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Management Reorganization In Nokia With Focus On 5G Network Market

Management Reorganization In Nokia With Focus On 5G Network Market
According to a communiqué by the Finnish firm and former global leader in mobile handset manufacturing, Nokia issue on Thursday, there is a major reshuffle going on thin the management of the company.
Thursday’s press communiqué by Nokia announced the leaving of the Finnish company by its head of mobile networks arm – which is also the largest business unit of the company, as a part of its strategy of a management overhaul to place the company securely and adequately in the race to the development and deployment of the 5G technology,
Described by Nokia to be an "expert in radio technologies", Tommi Uitto, a Finnish citizen, would replace the head of the mobile networks business, Marc Rouanne, said the company in the statement.
This is the second exit of a member of the top management from the company with the last few weeks. The last time a senior executive left the company was Ilkka Rahnasto, who was the head of its patent business and who resigned from his post at the beginning of last month. The second senior executive to follow that same path in a short period of time is Frenchman Rouanne.
The plans and the strategy as announced by Nokia is to create a single division by merging its existing two business divisions – the mobile networks unit and the fixed networks business groups. The new business entity would be called Access Networks which will be headed by an executive in the rank of a president of the company but Nokia is yet to decide on a name for the same.
The mobile networks business is a cash cow for the rejuvenated Nokia and its revenues account for about 30 per cent of the total revenues that are generated by Nokia. Under the leadership of Rouanne, this business division had been entrusted with the job of development and selling of new 5G technologies which is yet to be widely adopted by telecom companies and in which the telecos have invested little yet.
"By creating a single Access Networks organization that includes both fixed and mobile, we can improve our customer focus, simplify our management structure, and more efficiently leverage our full portfolio," Chief Executive Rajeev Suri said in a statement.
Since Nokia acquired its Franco-American rival Alcatel-Lucent in 2016 for 15.6 billion euros, Uitto has been leading mobile networks product sales business.
Rouanne joined Nokia from Alcatel-Lucent back in 2008.
There was a drop of 1.7 per cent in the shares of Nokia following the news.
While reiterating its ambitious plan and projection for profit last month, Nokia also at the same time announced a new cost-cutting program. The company said that for the remained of the current year, there would be a spurt in the demand for 5G from telecom operators.
There has been a slowing of demand for the existing 4G network for a few years now and the players in this market segment which includes names such as Nokia, Ericsson and China's Huawei, have been hit because of this slack in demand. There are also questions about the benefits that these companies can get from 5G contracts and when they would show economic gains for the companies in the industry segment.

Christopher J. Mitchell

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