Nokia Execs Dominate JV's Top Table
On Monday, Nokia's Olli-Pekka Kallasvuo was named as chairman of the JV, while Simon Beresford-Wylie, currently head of Nokia's networks unit, was named its CEO. Today, Mika Vehviläinen, currently Nokia's senior VP and general manager, Core Networks, was named as the new company's Chief Operating Officer. (See Nokia, Siemens Name Execs.)
Vehviläinen will be responsible for a number of business units: Radio Access; Operation Support Systems; Service Core and Applications; IP Networking and Transport; and Broadband Access. He will also oversee Operations (sourcing, manufacturing, and logistics) and the Technology Platforms and Quality organization.
Peter Schönhofer, currently a member of the executive board of Siemens AG Austria, was named as CFO on Monday, while Karl-Christoph Caselitz, currently president of Mobile Networks at Siemens Communications Group , will be the Chief Market Operations Officer.
Caselitz will be responsible for the Services business unit of the JV, identified as a major part of the new business, as well as regional operations, management of global accounts, and marketing and sales management. According to Nokia and Siemens, their combined revenues from services provided to carriers totaled more than €4.4 billion ($5.6 billion) in calendar 2005 from total revenues of €15.8 billion (US$19.9 billion). (See There's a New Bully on the Block.)
It was also announced Monday that Nokia Siemens Networks will have its operational headquarters in Helsinki, while Munich will house a "strong regional headquarters."
Beresford-Wylie stated on Monday that the management team was being chosen purely on suitability for the roles. In that respect, having Nokia's Vehviläinen in charge of fixed line units such as broadband access may seem strange, as the JV's fixed line portfolio comes almost exclusively from Siemens.
Observers might also question the lack of a dedicated chief technology officer (CTO) position. The CTO role "will be covered by the COO, Mika Vehviläinen," says a Siemens spokeswoman, and no further senior management will be appointed. "This is the board," she states.
That also means there's no room on the Nokia Siemens Networks top table for the three current individuals running the telecom operations of Siemens Communications -- CEO Eduardo Montes, CFO Karl-Heinz Seibert, and Thorsten Heins, who is CTO and has responsibility for Asia/Pacific.
The Siemens spokeswoman says the trio will retain their positions at Siemens Comm until the joint venture starts business -– due January 1, 2007 -– but that it's too early to say what their roles will be after that date.
— Ray Le Maistre, International News Editor, Light Reading