2degrees chief exec steps down

Outgoing chief executive of 2degrees Mike Reynolds.

Just a week after launching an advertising campaign to convince mobile phone users to switch to its network, the boss of newcomer telco 2degrees says he's stepping down.

Mike Reynolds has announced he will leave the job next month, just after the new network becomes live.

Reynolds is taking up a new job in his native United States, and would be replaced by Seattle mobile company Zumobi's chief executive Eric Hertz.

Departing chief executive Reynolds said that "while he has enjoyed his time heading up 2degrees and having the opportunity to play a role in bringing much needed competition to the mobile market, he has accepted an opportunity back home in America."

"I look forward to continuing to contribute to the success of 2degrees in a different capacity and I'm pleased to be handing over the leadership of the company to Eric Hertz," he said. "In true 2degrees fashion where everyone knows someone who knows some one... I've known Eric for many years and worked with him in the past, and I can assure you the future of 2degrees is very bright with Eric at the helm."

"He's a great guy and an experienced leader and I look forward to assisting him and 2degrees through launch in any way I can," said Reynolds.

On behalf of the board, Sherriff congratulated Reynolds on the "excellent job he had done in setting up 2degrees as the market challenger, bringing critical regulatory issues to the forefront of public discussion and preparing the company for launch."

2degrees has also changed majority shareholder, with North American investor Trilogy International Partners increasing its shareholding from 26 per cent to 52 per cent, deputy chairman Stewart Sherriff said.

"Trilogy has agreed to purchase the interest currently held in 2degrees by Hong Kong based General Enterprise Management Services (GEMS) in exchange for approximately 8 per cent of Trilogy equity. Fergus Wilmer (formerly representing GEMS) will remain on the board of 2degrees representing Trilogy," he said.

The company's remaining shares were owned by English Investors Communication Venture Partners (26 per cent), Hautaki Trust (20 per cent) and unnamed "business associates" (2 per cent).

- NZPA