Telkom's prize catch, Jeffrey Hedberg, could be roped in to help the local operation implement its mobile strategy.
Telkom went to great lengths to secure Hedberg, announcing last July that he would be joining the company to turn around its ailing Multi-Links operation.
However, a restraint of trade agreement with Cell C's parent company, Oger, meant the fixed-line operator had to wait for months to get its man.
Hedberg is famed as a turnaround specialist, and was brought in to fix Telkom's Nigerian operation, Multi-Links, which has failed to make a profit since Telkom bought into it three years ago.
Telkom has since written the company down to nothing and - at its latest results presentation for the year to March - has hinted that it may get out of the operation in part or sell it off completely.
This would leave Hedberg without a ship to steer; a situation analysts say could open up an opportunity for him to join head office.
Much needed
Chris Gilmour, Absa Investments analyst, says Hedberg is technically competent and renowned as a turnaround man after the work he did at Cell C. The fact that Telkom had to wait several months before Hedberg could start work on Multi-Links implies the company desperately wanted him, he says.
Hedberg was hired to head up Cell C in May 2006, where he was instrumental in the turnaround of the business. He took on an almost impossible task, given the company's large-scale debt.
Under his leadership, Cell C produced its first profitable results and continued to sustain profit under his guidance. It has also made strides in growing its market share through aggressive campaigns on price.
However, the company's single largest shareholder is government, which is not likely to let a white man take up the lead role, he says. Despite this, after the recent round of resignations that saw four top executives take packages, there would be plenty of scope for Hedberg, says Gilmour.
At the end of May, Telkom lost its chief of strategy Naas Fourie, MD of Telkom International Thami Msimango, head of procurement Stafford Augustine, and group executive for network provisioning Marius Mostert.
Mobile experience
Gilmour says it would make sense for Hedberg to steer Telkom's mobile strategy, which the company sees as a key growth area. This could see him stepping into Fourie's shoes.
September highlighted the importance of mobile at the company's results presentation, pointing out that the company was losing out on revenue as consumers were less likely to make fixed-to-mobile calls.
Another position Hedberg could fill would be that of leading Telkom SA. Current MD Nombulelo “Pinky” Moholi, appointed last March, is rumoured to be heading for the top position as CEO.
Gilmour says if this happens, then Hedberg would be well placed to lead the local unit, especially as its future growth seems to depend on the success of its mobile strategy. “Maybe the guy who can pull the fat out of the fire is Hedberg,” says Gilmour.
Africa Analysis partner Dobek Pater says there is speculation doing the rounds that Hedberg could head back to SA within two years to head up Telkom's mobile offering, which is expected to launch by year-end.
He says it would make sense for Hedberg to head up mobile based on his experience. Pater has heard there is already a candidate in the running to fill September's shoes.
He adds that it would not make sense for Hedberg to move on from Multi-Links after only heading up the unit for a year, unless Telkom divests from the company completely before September's departure.
“Multi-Links could have just been a placeholder... but that would have been a waste,” says Patel. He explains that shuffling CEOs in and out is disruptive to the business.
Telkom, which does not comment on speculation, says Hedberg's mandate is to “improve the operational and financial performance of Multi-Links in order to increase the value of the asset and to maximise its strategic position going forward”. His current contract relates only to Multi-Links.
Telkom's board is considering a number of options regarding how best to reduce exposure to risk in Nigeria, but has not communicated the sale of the Multi-Links asset.
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