Paul Reynolds, CEO of BT Wholesale, is about to put himself through another challenging separation and transformation project. After a 24-year career at BT, the last few of which he successfully led the effort to separate businesses within the company, Reynolds today accepted the top job at Telecom Corp, New Zealand's largest telephone company and one getting ready to break apart its retail and network businesses.

Current CEO Theresa Gattung announced her resignation in February and after eight years that term ends today.

Telecom Corp has been ordered to give Telstra and Vodafone Group greater access to its network and to separate its wholesale and retail units. This action was due in part to an Organization for Economic Cooperation and Development survey that showed New Zealand ranked 22nd out of 30 countries in high-speed Internet services adoption.

Reynolds had been head of BT Wholesale since April 2000 and had been rumored to be in line for the Telstra job that went to Sol Trujillo. Reynolds will start his new position in late September and will be based in Auckland. Simon Moutter will be acting chief executive officer until then.

Mike Cansfield, principal analyst at Ovum, said Reynolds did an impressive job leading BT Wholesale through the recession and the renaissance of wholesale as a function in the industry. He also credits him with modernizing BT and changing it into a leading innovation center. “Both achievements are considerable, and his departure is a big loss to BT” Cansfield said.

He also said Reynolds faces some serious challenges at Telecom New Zealand, including a slow broadband rollout, ongoing regulatory issues and fierce competition from Vodafone.

“Add on to this the topological challenges of both islands, and a small but dispersed population and the complexities are magnified even more. Leading TNZ will be no holiday,” Cansfield said. “All-in-all [he is] eminently suitable for his new job. His appointment is a good fit for both parties."

BT has not yet named a successor to Reynolds.