With the next Federal Election due by May next year (and possibly earlier given the leadership struggles in Canberra) Labor criticised the hiring of Mr Rue and said it should have been an interim appointment. NBN Co chairman Ziggy Switkowski said in a statement that having an internal candidate “reduces the risk of loss of momentum in the business from the leadership change”. “With the network construction moving through a critical phase en route to completion in 2020, the board considered Stephen’s experience, including at NBN Co, and skills in financial, operational and project management to be especially well suited to the challenge,” he said. Mr Rue has been working at the NBN Co since July 2014, and will take on the chief executive role from September 1 onwards. He was formerly a chief financial officer at News Corp Australia, and has been a director on boards including Foxtel, REA Group and Australian Associated Press. Loading

He will have a $1.8 million base pay and a 50 per cent annual incentive, contingent on reaching milestones in a scorecard approved by the board. “I am honoured to lead the dedicated and hardworking team here at NBN Co, as well as continuing to work with our industry partners,” Mr Rue said in a statement. However, with no election called and the government not in caretaker mode, the appoinment is in line with conventions. The appointment was approved by the NBN board in recent weeks following a competitive process. It was then ratified by Federal Cabinet on Monday night, sources said. The government also reappointed non-executive directors Kerry Schott and Shirley In't Veld to the board.

“I joined NBN Co because I knew it would make a difference to Australians," Mr Rue said in a statement. "I look forward to continuing this journey, which will have a real impact on health, education, job creation and prosperity into the future.” 'Relentless' time Current chief executive Bill Morrow announced his departure from the NBN Co in May, two days after his fourth anniversary at the helm, describing his time as the network's boss as "relentless". In an email to staff at the time, Mr Morrow said it was with a “heavy heart” he was leaving the NBN to “pursue the next chapter” of his career. Mr Morrow recently declined to comment on his future plans when asked by Fairfax Media.

Merger talks Meanwhile, TPG Telecom said in a statement published early on Wednesday that it had entered "exploratory discussions" with Vodafone Australia about a potential merger of equals. It noted there was no guarantee any transaction would proceed, or what the terms would be. The news lifted TPG Telecom shares by as much as 8.8 per cent in early trading. Telstra shares also rose by 3 per cent on the news. TPG, which provides broadband services under its own name as well the iiNet and Internode brands, has been planning to become the fourth entrant to Australia's already crowded mobile market. It's in the process of building its own network to compete with Telstra, Optus and Vodafone. Vodafone is the third-biggest player by subscriber numbers, after Telstra and Optus.