Corporate strategy of Telefónica Deutschland

Vision: By 2022, we will be the "Mobile Customer & Digital Champion"

Digital technologies have long been an important and self-evident part of our everyday lives. They connect us humans and enable us to share experiences with each other. Telefónica Germany, as part of the Telefónica Group with 343 million customers worldwide, also enables these relationships between people with its products and services. In Germany, no network operator today connects more people. At Telefónica, we believe that it is people who give meaning to technology. That's why people are always at the heart of what we do. "We want to make our world more human by connecting lives.” That is our mission. The quality of these connections is our mission. By 2022, we want to become the "Mobile Customer & Digital Champion", that means the preferred partner of customers in the German mobile communications market. This is associated with a clear mission: We are making our customers' lives easier and better and give them mobile freedom in the digital world. In concrete terms, this means that we offer our customers a consistently positive experience with our brand, products, customer service and network.

Growth potential on the market

The trend towards more data usage and more devices opens up great growth opportunities for us. Currently, mobile data usage in Germany is growing exponentially. People are increasingly streaming music and videos on the go. However, compared to the rest of Europe, data usage in Germany is still in its infancy. Additionally, the number of devices and sensors that are connected to the network via mobile service will further increase. At the same time, large quantities of data are generated, the analysis of which creates significant added value for the economy and society. We want to shape these market developments and utilise the resulting growth potential.

Our strategy: we are reinforcing our foundation, digitalising our business and improving the customer experience in order to increase growth and profitability

We shall achieve our vision ("Mobile Customer & Digital Champion") by offering a customer experience that sets the standard in the industry. At the core, there are three strategic priorities: First, we are reinforcing the foundation: a strong network, excellent customer service, stable IT systems, an effective organisation, as well as appropriate regulatory framework conditions are the bases for a positive user experience and future growth. With digital technologies, we can make a special contribution to mastering social challenges and promoting sustainable development. At the same time, we are committed to ensuring that everyone has access to digital opportunities. This sense of responsibility is also an important part of our foundation. Our second priority is the improvement of the customer experience in the digital age. To this end, we have set up our transformation program "Digital4Growth". We will achieve a better customer experience through a product and service offering that is tailored to the customer and their daily life. Furthermore, we are extensively digitalising our company and adapt our ways of working in order to also improve the customer experience through those means. Thus, our customers will see us as simpler, faster and better. Simpler, because we make the interaction with our customers easier and more intuitive and enable a uniform experience across our channels. Faster, because we react to customer needs and market changes in real time. Better, because we provide a positive customer experience across all our channels and expand data-based growth fields. The successful implementation of our first two priorities leads to the third priority: We create new growth and positive development of our profitability. We therefore enable all of our stakeholders – employees, customers, and shareholders – to participate in our success. Through positive customer experience, we are stimulating revenue growth in order to grow with the German market and increase our profitability (OIBDA). We invest intelligently in our network as well as in the transformation, thereby keeping the volume of investment stable. The transformation into a digital company enables us to constantly increase efficiency, so that we can continuously reduce our operating costs. At the same time, we are tapping into new revenue potential, including the Internet of Things. The revenue growth supports the development of a solid free cash flow, so that we maintain an attractive dividend policy and remain a highly attractive investment for our shareholders.

Part of a global telecommunications company

Our strategy contributes to the strategic priorities of the globally active Telefónica Group. Telefónica Deutschland and the Telefónica Group both focus on the customer and the connection between people and technology, thus enabling profitable growth in a highly dynamic and attractive market.