Vodafone rings the changes with Sarin departure
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Arun Sarin, the chief executive who safeguarded Vodafone's dominance among mobile operators by expanding into emerging markets, announced his departure on Tuesday, saying he had achieved all he had set out to do. He will be replaced by his deputy, Vittorio Colao, in July.
Analysts welcomed the smooth transition at the top of the world's largest mobile phone group by revenue but said that it had come slightly earlier than expected.
"I have achieved what I set out to achieve on becoming CEO and therefore I felt the timing was right," Sarin told reporters on a conference call, adding that he did not expect the group's strategy to change. He warned that Colao, 46, will have to navigate the tricky economic slowdown ahead.
Vodafone made the announcement as it issued a solid outlook for 2009 and annual results for the year ending March 2008 either in line with or slightly ahead of forecasts.
Under Sarin, the mobile group expanded into faster-growing emerging markets such as India and Turkey and developed new tariffs and products for services such as downloading games and music to attract customers in the more mature markets of Europe.
"Arun Sarin ... leaves with his reputation intact," analysts at ING said in a note to clients. "He has successfully implemented Vodafone's new strategy after coming under intense pressure a couple of years ago.
"The timing ... may have caught the market unaware (maybe a year earlier than expected?), but Arun Sarin's successor is no surprise."
During Sarin's time as CEO, Vodafone has increased its customer base from 120 million to more than 260 million, including its share of affiliates.
Photo: Reuters