Neotel MD and CEO Ajay Pandey told staff late yesterday afternoon that he will return to India to take up an unspecified position within Tata Communications when his five-year contract concludes at the end of March.
Pandey is being replaced by Sunil Joshi, currently president of global enterprise solutions for Tata Communications.
Last week, ITWeb revealed Pandey's contract was not being extended, following continued lacklustre performance by SA's second network operator. Neotel delivered a R1.1 billion loss in its 2010 financial year, and its ability to continue as a going concern was questioned by auditors, Deloitte and Touche.
Sources from within Neotel and close to its board said the management team, and more specifically Pandey, was to blame for not reaching its target of capturing 15% of Telkom's client base within five years from the start of operations.
Last year, Pandey revealed the company expected to have around 50 000 subscribers at the cut-off of its 2011 financial year. This is 1.25% of Telkom's four million subscribers.
In a media statement released shortly after the announcement to staff, Pandey called his time at Neotel a “privilege and great challenge”.
New blood
Incoming Joshi brings extensive expertise in the global enterprise segment, according to Neotel non-executive chairman Narasimhan Srinath, as well as expertise in global managed and network services.
“[Joshi] is strongly positioned to take Neotel forward, along with the changing needs of the market, as enterprise customers shift their focus more towards managed services, in line with global trends," he says.
Joshi will assume control of the local telecoms player from 1 April.
“As Neotel matures in a market [whose] structure and competitive dynamics have changed, it has to be focused on a sharper vision that is underpinned by a robust corporate strategy and supporting values. While the realignment process has begun to deliver on that, Joshi and his team will ultimately be responsible for driving Neotel's growth over the next few years."
The Neotel media statement notes Joshi has more than 22 years of experience in the Indian domestic and global IT and telecommunications industry. He has led Tata Communications' strategy for emerging markets, leveraging the capabilities built in each geography to support local businesses, increasingly seeking to go global, as well as providing international customers with access into new markets.
He has been instrumental in cross-leveraging Tata Communications' resources and capabilities across the world to better serve the needs of customers in the fastest growing regions: Africa, Middle East, Asia and India.
The statement adds that Neotel is making progress with its realignment strategy.
“The strategy is focused on optimising the fit of the organisation and maximising operational efficiencies, ensuring continued work alongside the company's long-term sustainability plans. Neotel will be announcing its final realignment strategy towards the end of March, as it moves on to the next stage of its growth in the local market.”
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