Vodafone Reorganization Puts in New Chief for Europe

Vodafone announced the reorganization of its business structure and top management Tuesday, splitting in two its emerging-markets division and appointing a new boss for Europe.

Vodafone, the world’s largest mobile phone operator by revenue, said it had appointed Michael Combes, the former finance director of France Telecom, as the new chief executive for Europe and said Paul Donovan, chief executive of the emerging-markets division, would leave.

The group also announced that under the new system, its investment in the U.S. cellular service Verizon Wireless would not be part of any region and would instead be managed at a senior level by a team including the Vodafone chief executive, Vittorio Colao.

Vodafone owns Verizon Wireless, the second-largest U.S. mobile service provider, in partnership with Verizon Communications.

Analysts said they welcomed the moves, saying Combes would bring an emphasis on cutting costs in the mature European businesses. They said the time was right to divide the emerging-markets group because of its size.

Colao was promoted from chief executive of Vodafone’s European operations to group chief executive at the end of July.

After his tenure at France Telecom, Combes became chairman and chief executive of TDF Group, a television and radio transmission service backed by private equity.

Under Combes, TDF diversified both operationally and geographically, snapping up businesses in Germany, Finland, Hungary and the Netherlands and exploring new services like WiMax and digital radio.

“Michel Combes has a decent reputation and he’s also the sort of profile of person that Vodafone needed to bring in,” said John Davies, an analyst at Dresdner. “They had Colao doing that job so there was a gap to fill.”

Combes will now be in charge of all markets in Europe, with responsibility for marketing, technology and business services.

“I am pleased that we have recruited someone of Michel’s talents and expertise,” Colao said. “I am confident that he will bring significant experience to Vodafone, given his impressive telecoms and entrepreneurial background”.

Vodafone also reorganized its emerging-markets businesses, known as EMAPA and covering Eastern Europe, the Middle East and Africa, Asia Pacific and Affiliates into two new units and said Donovan, the current chief executive, would leave at the end of the year.

Donovan had been seen as a contender for the group chief executive role taken by Colao.

The emerging-markets group

now be split into two entities – Central Europe and Africa, and Asia Pacific – with two regional chief executives.

Originally published by Reuters.

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