Deutsche Telekom AG named Rene Obermann, the head of the company's T-Mobile wireless division, as its new chief executive today.
Europe's biggest telecommunications company announced the decision following a meeting of its supervisory board and after CEO Kai-Uwe Ricke tendered his resignation after four years in the top job.
The Bonn, Germany-based company said in a statement its supervisory board decided to appoint Obermann as chief executive officer, effective immediately.
Shares of Deutsche Telekom rose nearly 3.6 per cent to €13.58 in Frankfurt after the decision was announced.
Klaus Zumwinkel, chairman of the supervisory board, which is the equivalent of a board of directors, said Obermann, 43, would serve well in keeping costs contained and moving the company forward.
"Rene Obermann is a strong entrepreneurial leader with over 20 years experience in an industry that is characterized by fast technological changes and constant new challenges in the market," he said. "His career has a strong international influence, particularly through the successful internationalization of T-Mobile. Customer focus and service are of high priority to Obermann. At the same time, he will continue managing costs effectively."
T-Mobile has been one of Deutsche Telekom's bright spots, mainly through strong growth in the US in recent years. While with T-Mobile, Obermann helped cut expenses there by €1 billion and oversaw the elimination of 1,500 jobs.