Michael Soper, telecom analyst, TBR, said that thanks to the strong management of Nokia Networks CEO Rajeev Suri and the success of Alcatel-Lucent CEO Michel Combes, the merger has become feasible, with the prospect of the second-largest solutions supplier in the telecom industry emerging from the combination.
However, the move presents major risks for the firms, including merging cultures, portfolios and financial models fast enough to prevent competitors from gaining ground. Mergers — even the best managed — take 24 months or more. During this time, the new Nokia will be vulnerable.