Alcatel-Lucent combine gears up to sail out of troubled times

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: with clients as the company rethinks how it deploys its resources.

Thomas Langer, an analyst at WestLB in Dusseldorf, said the new team would quickly face pressure to bring results.

“My take is that there will be another round of reorganisation that will unfortunately come with more restructuring,” Langer said.

Alcatel-Lucent’s CDMA network business in the United States, which provides cellphone access, is declining rapidly as the code-division multiple access technology loses ground to networks based on GSM, or global system for mobile communications, and another standard called CDMA-A. Nonetheless, the CDMA business contributes a significant part of the company’s revenues.

The challenge for the company is to increase its share of the market for 3G networking equipment, Peterc said.

Though the company has not produced a quarterly profit since the merger,Russo stands to receive stock worth about 6 million euros tied to performance targets. Verwaayen will receive an annual base salary of 1.2 million euros, with the possibility of a performance bonus that would raise it to as much as 3.6 million euros.