Barry Maloney, the venture capitalist and former chief executive of Esat Digifone, has stepped down as chairman of O2 Ireland to avoid a conflict of interest with a new firm he is joining.
Mr Maloney, who built Esat Digifone into a hugely profitable company before it was purchased by British Telecom and later rebranded O2, is to become chairman of a start-up mobile firm called Clever Communications.
Clever Communications is currently seeking to sign a deal with one of the three mobile phone networks to buy airtime that would enable it to supply services to customers. The company is already involved in talks with O2, Vodafone and Meteor about concluding a so called "mobile virtual network operator" deal.
Virtual operators are firms that supply mobile phone services to customers but do not own their own mobile network.
Mr Maloney, who notified the company's registration office about his resignation as chairman in mid-April, said yesterday he didn't want to be in conflict with the firm in any way.
"I left the company as chief executive officer about four and a half years ago and Benchmark is now pursuing new opportunities in the sector," he told The Irish Times. "It was a fantastic experience to have the chance to build a firm from 40 to 50 employees into a major mobile phone company."
Mr Maloney is a director of Benchmark Capital, a venture capital company which invests in a range of technology and telecoms related firms. Benchmark Capital is providing the start-up capital for Clever Communications, which is being headed by Mr Niall Norton, the former finance director of O2 Ireland.
Mr Norton and Mr Maloney both refused to discuss the prospects for Clever Communications before a deal is completed.
Meanwhile, an O2 Ireland spokeswoman said the firm had no plans to appoint a new chairman to replace Mr Maloney.
"We recently beefed up our management team by appointing a finance director and human resources director so we are not looking to replace the post of chairman," she said.
O2 is currently the second biggest Irish mobile firm with about 40 per cent marketshare.
Mr Maloney was appointed joint chief executive of Esat Digifone in 1996 and made almost €50 million when he sold shares to British Telecom in 2000. As director of Benchmark Capital he has masterminded the firm's investment in several Irish companies including the electronic payments firm Alphyra and the software firm Openet Telecom.
Mr Maloney is also an investor, along with his two brothers Mike and Alan, in a €23 million estate in Mayo, which hosts a hotel and 46 houses. The 100 acre scheme,is being developed now.
