Nokia, Alca-Lu reveal planned post-merger structure

08 Oct 2015

Nokia has announced the planned structure and leadership for a combined Nokia and Alcatel-Lucent, revealing an intention to split its networks business into four groups.

The company said it plans to combine assets from Nokia and Alcatel-Lucent to create four networking business groups - mobile networks, fixed networks, applications/analytics and IP/optical.

Nokia's current EVP and CFO Samih Elhage will become president of mobile networks. Alcatel-Lucent president of fixed networks Federico Guillén will oversee the combined fixed networks unit.

Alcatel-Lucent IP platforms president Bhaskar Gorti will take over the applications and analytics business while Alcatel-Lucent president of IP routing and transport Basil Alwan will become president of the optical division.

The combined company will meanwhile be designed to have a common sales organization across business groups. The company would have six unit leaders focusing on operational issues, all drawn from the current Nokia.

The heavy proportion of Nokia appointees has lead to speculation that Alcatel-Lucent's workforce could be facing significant layoffs post-merger

Alcatel-Lucent has separately revealed it plans to retain its subsea cable business, Alcatel-Lucent Submarine Networks (ASN), following the merger.

Nokia confirmed it expects to continue operating ASN as a wholly-owned subsidiary post-merger. The company is headquartered and has cable manufacturing and loading facilities in France.

ASN has deployed over 575,000km of fiber cable systems worldwide and oversees the maintenance of 330,000km of subsea cable systems.

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