Danish operator TDC has presented a new strategy for the group from 2016 to 2018, based on customer satisfaction and cash flow generation. It said its guiding principle is ‘Always Simpler and Better’. It aims to differentiate itself in a competitive market by focusing on three things.
First, it intends to provide better connectivity with the best speed, quality and coverage by uniting the group’s “unique” assets. Second, it aims to offer better products and entertainment by delivering relevant products both today and tomorrow. Third, it plans to supply better customer services, driven by the best customer insights and digitisation, which will reduce organisational complexity and deliver opex efficiency savings.
To provide better connectivity, TDC will use its 4G mobile network, accelerate the upgrade and future-proofing of its coaxial cable network to market-leading 1 Gigabit speeds and deliver optimal connectivity irrespective of network type. In Norway, Get will move towards offering its own 1 Gbps services and expand its coax cable footprint into attractive new local markets which currently do not have access to Get's service proposition.
To deliver better products, TDC Group will unify its premium consumer household offerings by merging TDC and YouSee, with YouSee as the continuing brand. From 01 July 2016, TDC will no longer be in use as a Danish consumer market brand. The integration will combine IT platforms and backhaul, and will merge channels, go-to-market-strategy and branding.
Because of the brands merger, Michael Moyell Juul, Head of Online Brands, is being released from his additional responsibility as acting Head of Household Brands, and will be replaced in that role temporarily by Rene Brochner until a new head of that business line is found.
In Norway, Get will be launching MVNO services during 2016, allowing it to offer a triple-play bundle. In future it will enter developing areas such as Smart Home services.
Within Business, it will simplify its operating model and reduce complexity, with more standardised products and a more clearly defined customer proposition. In the SMB segment, a radically different go-to-market model will enable more effective selling of products such as enhanced unified communications. In Enterprise, the focus will be on standardised off-the-shelf products, as well as a new incentive structure that will favour focus on gross profit over sales. Looking ahead, new revenue streams will be developed in areas of IT security and location-based commerce.
Turning to customer service, TDC Group will use enhanced customer insights to shape its product development efforts and increase the share of customers utilising online and digital self-service tools. The aims is substantially to reduce churn, increase customer loyalty and cross-sell / up-sell opportunities, and improve customer satisfaction/ In Norway, Get will be rolling out its own 24/7 e-customer service and moving to 100 percent digital interaction in all of its channels.
TDC said it is conducting a strategic review of TDC Sweden that may or may not lead to its disposal. Meanwhile, it has ended the review of TDC Hosting that it announced on 13 April 2015 and has decided that the best way of maximising long-term shareholder value is to continue owning it, as an independent unit.
