Nokia said on Friday it would break out services as a distinct
business group from mobile networks following the departure of
Samih Elhage, who joined the company in 2012 and helped to turn
around its network business at a time when it was a troubled
joint venture with Siemens <SIEGn.DE>.
Services were growing in importance because of the weak global
outlook, Nokia said. The global networks market is expected to
fall this year as telecom operators' demand for faster 4G mobile
broadband equipment has peaked, and upgrades to next-generation
5G equipment are still years away.
"He has been a close friend and advisor... I fully support his
desire for a change," Nokia chief executive Rajeev Suri said in
a statement detailing Elhage's departure and the changes.
These involve Marc Rouanne, currently Chief Innovation and
Operating Officer, becoming head of the mobile networks products
business while another Nokia veteran Igor Leprince will take
over the new service organization.
(Reporting by Jussi Rosendahl and Tuomas Forsell)
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