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Thursday, 22 February 2018
Nokia taps Guillen to head up wireline network division after Alcatel-Lucent deal closes
Friday, 09 October 2015

Nokia (NYSE:NOK) has tasked Federico Guillén to head up its Fixed Networks division, a move that illustrates that the company is coming closer to completing its acquisition of Alcatel-Lucent (NYSE: ALU).


By Sean Buckley

Guillén currently serves as president of fixed networks for Alcatel-Lucent. Upon completion of the acquisition, Guillén will oversee the combined FN division, which would include the current Alcatel-Lucent Fixed Networks business that provides copper and fiber access products and services.

Joining Guillén on the wireline side will be Basil Alwan, who will serve as the president of Nokia's new IP/Optical Networks (ION) unit. Alwan currently serves as Alcatel-Lucent's president of IP Routing and Transport.

ION will 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.

In addition, effective after the closing of the exchange offer, there will be six additional unit leaders within the combined company, who will report directly to the president and CEO of the combined group, Rajeev Suri, currently CEO of Nokia. Timo Ihamuotila will continue to serve as Nokia's CFO. Nokia Networks' chief business officer, Ashish Chowdhary will serve as chief customer operations officer. Marc Rouanne, currently executive vice president, mobile broadband for Nokia Networks, will serve as chief innovation and operating officer.

The company also announced its overall structure. Upon closing of the acquisition, the networks business will be conducted through four business groups: mobile networks, fixed networks, applications & analytics, and IP/optical networks. Alongside these units, Nokia Technologies will continue to operate as a separate business group.

"Our goal is to position each business group for clear leadership in its particular market and to create a combined portfolio that provides the scope and scale our customers expect, underpinned by a strong focus on innovation, quality and superb execution," said Rajiv Suri, CEO of Nokia, in a release.

Nokia said that it expects to align its financial reporting under two key areas: Nokia Technologies and the networks business, which will comprise the mobile networks, fixed networks, applications & analytics and IP/optical networks.

The company added that it expects to announce further details of the new financial reporting structure after the closing of the exchange offer. It also expects the combined company to have a common sales organization across the business groups, except for Nokia Technologies.

After getting the remaining antitrust and regulatory approvals, Nokia said it is on track to complete the acquisition of Alcatel-Lucent in the first half of 2016.

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