The combined Nokia and Alactel-Lucent will be restructured into four business groups with Nokia executives dominating the leadership positions in the combined entity. Nokia revealed its first look at how the combined companies will look should the deal be concluded.
The four business groups are: Mobile Networks, Fixed Networks, Applications & Analytics and IP/Optical Networks. These business groups will provide an end-to-end portfolio of products, software and services to enable the combined company to deliver the next generation of leading networks solutions and services to customers, Nokia said.
Each business group would have strategic, operational and financial responsibility for its portfolio and would be fully accountable for meeting its targets. The business group leaders would report directly to Nokia's president and chief executive officer Rajeev Suri.
Mobile Networks would include Nokia's and Alcatel-Lucent's Radio portfolios and most of their converged Core network portfolios including IMS/VoLTE and Subscriber Data Management, as well as the associated mobile networks-related Global Services business. This unit would also include Alcatel-Lucent's Microwave business and all of the combined company's end-to-end Managed Services business. The designated president of Mobile Networks would be Samih Elhage, who currently serves as Executive Vice President and Chief Financial and Operating Officer, Nokia Networks.
Fixed Networks would comprise the current Alcatel-Lucent Fixed Networks business. This business group would provide copper and fibre access products and services. The designated President of Fixed Networks would be Federico Guillén, who currently serves as President of Fixed Networks, Alcatel-Lucent.
Applications & Analytics would combine the Software and Data Analytics-related operations of both companies. The portfolio would include customer experience management, OSS as distinct from network management such as service fulfilment and assurance, policy and charging, services, Cloud stacks, management and orchestration, communication and collaboration, security solutions, network intelligence and analytics, device management and Internet of Things connectivity management platforms.
CloudBand would also be housed in this business group, which would drive innovation to meet the needs of a convergent, Cloud-centric future. The designated president of Applications & Analytics would be Bhaskar Gorti, who currently serves as president of IP Platforms, Alcatel-Lucent.
IP/Optical Networks would combine the current Alcatel-Lucent IP routing, optical transport and IP video businesses, as well as the software defined networking (SDN) start-up, Nuage, plus Nokia's IP partner and packet core portfolio. The designated president of IP/Optical Networks would be Basil Alwan, who currently serves as President of IP Routing and Transport, Alcatel-Lucent.
Nokia Technologies would remain as a separate entity with Ramzi Haidamus continuing in his current role as president.
Nokia expects to align its financial reporting under two key areas: Nokia Technologies and the Networks business. The Networks business would comprise the business groups of Mobile Networks, Fixed Networks, Applications & Analytics and IP/Optical Networks.
The combined company is expected to have a common sales organisation across the business groups, except for Nokia Technologies. In addition, effective after the closing of the exchange offer, there would be six additional unit leaders within the combined company, who would report directly to the President and CEO:
• Timo Ihamuotila, currently executive VP and group chief financial officer, Nokia, would serve as CFO.
• Ashish Chowdhary, currently chief business officer, Nokia Networks, would serve as chief customer operations officer.
• Marc Rouanne, currently executive VP, Mobile Broadband, Nokia Networks, would serve as chief innovation & operating officer, including overseeing Bell Labs and FutureWorks.
• Hans-Jürgen Bill, currently executive VP, Human Resources, Nokia, would serve as chief human resources officer.
• Kathrin Buvac, currently VP, Corporate Strategy, Nokia Networks, would serve as chief strategy officer.
• Barry French, currently chief marketing officer and executive VP, Marketing and Corporate Affairs, Nokia, would serve as chief marketing officer and would oversee the Marketing & Corporate Affairs unit.
• Maria Varsellona, currently executive VP and chief legal officer, Nokia, would serve as chief legal officer.
Further senior appointments are expected to be announced at later dates. The proposed changes would only be implemented after the successful closing of the public exchange offer and be subject to the completion of the relevant works council consultation procedures.
As announced on 6 October 2015, Alcatel-Lucent is to continue to operate its undersea cables business, Alcatel-Lucent Submarine Networks (ASN), as a wholly-owned subsidiary. Nokia expects to operate ASN as a separate entity.
As previously announced, Nokia has agreed to sell HERE, its mapping and location services business, to a consortium of leading German automotive companies.