I have outlined below the organization of the Carrier Business Group under the leadership of Michel Rahier.

This organization alignment is in line with the company objective to simplify our business and operating model, dedicating the necessary focus and driving accountability per our different lines of business, maximizing global results for Alcatel-Lucent for the years to come.

More specifically, effective immediately, the Carrier Business Group will be organized along the following principles:

Business Divisions:

• Seven fully empowered operating Business Divisions (BDs), one per broad technology segment with worldwide Profit & Loss accountability.

Regional Support Centers:

• A Regional Support Center (RSC) per BD for each Region, as the default model for our Carrier BG, providing dedicated high-level technical expertise per domain of activity to the sales forces and program deployment teams. The RSC per BD model may, in a limited number of cases, require adjustment at times to suit the specific requirements of a given Region.

Global Functions

• A Global Supply Chain dedicated to the Carrier BG and a Procurement function supporting the entire ALU business; and
• A thin Carrier level support infrastructure

A description of each function is outlined below:

Business Divisions:

• Applications BD combining IMS, Business and MultiMedia Applications.
• CDMA Networks BD including all CDMA access and core activities. 
• Fixed Access BD including all broadband fixed access business along with all our video middleware and video networking activities
• IP BD comprising all our IP and data products
• Mobile Access BD regrouping all radio access business (except CDMA):  GSM, WiMax, WCDMA and LTE.
• Multicore BD focusing on fixed and mobile next-generation networks (NGN) as well as existing fixed legacy business
• Optics BD covering the full range of optical transport networking portfolio including wireless and submarine cable transmission

Global Functions:

• Supply Chain including industrial and logistics activities
• Procurement and Sourcing supporting the entire Alcatel-Lucent portfolio.
• A Carrier portfolio strategy function to anticipate market and technology evolution in our global Carrier network strategy and to optimally leverage our wireless, wireline and convergence assets across the Carrier product portfolio
• A dedicated Wireless Networks function with responsibility to ensure that all mobility related activities are aligned to accelerate the development of next generation wireless networks and to leverage our mobile installed base worldwide.  This function directly oversees the activities of the CDMA Networks and Mobile Access Divisions as well as the activities of the Radio Frequency Systems (RFS) unit.  It provides direction on wireless product roadmap across the Carrier BG. This enables us to credibly present our strategy and commitment to customers regarding their evolution path to 4G.
• A Solution Marketing & Communications function providing global messaging for the Carrier portfolio, focusing on cross-BD solutions, and working closely with the product marketing functions in the BDs.  This team further manages all internal and external communications matters for the Carrier BG.
• A Common Platform and Business Process function to ensure the optimum level of commonality and re-use across the BDs.  This team also drives our efficiency improvement efforts across the Carrier BG with focus on product quality and key business processes and acts as the main interface with Corporate CTO.
• A Human Resources and Management Control functions.

Appointments

In line with these organization principles, the following appointments are confirmed effective immediately.

Business Divisions:

• Applications: John Leonard
• CDMA Networks: Mike Iandolo
• Fixed Access: Louis Martinez Amago
• IP: Basil Alwan
• Mobile Access: Philippe Keryer
• Multicore: David Geary
• Optics: Romano Valussi

Global Functions:

• Solution Marketing  & Communications: Jerome Albert (reporting to Corporate Communications for communications)
• Portfolio Strategy: Basil Alwan
• Wireless Networks: Mary Chan
• Procurement and Sourcing: Jean-David Calvet
• Supply Chain:  Mike Jones
• Common Platforms & Business Processes: Scott Nelson
• Management Control: Anit Jain (reporting to Corporate Finance)  
• Human Resources: Nicole Gionet

All leaders named above are members of the Carrier BG management team.

Marc Rouanne and Martin Lehnich will support the Carrier Management Team during the transition process.  Their new roles will be announced separately.

The next layer of management announcements within each BD and the Carrier Global Functions will follow shortly.

Pat Russo