady said.

Telstra was looking to offload InfraCo – widely flagging plans to sell some fibre assets to fund operations. But it surprised the market 18 months ago and decided to retain ownership. Then last August it revealed it had signed on Microsoft as a customer to the high-speed intercity fibre network.

The project involves rolling almost 14,000 kilometres of new fibre cabling, which will connect capital cities across the nation as well as Asia and companies to data centres. As part of the deal, Telstra became Microsoft’s biggest user of its Copilot AI assistant, buying 21,000 licences.

Telstra chief executive Vicki Brady.

Ms Brady said it was a “symbiotic partnership”, when announcing the deal, and underscored the critical role of robust connectivity infrastructure in fuelling AI advancements.

“As we move into this new era of AI, connectivity has never been more fundamental. There’s so much to be excited about when it comes to AI – including generative AI tools like Copilot – but none of it works without the foundational layer of secure, reliable connectivity,” she said.

“Our intercity fibre network routes connect Australia to the world, seamlessly transitioning terrestrial fibre to our extensive international subsea fibre network. This partnership, which involves building high-capacity intercity fibre routes for Microsoft, further enables Microsoft to boost its capacity and achieve end-to-end connectivity across key telecommunications routes in Australia and across the Asia-Pacific region.”

At Microsoft, Mr Worrall leads a team of more than 3,000 people who support 10,000 partners and software vendors. He previously worked at IBM for 22 years, serving in senior roles, including leading its Software Services group in Asia Pacific and international growth markets as well as heading its global WebSphere software business.

Ms Brady paid tribute to Mr Riley, saying had made “significant contributions” during his 13-year tenure.

“We will miss his passion for the company, commitment to the development of its talent, his advocacy for customers and regional Australia, and the important role he has played as a senior leader. We all wish Brendon the very best as he moves to the next stage of his career as a non-executive director and adviser.”

Telstra is rolling out 14,000 kilometres of cable as part of its intercity network.

InfraCo’s income firmed 2.2 per cent to $2.1bn in the six months to December 31. Telstra has previously told investors that it allocated $300m to the intercity fibre network in the 2023 financial year to the project, with a further $300m expected to come from its FY24 revenue. The remaining $1bn will be allocated between 2025 to 2027.

Telstra has completed more than 3000 kilometres of fibre construction of the network.

This includes a connection from the Sydney CBD to the St Leonards exchange on the lower north shore. The St Leonards exchange is the meeting point of the Sydney to Canberra, Sydney to Brisbane and Sydney to Perth intercity fibre routes.

“We are in the planning stage of another five routes. One of these is the critical Darwin to Adelaide route which is already attracting significant interest because of the important connection it offers to the rest of the world,” Telstra said.