Verizon Creates New Corporate Operating Structure, Hires Former Ericsson CEO To Lead Network Business

Verizon is restructuring to focus on three areas; Media and Telematics, Network and Technology, and Customer and Product Operations, the telecommunications giant said Friday.

The company also said it has hired former Ericsson CEO Hans Vestberg to head up the Network and Technology operations.

Continuing to report to CEO Lowell McAdam is Marni Walden as executive vice president for Media and Telematics, and John Stratton as executive vice president for Customer and Product Operations.

[Related: Verizon Restructures Small Business Segment, Launches Verizon Business Markets ]

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Verizon, in a statement, said the changes and new corporate organization are designed to "better serve rapidly changing customer needs and accelerate the deployment of next-generation technology."

"This new structure is designed to accelerate our progress toward delivering the promise of the digital world to customers," McAdam said in the statement. "It will give us greater organizational agility to continue to lead the market with our wireless and fiber services, scale and expand our media and telematics businesses, and maintain the leadership in network reliability and new technology that is a Verizon trademark."

Verizon's Network and Technology organization will manage the company's network assets, including developing the architecture for its fiber-centric networks, and providing Wi-Fi, fiber, 4G, 5G and other network services. The organization will be responsible for Verizon's residential fiber network, global internet backbone, and undersea cable network. It also includes the fiber network assets from Verizon's recent acquisition of XO Communications.

The Media and Telematics organization, overseen by Walden, will be responsible for "integrating, scaling and growing" Verizon's portfolio of new business in digital media and telematics. That includes AOL, which Verizon acquired in 2015, and Yahoo, which Verizon is in the process of buying for $4.48 billion. Verizon's telematics businesses, offering connected car and fleet management technologies and services, is made up of Verizon's Hughes Telematics, Fleetmatics and Telogis acquisitions.

Once the Yahoo deal closes, Media and Telematics will have 1.3 billion digital media users and generate $7 billion in annual revenue, according to Verizon.

The Customer and Product Operations organization will operate and grow Verizon's established businesses, including Verizon Wireless, Verizon Enterprise Solutions, Verizon Partner Solutions, Verizon Consumer Markets and Verizon Business Markets. Verizon said those businesses serve more than 120 million customers and generate more than $120 billion in annual revenue.

Stratton will be charged with growing those core businesses "while accelerating Verizon's shift toward a digital-first model," the company said. Stratton will also lead operations and sales for Internet of Things products and services.