/ 25 January 2011

Neotel appoints new MD and CEO

Neotel announced on Tuesday that it had appointed Sunil Joshni as the company’s new managing director and chief executive operator.

Joshni will take up his position at the company on April 1, replacing Ajay Pandey who spent five years with Neotel.

Non-executive chairman N Srinath said: “Sunil brings with him extensive experience in the global enterprise segment as well as expertise in global managed and network services.

“He is strongly positioned to take Neotel forward along with the changing needs of the market, as enterprise customers shift their focus more towards managed services, in line with global trends.”

Joshni had more than 22 years of experience in the Indian domestic and global IT and telecommunications industry.

He had led Tata Communications’ strategy for emerging markets, leveraging the capabilities built in each geography to support local businesses wanting to go global and provided international customers access into new markets, Srinath said.

“Sunil’s astute client-driven approach, coupled with Neotel’s network offering would enable the company to differentiate itself and add value to its customers.”

‘Solid player’
Srinath said Neotel thanked Pandey for his contribution in establishing the company as a “competitive start up operation and for turning it into a solid player in the South African market”.

“He [Pandey] leaves behind him a firm foundation for Sunil to build on and a company that now has a strong base of customers, an extensive IP-centric optical fibre network and world class data centres, supported by access to Tata Communications’ global network and capabilities.”

Last week auditors expressed concern about Neotel’s ability to continue business.

The company’s recurring losses from operations and shareholders’ deficit raised doubt about its ability to continue operating, Deloitte & Touche said in an annual report filed with the United States Securities and Exchange Commission.

In December, Neotel said it was considering “realignment and restructuring” as it evaluated its business strategy.

This came in response to questions about allegations that the company was planning to fire staff in light of tough economic conditions and strong competition.

In November India’s Tata Communications, which owns 56% of Neotel, reported that shareholders and lenders were discussing ways to meet the funding shortfall as envisaged in the revised business plan.

It said the directors had reviewed the company’s cash flow statement for the forthcoming year to 31 March 2011 and said they were satisfied that the company had access to adequate resources to continue in operational existence for the foreseeable future.

Last month technology newswire service TechCentral quoted Neotel’s head of human resources, Lucky Ndwalaza, as saying in a letter that Neotel would consult staff in January and February, with retrenchments likely to follow in late April. — Sapa