France Telecom named a turnaround artist Dominic Saint Jean, as the new chief executive officer at Telkom Kenya, setting the stage for a bruising battle for control of Kenya's lucrative telecommunications market.

Mr Saint Jean has the job cut out for him: To convert the loss-making Telkom Kenya into a profitable outfit in less than three years, and to champion the firm to the top of the telephony market in five years.

In the turnaround efforts, he will be assisted by a deputy chief executive, Mr Peter Reinarte, who is famed for his broad commercial experience in running mobile telephony networks.

The changes come shortly after France Telecom paid Sh26 billion - giving them a 51 per cent stake in the State owned firm - to win a majority representation on the board and the power to appoint the top manager.

For growth, the new majority shareholder is banking on Telkom's newly minted mobile license to pull it out of the loss-making pit. The move places it in a head-to-head battle with Safaricom and Celtel.

The entry of the French firm into the mobile telephony market is set to trigger a shift in the market structure, which Safaricom - which controls about 80 per cent of the local telephony subscriber market, or eight million subscribers - currently maintains a near stranglehold.

This has turned it into the most profitable company in East and Central Africa, with net profits of Sh12 billion in 2007 on revenues of Sh47.4 billion.

To crack the local telecoms market, the French telephony giant is counting on its global telecoms experience, and its huge cash pile, to turn the tables on Safaricom and Celtel.

But this feat will not come easy for the French conglomerate, say a number of telecoms analysts, including the chief executive officer of Safaricom, Mr Michael Joseph.

"We are ready for them and of course will not make it easy for them," said Mr Joseph, stressing that Safaricom is set to cement its dominant position in the market place and sending a clear signal that a vicious battle between the markets' three top players is set to unfold next year.

Besides the mobile telephony, the French giant is also gearing up to offer "quadruple play" bundles of fixed and mobile telephony, broadband and television services.

Globally, telecom operators are starting to integrate their fixed and mobile networks by offering special deals to customers who buy both services together.

Mr Marc Rennard, the Executive Vice President of France Telecom and now board member of Telkom Kenya, said that the twin partnership - between Mr Saint Jean and Mr Reinarte - should be helpful to Telkom Kenya in getting a foothold in the mobile telephony market.

"Dominic has earned a reputation as one of the most respected turnaround leaders in telecoms market," Mr Rennard said. "The combination of his deep executive experience and long history as a strategic thinker makes him the outstanding choice for the job at hand."

Mr Saint Jean, a 58-year-old engineer with 34 years of telecoms experience, has strong credentials in turning around loss making firms that have been bought out by France Telecom.

His turnaround efforts have seen him do duty in South America, Jordan and, more recently, at Mauritius Telecom, where he was the immediate deputy CEO.

In Mauritius, he catapulted third-place Mauritius Telecom to the one position among mobile phone players, according to Mr Rennard.

"In the first year we should meet and beat our targets especially on the GSM business (Mobile telephony)," said Mr Rennard, stressing that France telecom has committed "several billions" in 2008 for launching its mobile phone business.

Mr Rennard said he expects Telkom Kenya to be the number two mobile phone player in three to five years.

Known as calm, brainy and an active CEO, Mr Saint Jean is expected to propose major structural changes at the firm's second board meeting during the first week of January.

A broad cost-cutting plan may supplement one initiated by the previous management, and some business lines may be cut, said a member of an integration team from the France Telkom global offices.

But while the integration team is already hammering out details, final decisions will likely not take place until after Mr Saint Jean has had several weeks to settle into the job, the team member said.

As the majority shareholder, the French firm also appointed chairman Mr Rennard, and four board members - Michel Barre, Bruno Bourgin, Nicolas Bacon, and Olivier Froissart.

The Government, which now has a 49 per cent holding, has also appointed four officials to the board. These officials include the former chairman Dr Meshak Nyambati, Ashif Kassam and the two permanent secretaries in the ministries of Finance and Information.