2 Degrees, steady as she goes

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Changes in CEO and controlling shareholding won't affect the company's direction, says deputy chairman

By Rob O'Neill | Auckland | Monday, 20 July, 2009

The sudden replacement of Mike Reynolds as CEO of mobile provider 2 Degrees does not signal any major changes in strategy of direction, the company’s deputy chairman says.

Stewart Sherriff, who is also the CTO and senior vice president of 2 Degrees new controlling shareholder Trilogy International Partners, says last week’s changes do not signal any changes of strategy or of 2 Degrees’ go-to-market plans.

He says those plans are long term and 2 Degrees’ two Trilogy board members have been involved in planning and delivering them.

“We’ve been shareholders and have two seats on the board,” Sherriff says. “We’re comfortable with the strategy and that it is being executed to plan.”

Last week, Computerworld broke news of major changes at New Zealand’s new mobile challenger after the company’s Wikipedia entry was altered to announce Trilogy had acquired a majority shareholding and that CEO Mike Reynolds was departing.

Sherriff told Computerworld that 2 Degrees’ new CEO, Eric Hertz, was in New Zealand last week and Computerworld subsequently secured the first local interview with him. Hertz left the CEO’s desk at Seattle-based mobile and wireless company Zumobi a year ago.

Sherriff says there are no plans to list 2 Degrees. Speaking to rumours that TelstraClear could be interested in buying the company, Sherriff says it “doesn’t make sense to sell a network days before you launch”.

As controlling shareholder, Trilogy now has four seats on 2 Degrees’ eight-member board. Sherriff says the current board member for former shareholder General Enterprise Management Services (GEMS), Fergus Wilmer, will stay on the board as one of Trilogy’s representatives.

Trilogy bought GEMS’ interest in 2 Degrees in exchange for 8 percent of its own equity.

2 Degrees is expected to launch services next month. It is currently trialling users on its network.