Corporate strategy of Telefónica Deutschland

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

No network operator in Germany currently connects more people with mobile service. Our customers are our largest potential for new growth. After the O2 and E-Plus integration years, we want to focus on customer benefits and have set ourselves a clear goal: by 2022, we want to be "Mobile Customer & Digital Champion", meaning the preferred partner of customers in the German mobile service market. With this comes a clear task: we make our customers’ lives easier and better and provide them with mobile freedom in the digital world. Specifically, this means that we offer our customers a thoroughly positive experience with the brand, the products, the customer service, and the 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 ensure 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. 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 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 third priority results from the successful implementation of our first two priorities: We create new growth and ensure the positive development of our profitability. We therefore enable all of our stakeholders – employees, customers, and shareholders – to fully participate in our success. Through positive customer experience, we are stimulating revenue growth in order to grow with the German market and ensure the positive development of our profitability (OIBDA). We invest intelligently in our network as well as in the transformation, thereby keeping the CAPEX 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 also keep our dividend promises and remain a highly attractive investment for our shareholders.