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Nokia reveals structure post Alcatel-Lucent acquisition

Nokia’s planned acquisition of Alcatel-Lucent is progressing, with the company announcing the planned leadership and organisational structure that it intends to implement after – and subject to – the successful conclusion of the transaction.

"We are making very good progress on being ready to operate as a combined company when the proposed exchange offer closes," said Rajeev Suri, president and chief executive officer of Nokia. "After a thorough selection process, I am pleased to announce the company's future organisational structure and exceptional leaders who will help chart the next steps in Nokia's transformation."

As noted at the time, the combination is more of a takeover than a merger despite the companies being of a similar size (see Nokia to swallow Alcatel-Lucent in €15.6B deal). This is reflected in the proposed organisational structure with Nokia bosses dominating the new executive leadership team.

Reporting directly to the president and CEO, the team includes:

  • Timo Ihamuotila, currently executive vice president and group chief financial officer, Nokia, would serve as chief financial officer (CFO).
  • Ashish Chowdhary, currently chief business officer, Nokia Networks, would serve as chief customer operations officer (CCOO).
  • Marc Rouanne, currently executive vice president, mobile broadband, Nokia Networks, would serve as chief innovation and operating officer (CIOO), responsible for the transformation and integration of the combined company as well as overseeing the combined research activities of Bell Labs and FutureWorks.
  • Hans-Jürgen Bill, currently executive vice president, human resources, Nokia, would serve as chief human resources officer (CHRO).
  • Kathrin Buvac, currently vice president, corporate strategy, Nokia Networks, would serve as chief strategy officer (CSO).
  • Barry French, currently chief marketing officer and executive vice president, marketing and corporate affairs, Nokia, would serve as chief marketing officer (CMO).
  • Maria Varsellona, currently executive vice president and chief legal officer, Nokia, would serve as chief legal officer (CLO).

Post takeover, Nokia plans to organise the networks business into four business groups: mobile networks, fixed networks, applications and analytics, and IP/optical networks. The leaders of these four business groups will report directly to Nokia's president and chief executive officer Rajiv Suri.

Familiar faces from Alcatel-Lucent will lead three out of the four business units. Federico Guillén, who currently serves as president of fixed networks, Alcatel-Lucent, will take up the role as president at the new business unit of the same name. This unit will provide copper and fibre access products and services.

Basil Alwan, who currently serves as president of IP routing and transport, Alcatel-Lucent, will lead the IP/optical networks (ION) business unit, combining 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.

Bhaskar Gorti, who currently serves as president of IP platforms, Alcatel-Lucent, is the designated president of the newly created Applications and Analytics (A&A) business. This unit will combine the software and data analytics-related operations of both companies, including customer experience management, OSS as distinct from network management, policy and charging, security, network intelligence and analytics, device management and Internet of Things connectivity management platforms. CloudBand would also be housed in this business group.

Meanwhile Samih Elhage, who currently serves as executive vice president and chief financial and operating officer, Nokia Networks, will be in the charge of the fourth division: mobile networks. This business unit will incorporate the comprehensive radio portfolios and most of their converged core network portfolios from both companies, as well as the associated mobile networks-related global services business. This unit will also include Alcatel-Lucent's microwave business.

Nokia Technologies will continue to operate as a separate entity, under the guidance of its current president Ramzi Haidamus.

Alcatel-Lucent recently announced that it has abandoned plans to sell its undersea cables business, Alcatel-Lucent Submarine Networks. Instead Nokia plans to operate that business as a separate entity.

As announced in August, Nokia has agreed to sell HERE, its mapping and location services business, to a consortium of German automotive companies, and does not expect this business to form part of its activities post-takeover.

Further information on the proposed transaction can be found at: www.newconnectivity.com

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