T-Mobile USA CEO Humm Joins Vodafone In Europe

Philipp Humm has been appointed to run the northern and eastern European divisions of Vodafone, less than 48 hours after he formally left his post as chief executive of T-Mobile USA.

Humm was appointed CEO of T-Mobile less than two years ago, but announced he was leaving the company for “personal reasons” so that he can spend more time with his family. Chief Operating Officer Jim Ailing will replace him on an interim basis while the search for his successor is conducted.

According to an internal memo, Humm in fact  notified parent company Deutsche Telekom CEO Rene Obermann in April of his intention to  join a competitor.

Vodafone wants European experience

The competitor is Vodafone, which is splitting its European unit into two divisions as part of a structural overhaul. Humm will oversee northern and eastern territories such as the UK, Germany and Turkey from 1 October, while Paulo Bertoluzzo, the current chief executive of Vodafone Italy, will lead the company’s southern European businesses.

The change in structure results from Vodafone’s renewed focus on Europe. Growth in the northern and eastern regions remains good, but revenues in markets such as Greece, Italy, Spain and Portugal are decreasing. Analysts believe that Humm, who was previously at T-Mobile Germany, whill bring much needed expertise to the northern markers.

“Over the past 3 years, differing market developments have led to a divergence in the performance of Vodafone’s operations in northern and southern Europe, “ said Emeka Obiodu, senior telecoms strategy analyst at Ovum. “A poor economic outlook is weighing down operations in southern Europe whereas, in relative terms, the markets in northern Europe are doing ok.”

“It is thus, no surprise that Vodafone has gone for someone who has experience of managing operations in a mature European market,” he added. “Having run T-Mobile Germany, Philipp Humm would have squared up with Vodafone’s largest market in northern Europe. Accordingly, his appeal is not so much for what he did or did not do during his time at T-Mobile USA, rather it is about getting someone who understands Vodafone’s northern European markets well, and someone who can hit the ground running from the start.”

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