Thami Msimango's resignation as Telkom's CTO is the second high-level resignation at the fixed-line operator this month. It has caused concern in the market over the company's operational structure.
Msimango resigned to pursue "other career opportunities within the ICT sector," a statement from the company says.
Some financial analysts have expressed concern at the news, remarking that the market will be unsettled about the company's leadership structure.
Telkom says his departure will not adversely affect the company's projects. "There will be no negative impact operationally, or with the roll-out of projects, such as Telkom's evolution to the next-generation network (NGN)," says Lulu Letlape, Telkom's group executive for corporate communication.
Last week, Telkom said Wally Beelders, its chief sales and marketing officer, had handed in his notice. Beelders said he wants to put his expertise to good use, and explore new opportunities in an industry that continues to evolve.
An analyst, who did not want to be named, says there is talk that the operator is restructuring at management level, and he is not overly concerned about the changes, as Beelders and Msimango have a long history with the company.
Key staff
Msimango, who is believed to have taken leave, headed up the NGN. His departure is concerning, says another analyst. He adds COO Reuben September and CFO Kaushik Patel are now key to the company and, should they both resign, the market would react badly.
Telkom's share lost 2.71% in early trade this morning to change hands at R161.50. It closed yesterday at R166. However, the release of disappointing US economic data would have affected the entire market, says the analyst. "All things being equal, there would be a negative impact anyway."
Irnest Kaplan, MD of Kaplan Equity Analysts, says Msimango's resignation would not impact the company's NGN project too much as there are many talented individuals within Telkom.
However, Kaplan's view was not shared by another analyst, who points out the company is losing operational and technical executives, which is worrying. The analyst says rumours abound that Vodacom is poaching Telkom staff, and it's possible that senior staff are moving to Neotel. "Obviously there is a bit of discontent at senior level, otherwise Telkom wouldn't lose people."
Not lost to ICT
Telkom says Msimango would remain in the ICT industry. Msimango has been involved in the sector for 21 years, beginning his career in the former Department of Posts and Telecommunications in 1984.
The company notes the sector "will continue to profit from his vast knowledge, experience and expertise".
Msimango joined Telkom in 1984. He was Telkom's executive for technology, direction and integration from June 2002 to June 2003, and managing executive of technology and network services from July 2003 to September 2005. He was appointed CTO in September 2005.
Where to next?
Meanwhile, there is market speculation that Msimango may be headed for a high-profile position at an entity such as Infraco or MTN, with the latter seeking a new CEO.
Msimango says he has not taken a decision on his future, but believes he will find a position in the ICT sector.
"Telkom has been very good to me and always presented me with challenges and opportunities, even when it was not fashionable to do so. I decided to leave now while the company is on the up and I know I leave it in very capable hands," he notes.
[Additional reporting by Candice Jones]
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