Tele2 unveiled a new strategy designed to “strengthen the organisation further and enable it to continue to challenge the industry”, as well as updating on its LTE plans in the Netherlands and Baltic markets.
The company said it will “focus on productivity increases by taking a holistic look at the organisation”. This includes “simplifying the way Tele2 interacts with customers” and “consolidating and transforming the organisation to work even smarter and better”.
It did not reveal if job cuts form part of the effort.
The “Challenger Program” will require investments of SEK1 billion ($133 million) across three years. Initially, the benefits will be seen at a slower pace, before achieving a full run rate of SEK1 billion between years three and four.
“Our business is growing and we have successfully spearheaded the transition into a data-centric business model. That puts us in a position of strength compared to the rest of the industry. That is why we do this now, as we have the opportunity to invest and fully prepare for the future by the launch of our new strategy and The Challenger Program,” said Mats Granryd, president and CEO.
Tele2 said that in the Netherlands, it will switch on its first 4G “network clusters” in a matter of weeks, “stretching from Rotterdam to Amsterdam”, continuing at a pace that “ensures the best possible user experience for customers”. By the end of March 2016, it expects to have achieved nationwide coverage.
It said that its lack of “costly 2G or 3G networks”, alongside a site sharing agreement with T-Mobile, and the “relatively small” investment it made in its licence, will lead to “a substantial cost improvement compared to the existing MVNO set-up”.
Tele2 also said it plans to hit 90 per cent LTE coverage in the Baltic states by the end of 2015, having recently completed a €50 million network modernisation project in the region.
It noted it has “the full spectrum portfolio necessary for LTE development – 800MHz, 900MHz, 1.8GHz and 2.1GHz in all the states, together with 450MHz and 2.3GHz in Estonia, and 2.6GHz in Latvia and Lithuania”.
Tele2 is currently in the process of selling its Norwegian operation to TeliaSonera, although this deal has yet to see the regulatory green-light.