Sweden-based operator Tele2 said its top priority was to offer customers less for more in 2012 as it announced revenue and profit increases for the previous quarter.

Sales between October and December 2011 rose eight percent year-on-year to €1.2 billion, while operating profit grew to €181 million.

The company also saw full-year revenues increase to €4.6 billion, up from €4.5 billion in 2010.

“Today’s results show the strength of Tele2 … we are still operating in a context of macroeconomic uncertainty,” commented president and CEO Mats Granryd (pictured).

The only blemish was a less that one percent fall in operating profit for 2011 to €790 million.

Mobile sales in Sweden and Russia were behind the company’s growth. Tele2 is growing rapidly in Russia and added more than two million customers in 2011 out of 2.8 million for the group as a whole.

“As the Russian market matures, we intend to shift our focus from volume to value,” commented Granryd.

It is also rolling out 4G in its homeland and “evaluating the potential” of a 4G network in the Netherlands where it has just shy of a million customers.

“The regulatory and market environments [in the Netherlands] seem favourable for a value driven telecom competitor,” added Granryd.

However, it is the company’s explicit focus on what it calls its “two unique assets” – the network and customer relations – that offers the most cause for optimism.

As European Communications is reporting in the upcoming Q1 issue, operators must afford customer service the same level of importance as the network – and it must come from the top.

It is therefore pleasing to read Granryd’s following comments: “In tomorrow’s connected world, seamless access at high speed will be essential: the successful operators will manage the shift from voice to data while offering world-class connectivity, a high-quality network, transparent and simple tariffs and flawless service with efficient communication.”

Nevertheless, challenges do remain. Fixed broadband and telephony registered falls both in numbers and revenues, for example.

The number of fixed broadband customers fell by 17,000 in Q4 and it remains to be seen whether the company really has the scale and desire to make a success in this highly competitive segment.

If capex trends are anything to go by, the company may have already decided. Mobile operations saw a 68 percent y-o-y capex rise in 2011, while fixed broadband registered a fall of 11 percent.

As Granryd also noted, end users are becoming ever more demanding: “The price awareness and value expectations of our customers are constantly increasing.”

If you are not fully committed to delivering a best-in-class service, you will be quickly found out.

Nevertheless, Tele2 is right to look ahead with a sense of anticipation and turning those figures into a full-year profit will be a key goal in the 12 months ahead.

More Features

Q&A: Carlotta Ventura, Telecom Italia’s Brand Strategy and Media Director Q&A: Carlotta Ventura, Telecom Italia’s Brand Strategy and Media Director Carlotta Ventura, Telecom Italia’s Brand Strategy and Media Director, discusses the operator’s rebranding More detail
Opinion: Marketing technology investment crucial for driving business growth Opinion: Marketing technology investment crucial for driving business growth By Volker Wiewer, VP International (EMEA+APJ), Teradata Applications From retail and telecommunications, to financial services and travel, success for brands today comes from being able to show the customer... More detail
Q&A: FreedomPop CEO and Founder Stephen Stokols Q&A: FreedomPop CEO and Founder Stephen Stokols Stephen Stokols is CEO and Founder of FreedomPop, a US-based MVNO that offers free mobile services, including mobile data, text and voice services. More detail
Retailers go shopping for M2M as Vodafone claims it retains big advantage Retailers go shopping for M2M as Vodafone claims it retains big advantage Retail is becoming the fastest growing area within the M2M/IoT space, as businesses look beyond sweating supply chains, new research from Vodafone has claimed. More detail
Opinion: Operators need to strike right balance between OTT partnerships and in-house R&D Opinion: Operators need to strike right balance between OTT partnerships and in-house R&D By Adrian Baschnonga, Lead Analyst, Global Telecommunications, EY The OTT phenomenon continues to drive debate in the telecommunications industry and beyond, with regulatory perspectives, operator strategies... More detail
    

This website uses cookies to improve your experience. Using our website, you agree to our use of cookies

Learn more

I understand

About cookies

This website uses cookies. By using this website and agreeing to this policy, you consent to SJP Business Media's use of cookies in accordance with the terms of this policy.

Cookies are files sent by web servers to web browsers, and stored by the web browsers.

The information is then sent back to the server each time the browser requests a page from the server. This enables a web server to identify and track web browsers.

There are two main kinds of cookies: session cookies and persistent cookies. Session cookies are deleted from your computer when you close your browser, whereas persistent cookies remain stored on your computer until deleted, or until they reach their expiry date.

Refusing cookies

Most browsers allow you to refuse to accept cookies.

In Internet Explorer, you can refuse all cookies by clicking “Tools”, “Internet Options”, “Privacy”, and selecting “Block all cookies” using the sliding selector.

In Firefox, you can adjust your cookies settings by clicking “Tools”, “Options” and “Privacy”.

Blocking cookies will have a negative impact upon the usability of some websites.

Credit

This document was created using a Contractology template available at http://www.freenetlaw.com.

Other Categories in Features