Broadband shake-up for Motorola

Motorola has announced an overhaul of its broadband division, splitting its IP and entertainment systems into two separate sectors. The move follows the realignment of the company's corporate divisions as it strives to tighten its infrastructure.

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By  James Thornton Published  February 2, 2001

Motorola is continuing to restructure its services, announcing that it is to split its broadband sector in half. Under the shake-up, Motorola’s Broadband Communications Sector will be divided into two groups, one for entertainment and one for IP systems.

The move will see the IP Systems unit focus on selling cable modems and Hybrid Fibre Coax products, whereas the Entertainment Systems Group will concentrate on marketing a range of products and solutions for satellite and broadcast companies.

The broadband restructure follows a wider plan announced at the start of January when Motorola decided to create three separate top-level divisions in an effort to tighten the company’s sprawling corporate structure.

The Broadband Communications Sector became part of a new stand-alone organization known as the Networks Sector. This also encompassed the Global Telecom Solutions Sector (GTSS) and the Commercial Governement and Industrial Solutions Sector (CGISS).

One of the major aims of the shake-up was to give the company’s Personal Communications Sector (PCS) greater independence and be more responsive to the consumer market. The restructure also hailed the death of Motorola Communications Enterprise (CE), which was set up in 1998 to bring all the company’s communications-related businesses together.

CE was ditched after a poor performance from the personal communications division had heavily impacted on Motorola’s third quarter 2000 results. Under the new corporate infrastructure, PCS now operates much closer to the top of the scale and its president Mike Zafirovski will report directly to Motorola’s president, Robert Growney.

The third stand-alone division set up by Motorola was Global Customer Solutions Operations (GCSO), designed to look after global solutions for the company’s multinational corporate customers.

The reshuffling of its broadband sector is being seen as a logical progression in Motorola’s overhaul of its corporate divisions. The company’s CEO Christopher Galvin believes the restructure will signal “a new breed of company leadership dedicated to a focus on the outside world.”

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