Hong Kong – Paul Aiello succeeds Michelle Guthrie as Chief Executive Officer of STAR, effective March 1 2007. Although announced as a resignation "for personal reasons", sources say Guthrie was forced to quit due to emerging problems in India – traditionally STAR's most successful market and, at its peak, source of up to 80 percent of revenues.

COO Steve Askew, injured in an accident last year, is officially on medical leave but believed to be leaving the company and other staff departures are expected.

With the competition gaining ground on STAR's channels in India, sources say the company has failed to compensate in other supposed growth markets like Indonesia and China. "I think you have to look at the macro environment first – given the complexity of the regulatory environment, competition in the market, we are happy with what we can achieve," says a STAR spokesperson.

New CEO Aiello joined STAR in June 2006 in a newly-created role, and was formerly Managing Director and Head of the Telecom, Media and Technology Investment Banking team for Morgan Stanley in the Asia Pacific region. His background in Mergers & Acquisitions is leading to analyst speculation that more M&A activity lies ahead for STAR. "STAR has always been and will continue to engage in M&A activities which will take STAR to a new level of growth," the spokesperson adds.