Hans Vestberg will be the next CEO of Verizon. (1
9659002) Verizon announced Friday that it will gain a technology expert and relative newcomer for its longtime CEO, who retires later this year.
The move signals that the company is tightening The focus is on developing faster and more reliable networks to distinguish themselves in a more competitive telecommunications landscape.
From August, Hans Vestberg, the company's top technology representative, will take over the reins. The current seven-year CEO, Lowell McAdam, 64, will continue to serve as Executive Chairman by the end of the year.
Vestberg, 52, joined the mobile operator last year and has worked on Verizon's networks, including the 4G LTE network. Prior to joining Verizon, he worked for network and telecommunications company Ericsson, where he spent six years as chief executive and president and chief financial officer.
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Verizon selected a technology expert to compete with other carriers to develop a 5G network capable of delivering higher speeds. McAdam hinted at this goal in a letter he sent to employees Friday morning.
"When I think about the power of 5G, I'm convinced that this is an important and crucial time for Verizon and our entire industry is time to bring Verizon to his next chapter," he wrote.
Verizon has typically relied on a strong wireless network to grow its customer base, but this strategy has recently stalled as competitors such as T-Mobile improved its service. "There are a number of ways, such as Mr. Vestberg could reshape Verizon's future, "said Piecyk, adding that Verizon and other communications companies are facing" new competitive conditions and disruptions to their existing business, "said BTIG analyst Walt Piecyk Models. "
Verizon announced his succession plan less than a week before a judge will decide on a merger between AT & T and Time Warner, and depending on the outcome, the case may encourage Vestberg to increase the company by acquiring a media company , a strategy that the mobile operator has largely avoided in the past.
One of the most notable deals Verizon completed under McAdam was the $ 130. In 2014, Verizon took over Yahoo and AOL under McAdam's leadership.
Vestberg has been around Joining the company in April 2017 as a potential successor to McAdam, said Jason Schloetzer, an economics professor at Georgetown University, which studies corporate governance
The new CEO is ahead compared to his predecessors, who would have spent more time in the company they take the lead, a relative outsider, Schloetzer said. But Vestberg will be supported by his technical know-how and his previous experience with Ericsson.
In a video conversation between the two executives, shared with Verizon employees, Vestberg said he would continue to work with McAdam when he was with the commercial side of the business. "I will continue to work with the leadership team and the strategy we have," Vestberg said.
A Verizon spokesman said Vestberg and his family would move from Sweden to New Jersey, where the company's executives are based.