The company has converged two of its three CDMA platforms since the start of the year, and expects to merge the remaining two by the third quarter of next year, Russo said. Going forward, it will focus research and development spending on new revenue opportunities such as the transformation of wireless networks to all-IP systems.
As part of its restructuring, the company will eliminate a layer of management, merging the wireless, wireline, and convergence networks divisions of the carrier networks business segment.
Services revenue remained flat at €777 million, while operating profit in that sector fell to €40 million from €60 million a year earlier. The company sees services around the delivery of IPTV (Internet Protocol television) programming as a strong area.
One bright spot was the company's enterprise networks business, where revenue rose to €380 million from €362 million a year earlier, with operating profit rising to €29 million from €24 million a year earlier. The move by businesses from traditional switched telephone systems to VoIP on internal networks was a key driver, the company said.
This article was updated with new information on Oct. 31, 2007.