Combative Aussie added to Crown Fibre Holdings board

Jack Matthews, a Sydney-siding Fairfax manager with a brief but colourful history on the New Zealand telecommunications scene, has been named as a surprise addition to the board that will oversee the government’s $1.5 billion fibre-to-the-home-project.

Mr Matthews is Chief Executive of Sydney-based Fairfax Digital, which manages all online media for the group, including TradeMe.

A spokeswoman for Communications Minister Steven Joyce said Mr Matthews was the final appointment to the Crown Fibre Holdings board.

Battle scars from Telecom
A US ex-pat, Mr Matthews is best-known in New Zealand as the founder of Saturn Communications, whose Wellington and Christchurch hybrid coax-fibre network is today owned by TelstraClear.

From early 1998, Mr Matthews’ company felt the competitive lash of Telecom’s so-called “pocket pricing” which targetted the Lower Hutt, home of Saturn's cable. Residents in that area were offered cheaper Telecom home line rates than those in the rest of New Zealand - a practice that continues to this day.

A July 1998 Commerce Commission report into the "predatory pricing" affair noted that "It could be argued that Telecom, by matching Saturn’s prices, is seeking to influence the expectations of Saturn (or any other potential rival) that expansion/entry into Wellington (or other regional markets in New Zealand) will be unprofitable."

But the regulator's inquiry eventually came to naught - despite subsequent legal action that included an appeal to the Privy Council - and Telecom was able to effectively run Mr Matthews out of town.

It's an experience that may still inform the un-quiet American's view on the world, and our incumbent carrier.

Balancing out Mr Milner
Rumours had swirled this week that a “more Tuanz-friendly” body would be added to round-out the Crown Fibre Holdings Board.

And certainly the Telecommunications Users' Association happy at the appointment. Chief executive Ernie Newman told NBR Mr Matthews was "An inspired choice - a very savvy, approachable guy who was one of the real characters of the industry in his Saturn days. [He] will bring a very user-centric perspective to the board".

The first round of appointments was notable for the inclusion of consultant and former Telecom CTO Murray Milner, whose recent report on the cost of fibre-to-the-home was heavily quoted in Telecom’s twin submissions to the minister, both advocating a single national network. Mr Newman also welcomed Mr Milner's appointment, praising his knowledge and experience. (Read: Telecom ally makes Crown Fibre Holdings Board.)

Not afraid to kick heads
But whatever the Fairfax manager’s lingering feelings toward our national carrier, he’s sure to bring his distinctive style to the board.

“He’s not afraid to kick heads, when he needs to. He is absolutely not afraid of confrontation,” Fairfax Digital general manager Pippa Leary said of her boss during a 2007 interview with Digital Media.

Another, anonymous employee added: “He likes pushing people, testing people. He’ll sledge them to see how they react.”

Full board line-up
The Crown Fibre Holdings board will be chaired by Simon Allen, former NZX chair and founder and former managing director of ABN AMRO New Zealand.

Andrew Body, Miriam Dean QC and Keith Tempest have also been appointed.

Mr Allen formed ABN AMRO New Zealand as a green-fields operation in 1988, resigning as chief executive in September. He has already advised the Crown on the sale of Contact Energy, the Auckland Energy Trust on its investment in Mercury Energy (now Vector) and Telecom on the largest share buy back in New Zealand history, while chairing the NZX from 2001 until 2008.

Mr Body has 19 years experience as a successful investment banker and private banker, serving as a director of FR Partners until 2001, while Ms Dean QC is a former partner at Russell McVeagh and was made Queen’s Counsel in 2004.

Mr Tempest will join the board after retiring as chief executive of TrustPower, after 23 years with the firm.