Telecom's new chairman Mr Ray MacSharry has dismissed criticism that he has no experience in the telecommunications business and that this could work against the flotation, pointing out that seven of the 12 board members are directly involved in the company's day-to-day business.
He also says that Telecom will be competing aggressively in Britain, where it will be making suitable acquisitions as well as targeting niche markets in Europe, in cities such as Paris and Frankfurt.
Mr MacSharry, who took over as chairman this week following the shock resignation of Mr Brian Thompson, who left after joining US telecoms group Global Tele-Systems (GTS), says there is a strong management team to handle the investor roadshows. He says that, of the existing board, seven people have telecoms expertise: Mr Alfie Kane, chief executive; worker directors, Mr Gerry Melinn and Mr Adrian Harney; KPN's representatives, Mr Marten Pieters and Mr Patrick Morley; Ms Annika Christiansson, Telia; and Mr Malcolm Fallen, the newly appointed chief financial officer.
"Anyone who suggests there is not strong telecoms experience on the board, does not know the situation," he says.
He says the board regrets the circumstances of Mr Thompson's departure. "It wasn't of our making. We have to deal with it, and we have to get on with the business," he says. Mr MacSharry says he was surprised to be asked by the Minister for Public Enterprise, Ms O'Rourke, to take over the chairman's role - a move which caused deputy chairman, Mr Ron Bolger to resign (he had been chairman and had made way for Mr Thompson) - but says he is deeply honoured.
Ms O'Rourke and her advisers made great play of the importance of having a leading US telecoms figure on the board and the departure of Mr Thompson was seen as a setback in this regard. However, it has been suggested that the flotation advisers and Government officials may have over-emphasised the importance of having a US executive on the board - a suggestion on which Mr MacSharry declines to comment. Mr MacSharry, who was first appointed to the board as a non-executive director, believes his experience as EU commissioner, finance minister and in business - he is on several publicly-quoted company boards, including Ryanair and Bank of Ireland - will be of some value in his new role.
He says Telecom is a well-run company which has, and still is, experiencing radical restructuring. "It is a competitive company, providing good services at competitive prices," he says.
Mr MacSharry says Telecom will develop its role as a provider of e-commerce - positioning Ireland as the e-commerce centre of Europe - and multimedia services and will enter other markets. "We can't sit still and let competitors come to us," he says.
He sees Britain as a natural market for Telecom to attack. "We are their second biggest customer for telecoms traffic and they are our biggest customer."
He adds that Telecom will protect its market share and believes that, although the company will face further competition, those entering the market will not have the same success as "the first tranche of competitors". Although Mr MacSharry did not specify particular companies, it is understood he means companies such as Esat and MCI/WorldCom which are now well established.
"The success of the first wave of competition will not be repeated going forward," he said, adding that "in any event, Telecom's restructuring will ensure the company remains competitive."
Constrained by US stock exchange regulations as to what he can say about the flotation, he remarks that the process is firmly under way and should be "well received".
He says floating on the New York Stock Exchange is also a logical step, because 40-50 million people of Irish descent live in the US. "It is the world's primary stock exchange and I don't think it should be left out," he says. Mr MacSharry declines to comment on what may happen to Telia's interest in Telecom. The Swedish group owns 8 per cent of the group and is due to purchase a further 15 per cent, together with its alliance partner KPN.
Telia and Norwegian telecoms group Telenor are planning to merge and Telenor has a 45 per cent stake in Esat Digifone, thus presenting a conflict of interest. It is understood that the issue will be resolved within days, rather than weeks.
The most likely scenario is that Telia will sell its share back to the Government. Telia's shareholding, the flotation, the ongoing restructuring and an examination of whether Telecom needs to align itself to a new grouping now that the Unisource telecoms alliance has broken up, will be some of the issues over which Mr MacSharry will preside during his three-year term.
Unisource was linked to the US long-distance carrier AT & T and Telecom was, in turn, associated with it through Telia and KPN's involvement in Unisource. The benefits of alliances are that the partners involved deliver each others' calls at a cheaper rate.
