KEY POINTS:
Paul Reynolds has one of the broadest mixes of experience for a senior telco executive that Forsyth Barr analyst Guy Hallwright has seen in 15 years covering the sector.
"He looks on paper ... an excellent choice for the job," Hallwright said.
"It seems to me that he's
got a lot of experience in the kind of areas that Telecom is going to be grappling with - separation and network evolution."
Reynolds' appointment received a generally warm welcome yesterday from observers yet to meet him, although the share price closed up only 1c at $4.47.
Telecommunications Users Association chief executive Ernie Newman said he was very comfortable with Reynolds' appointment.
"I've heard quite a lot about him and quite like what I hear."
A key point for the association was Reynolds' background working at BT Wholesale, Newman said.
"BT has prospered under the operational separation scenario. I think he will not only be able to assist in pulling that process into place but I think he will also give the Telecom New Zealand team heart that this thing can be good for the company as well as good for the market.
"The other thing he's got to do, I think, is re-earn the confidence and trust of New Zealanders for Telecom as a key part of our national infrastructure and indeed a national icon ... some of that trust and confidence has been sorely tested in the last few years."
Hallwright said Reynolds' ability to direct and motivate a large team would be critical. Being an outsider could both help and hinder him.
"There'll be a period there where he's sizing them [Telecom staff] up and they're sizing him up ... but at the same time obviously he doesn't bring any baggage," Hallwright said.
Simon Botherway, of Brook Asset Management, said the market would have been happy with either the outside appointment of Reynolds or an internal candidate such as chief financial officer Marko Bogoievski.
The role of Telecom chief executive would be difficult, he said.
"I think whoever takes that role is stepping into a difficult role so I'm not saying that this automatically guarantees success but look, he does seem to be well qualified in this sort of area."
