TeliaSonera, a Sweden-headquartered operator with fixed and mobile operations in the Nordics and Eurasia, said it will top up capital expenditure to the tune of SEK6-7 billion ($830-$965 million) in an attempt to increase market share in mobile data, 4G and fibre access.
The operator disclosed its new spending plans, which come into effect in 2015-16, ahead of its capital markets day (30 September).
Of the extra spending, SEK4–5 billion will be allocated towards accelerating fibre rollout in Sweden, new B2B offerings, as well as upgrading data networks in Eurasia, a region where TeliaSonera has struggled.
While data share of service revenue averages out at over 30 per cent in the Nordic countries where TeliaSonera has a presence, it is under 15 per cent in Eurasia.
TeliaSonera said it would also increase 4G coverage and capacity in “core markets” and push more on bundling fixed and mobile services since they help lower churn.
M2M is seen as another promising growth area. From revenue of SEK300 million in 2014 the operator reckons M2M sales will increase more than fourfold to over SEK1 billion by 2018 as the firm develops more tailored solutions for various industry sectors. The operator highlights automotive, consumer gadgets, health and buildings.
TeliaSonera is also spending an extra SEK2 billion to cut costs with the aim of achieving net savings with a yearly run rate of SEK2 billion during 2017.
“Today we announce that TeliaSonera will invest to grow in our core business in the Nordics and Baltics, in taking Eurasia to the next level on the back of increased demand for mobile internet, and in areas that complement and strengthen our core business,” declared Johan Dennelind, TeliaSonera’s chief executive. “In addition we will invest to save, increasing simplicity and thereby increase our overall competitiveness.”
To try and placate shareholders during the process of ‘business transformation’, the operator pledged to pay a dividend for the coming two years of at least last year’s level.