Esat Telecom's chief executive Mr Neil Parkinson will be replaced less than a year after accepting the post, the group announced yesterday. The move was said to be part of a management reshuffle prompted by a restructuring that will see Esat Digifone integrated into BT's global mobile group, BT Wireless. Mr Parkinson, who has worked for Esat since 1996 and netted $7 million (€7.4 million) when it was sold to BT, will be succeeded by Mr Richard Cooke, chief executive of Esat Business.

Mr Parkinson said last night the group chief executive role had always included the three divisions of the company - Esat Business, Esat Fusion and Esat Digifone. This would change when the company was split up.

He has accepted a new role as non-executive chairman with the Esat Group. He will also join the board of the mobile subsidiary.

Both positions are part-time roles and Mr Parkinson will now be free to pursue other business interests.

Unlike Mr Denis O'Brien, who filled the role of non-executive chairman at Esat for several months following its acquisition by BT, Mr Parkinson has signed a "non-compete clause". This will mean he will be precluded from joining a commercial organisations in direct competition to Esat Telecom. BT was heavily criticised last year when Mr O'Brien resigned from Esat and established telecoms company eIsland.

Esat and BT sources last night said Mr Parkinson's move was amicable and denied he was being sidelined due to his former close relationship with Mr O'Brien.

Mr Parkinson was a surprise choice as group chief executive following British Telecom's $1.9 billion acquisition of Esat Telecom in April. Previously chief financial officer at Esat, Mr Parkinson had little general management experience prior to this promotion.

At the time of his appointment, there was speculation that he was favoured to Esat Digifone boss, Mr Barry Maloney, due to his close ties with Mr O'Brien.

BT Wireless is likely to be floated in the second quarter.

Esat Business and Esat Fusion will become the new Esat Group, which will become part of BT Ignite.