YOU ARE AT:EMEAKPN unveils strategy to save $329M per year

KPN unveils strategy to save $329M per year

Dutch telco KPN looks to launch VoLTE services this year

Dutch telecom operator KPN announced plans to save 300 million euro ($329 million) per year by 2019, under a new strategic plan covering the next three-to-five years. KPN said its existing strategic program is on track to realize 450 million euro in total savings per year through the end of this year, including operational and capital expenditures.

“The coming years will see relentless growth of connected devices and surging data traffic. To stay ahead, we are evolving our strategy to the next level,” explained KPN CEO Eelco Blok. “We will deliver a second wave of major business simplification, expand the capacity of our fully integrated network, and keep innovating to drive new products and give an excellent customer experience to all our customers at home, on the move and at work. Based on this strategy, we will maximize value for our shareholders and all other stakeholders while maintaining a solid financial profile.”

The European telco said the new strategy will allow it to expand consumer revenues supported by increasing fixed-mobile penetration and growing revenues per household. In the corporate segment, KPN is looking to become a “business ICT” service provider, which it said will result in improved profitability and stabilizing revenues.
Under the new strategic plan, which will become effective in 2017, KPN said savings will be made primarily through the simplification and rationalization of IT processes and systems, as well as network infrastructure.

During the firm’s capital markets day, it also announced plans to launch voice-over-LTE technology this year and voice over Wi-Fi in 2017. The telco also said that it expects to increase the speed of its LTE network to 375 megabits per second in the coming years. KPN currently offers LTE services in the Netherlands through spectrum in the 800 MHz, 1800 MHz and 2.6 GHz bands. The telco launched commercial LTE services in May 2012.

Tele2 selects Nokia for small cells deployment

Also in the Netherlands, local mobile operator Tele2 selected Nokia Networks for the deployment of small cell solutions. The operator said it’s looking to complement LTE macro base stations with small cells in outdoor hot spots and key indoor locations.

Nokia’s Flexi Zone solution has already been installed at Tele2’s new flagship store in Amsterdam, which is scheduled to open soon. Tele2 launched LTE services in 2012, and currently offers the services using spectrum in the 800 MHz and 2.6 GHz bands. Tele2 Netherlands ended 2015 with 844,000 mobile subscribers.

ABOUT AUTHOR

Juan Pedro Tomás
Juan Pedro Tomás
Juan Pedro covers Global Carriers and Global Enterprise IoT. Prior to RCR, Juan Pedro worked for Business News Americas, covering telecoms and IT news in the Latin American markets. He also worked for Telecompaper as their Regional Editor for Latin America and Asia/Pacific. Juan Pedro has also contributed to Latin Trade magazine as the publication's correspondent in Argentina and with political risk consultancy firm Exclusive Analysis, writing reports and providing political and economic information from certain Latin American markets. He has a degree in International Relations and a master in Journalism and is married with two kids.