MANX Telecom's managing director Chris Hall is to stand down from his position to take up the newly created role of deputy chairman.
Financial director Mike Dee has been appointed managing director in his place.
It's expected that the change of roles and responsibilities will take place next month and the recruitment of a new financial director is already underway.
Manx Telecom chairman Sir Miles Walker said: "Chris has been managing director for 12 years during which time the company has gone from strength to strength.
"He has played a crucial role in ensuring that we have been able to provide the Isle of Man with one of the most up to date telecoms infrastructures to be found anywhere in the world.
"Now there is a new challenge – the need for a role at the highest level to develop our new business and we are delighted that Chris has agreed to take up this challenge.
"We have ambitious growth plans and Chris understands better than anyone just how important winning new business will be for Manx Telecom – especially off-Island business.
"He has extensive knowledge of the company, an in-depth appreciation of the wider IT and telecoms sector, and is highly regarded by our key business partners – all of which makes him the right person to provide a new impetus to our business development without the operational responsibilities which being a managing director inevitably involves."
In his new role as deputy chairman it is expected Mr Hall will be focusing, among other things, on promoting the company's data centre operations to ensure that Manx Telecom wins its share of the ever expanding, but highly competitive, global hosting and ebusiness sectors.
In addition his remit will include strengthening and deepening the company's strategic relationships with Manx Telecom's larger business partners.
Mr Hall said: "12 years in one job is an age in the corporate world, a huge chunk of anyone's career, and a long time in anyone's life, and I felt I needed a new challenge.
"I've greatly enjoyed being managing director, the best part of which has been working with my colleagues and with our customers.
"However, the opportunity to play a key role in expanding our business without the day-to-day responsibilities of being MD really was too tempting."
Asked about his priorities he said: "Manx Telecom's future is inextricably tied up with that of the Isle of Man, and the new role will mean that I will be able to work in an even closer way with the Department of Economic Development to encourage both inward investment and growth in the domestic economy.
"I'm especially looking forward to doing just that."
Commenting on Mr Dee's appointment, Sir Miles Walker said: "Mike has considerable experience of Manx Telecom's operations and has made a significant contribution, both as an executive, and as a board director.
"In addition to his duties as financial director he has been responsible for regulatory affairs and for our corporate IT operations and I've no doubt that he will bring fresh ideas to the role of managing director.
"In many respects in making this appointment we believe that we will have the best of both worlds – continuity and change.
"We are particularly pleased to be able to appoint an in-house candidate to such a crucial position as it shows the strength-in-depth of the Manx Telecom management team."
Mr Dee said: "It will, no doubt, be a challenge to follow in Chris's footsteps, and I look forward to continuing the close working relationship that we have had over the last 12 years.
"Self evidently, the opportunities for both the company and the Island are enormous and we have every intention of grasping them. I am greatly looking forward to my new role as managing director."
