Nokia has provided recast segment results for 2015 reflecting the company's new financial reporting and organizational structure, following the acquisition of Alcatel-Lucent. Nokia's organizational structure is intended to enable the company to create an innovation leader in next-generation technology and services. With state-of-the-art software, hardware and services for any type of network, Nokia is at the forefront of creating and licensing the technologies that are increasingly at the heart of our connected lives.
To support Nokia's strategic objectives and reflect the way the company evaluates operational performance and allocates resources, Nokia will revise its financial reporting structure. As of the first quarter 2016, Nokia will have three reportable segments: The (i) Ultra Broadband Networks and (ii) IP Networks and Applications reportable segments within Nokia's Networks business and the (iii) Nokia Technologies reportable segment within the Nokia Technologies business. In addition, Nokia will disclose segment-level data for Group Common and Other.
Ultra Broadband Networks is composed of the Mobile Networks and Fixed Networks business groups:
- The Mobile Networks business group offers an industry-leading portfolio of end-to-end mobile networking solutions comprising hardware, software and services for telecommunications operators, enterprises and related markets/verticals such as public safety and Internet of Things.
- The Fixed Networks business group provides copper and fiber access products, solutions, and services. The portfolio allows for a customized combination of technologies that brings fiber to the most economical point for the customer.
IP Networks and Applications are composed of the IP/Optical Networks and Applications & Analytics business groups:
- The IP/Optical Networks business group provides the key IP routing and optical transport systems, software and services to build high capacity network infrastructure for the internet and global connectivity.
- The Applications & Analytics business group offers software solutions spanning customer experience management, network operations and management, communications and collaboration, policy and charging, as well as Cloud, IoT, security, and analytics platforms that enable digital services providers and enterprises to accelerate innovation, monetize services, and optimize their customer experience.
The Nokia Technologies business group has two main objectives:
- To drive growth and renewal in its existing patent licensing business; and
- To build new businesses for Nokia, based on breakthrough innovation in key technologies and products, in the areas of Digital Media and Digital Health.
As of the first quarter 2016, the majority of net sales and the related costs and expenses attributable to licensing and patenting the separate patent portfolios of Nokia Technologies, Nokia's Networks business, and Bell Labs will be recorded in Nokia Technologies. Each reportable segment will continue to separately record its research and development expenses.
Group Common and Other: As of the first quarter 2016, Group Common and Other includes the Alcatel Submarine Networks and Radio Frequency Systems businesses, both of which are being managed as separate entities. In addition, Group Common and Other includes Bell Labs' operating expenses, as well as certain corporate-level and centrally-managed operating expenses.
