Eircom's announcement yesterday that acting chief executive Richard Moat would take the reins in succession to Herb Hribar came as no surprise.
Moat joined Eircom in September 2012 and was Hribar's number two until September, when the American executive left following a decision to pull its proposed €3 billion flotation.
At this juncture in its evolution, Eircom needs continuity and stability as it continues to invest in super-fast fibre broadband. Bringing in a chief from outside the business risked stalling the progress that is being made in transforming the telco and putting it in a position to challenge its main rivals, Vodafone and UPC.
Unlike Hribar, Moat was largely supportive of the IPO strategy that its shareholders/lenders were keen to pursue earlier this year. These plans have been put on the back burner but they will likely be reheated in the next year or two.
Moat initially worked in the oil sector but changed to telecoms when the price of a barrel was just $9. After 17 years with Orange, he left to become managing director of T-Mobile, a struggling UK Deutsche Telekom subsidiary. Little did Moat know that within a number of months he would be negotiating a merger with none other than Orange.
The two brands were merged, but the combination wasn’t without its difficulties and, within a year, its chief executive, who had come from Orange side, was gone. Moat was heavily tipped for the job but it went elsewhere and he left in 2011.
The Englishman knows a thing or two about telecoms. He launched Orange in Thailand, turned around performance in Denmark and helped to boost revenues in Romania. In his short time at T-Mobile, he restructured its cost base and streamlined its product offering to customers.
Eircom has been through similar structural changes in recent years. The key now it to articulate a growth story for the business – something that hasn’t really happened since it was privatised in 1999.
Moat was 60 in September, so this is not a long-term appointment. Most likely, he has been charged by the owners with continuing progress within the business and securing a liquidity event that will give them a return on their money.
