KPN Strategy 2011 -2015
On 10 May 2011, KPN presented its new strategy, the successor to ‘Back to growth’. In the coming years until 2015 KPN aims to strengthen, simplify and grow their businesses. This means that everything is oriented to improving quality, service and technology so as to become the best service provider and strengthen its market position in the Netherlands. Internationally the focus will be on further growth in revenues and profitability.
The continual changes in the telecom and IT sector are the driving force behind KPN’s new strategy. The KPN infrastructure is of vital importance if the strategy is to succeed. Within its fixed network KPN is making further investments in upgrading copper (VDSL), and in the long term KPN aims to distinguish itself from its competitors through the use of fiber. KPN is improving the quality and capacity of its mobile networks, ramping up the average speed still further. In this way KPN is anticipating the changing ‘mobile customer behavior’, with speech continuing to make way for data.
In the broadband market everything revolves around triple play (internet, telephony and television). KPN is improving its television product in response to the ever growing demand for interactive functionalities such as multi-screen, WebTV and HD technology. To bring the service to an even higher level, KPN will increase the number of its stores in the Netherlands from 220 to around 300. Call centers are to be organized differently and specialist agents will solve customers’ problems in one go.
The mobile market that is dominated to an ever increasing extent by smartphones and tablets requires a different approach. In this area, KPN is anticipating an explosive growth in data traffic. A change in the relative importance of data and voice/SMS has an influence on the composition of the mobile subscriptions. KPN is responding to the sharp growth in the use of smartphones and tablets through multiple SIM cards. Additionally, KPN will make mobile television technically possible in the foreseeable future.
With regard to the business market KPN wants to play a leading role in Benelux. This is why KPN continues to invest in the quality of its services, infrastructure and data centers in the business market. The mobile portfolio is being simplified, in line with the customer’s wishes. Fixed and mobile are being brought closer together and KPN’s online service is being improved, as are its Business Centers.
In the large corporate sector KPN is responding to the increasing customer demand for integrated IT services, flexible workspaces, cloud computing and videoconferencing. For this purpose Getronics in the Netherlands will ultimately be integrated in its entirety into the KPN organization. In the countries outside Benelux, Getronics is maintaining its present course. KPN will also focus increasingly on small businesses and home offices.
In the period from 2011 to 2015 KPN will simplify its organization: fewer management tiers, greater efficiency and more direct control. In order to concentrate more than ever on service provision KPN is outsourcing back-office processes to specialist companies. This ensures that costs can be lowered and that quality can be improved, resulting in a reduction of four to five thousand jobs in the strategy period.
In Germany KPN is pursuing its successful Challenger strategy, thereby responding to the rising popularity of mobile internet. KPN is using the frequency space it acquired in 2010 to meet the demand for mobile data services. The accelerated roll-out of a mobile broadband network on a regional basis has started as well. KPN continues to invest in high-quality mobile services, including internet. KPN aims to increase its market share in Germany from 16% to more than 20%.
In Belgium too, KPN wants to increase its market share from 18% to 20-25%. As in Germany, KPN is accelerating the roll-out of a mobile broadband network in Belgium and internet services are being offered via strong in-house brands and partner brands.
KPN sees clear growth opportunities for Ortel Mobile. The changing demographic composition of Europe makes it possible for Ortel Mobile to operate in new markets outside the existing regions. It is KPN’s aim to increase Ortel Mobile’s sales significantly.
As for iBasis – a top-five player in the international telephone services sector – KPN aims to continue growing and creating value in the long term.