KPN plans to eventually eliminate its subsidiary brands and focus on the KPN brand and bundled services for Dutch households and companies. No time frame has yet been announced. A spokesperson for the company said KPN plans over the coming two years to take up the popular elements of its second brands into its main KPN offering. It will then look per brand to see if it should be eliminated, and when.
The changes are expected to affect consumer brands Telfort and XS4ALL and business brands Telfort Zakelijk and Yes Telecom. Mobile unit Simyo and FTTH brand Solcom were not mentioned. Nothing is expected to change for customers.
KPN intends to boost its own brand this year and next with the characteristics of these subsidiary brands. It will in April start providing extra benefits for consumers who combine Telfort and KPN products. The spokesperson declined to say if KPN and its secondary units would come with a combined offering.
The company and the spokesperson said the brand changes will help achieve the company goal to become the “undisputed quality provider with the best services, customer service and networks.” The move will also help the company focus on fixed mobile convergence. The spokesperson noted that customers don't always realise that Telfort Mobile and KPN Home use the same infrastructure. This will be more easily conveyed if there is only one brand.
Customer numbers
KPN declined to give customer numbers per brand. Telecompaper has estimates, in its fixed and mobile reports. According to these, for mobile, Telfort (consumer and business) has 1.53 million, XS4ALL 64,000 (data only) and Yes Telecom 170,000. For Broadband, Telfort has 604,000 customers and XS4ALL 210,000.
The NPS/WoM scores of Telfort and KPN are close. XS4ALL has better scores.
Best elements from the separate brands
"With the focus on the KPN brand, we are going to expand KPN services with the best elements of the individual brands, such as XS4ALL's highest-rated service, Telfort's affordable benefit services and personal service and expert business advice from Yes Telecom," KPN head of consumer market Jean-Pascal Van Overbeke said. "This will enable us to offer consumers and businesses an even better user experience with leading combinations of fixed and mobile services," he added.
Strategic changes
KPN is with new CEO Maximo Ibarra moving forward with the simplification of its operations. Under predecessor Eelco Blok, this meant a focus on the Dutch market, with the sale of mobile subsidiaries E-Plus (Germany) and Base (Belgium). Ibarra now wants to make KPN an all-for-everyone brand.
Telecompaper learned last year from various sources that Ibarra hired McKinsey for its restructuring, with likely further cost savings as a result. With the end of its four subsidiary brands, marketing costs will be saved.
Top management has also been shaken up. KPN implemented changes in August, October and November 2018. This led, among other things, to the departure of CCO Frank Post, whose position was divided. Joost Farwerck (COO) received extra tasks in November and Van Overbeke was hired to lead the consumer business.
