Strategy

EMPOWERING DIGITAL LIFE

The A1 Telekom Austria Group’s vision ‘Empowering Digital Life’ also shows that the Group has more to offer than just ‘traditional’ telecommunication services. Its self-perception goes far beyond the provision of infrastructure, connectivity and bandwidth. It sees itself as a pioneer and driver of digitalisation with the expertise to create and maintain digital business models and solutions from concept to operation.


A1 TELEKOM AUSTRIA GROUP’S STRATEGY

For these reasons, digitalisation plays a significant part in the A1 Telekom Austria Group’s strategic focus, which consists of three core elements: Excel in the core business, expand the portfolio, targeted M&A. Cost and CAPEX efficiency form the basis for all strategic decisions. In the context of its growth strategy, the Group is relying not only on its leading role in the CEE region, but also on the strength of one of the largest telecommunications providers in the world, as part of América Móvil, with around 280 million customers in the mobile segment alone.

A1 Telekom Austria Group’s Strategy
A1 Telekom Austria Group’s Strategy

EXCEL IN THE CORE BUSINESS

The A1 Telekom Austria Group is focusing on intensifying sales and targeted cross- and upselling activities in order to optimise its core business. This involves the key objective of gaining households which are already covered as customers and thereby optimising the ratio of households that are covered and those already connected. Convergence is another important starting point. In addition to Austria, Bulgaria, Croatia, Slovenia and the Republic of Macedonia, the Group is now offering fixed-line and mobile services in Belarus. Infrastructure leadership remains a key differentiation factor against competition.

 

EXPAND THE PORTFOLIO

Standing out from the competition is crucial. This requires the courage to be innovative and creative. This is why the A1 Telekom Austria Group’s objective is to become the first point of contact and key partner for the digital transformation of companies in order to unlock new potential in digital services, such as cloud and ICT solutions. Telecommunications solutions are encompassing an increasing number of areas of life, which is a trend that the Group is making use of in the residential business. It is increasingly focusing on solutions for entire households and covering all customer requirements with convergent product bundles that include, for instance, TV and music streaming services or cloud solutions.

 

TARGETED M&A

In addition to measures to generate organic growth, the A1 Telekom Austria Group will also continue to grow via targeted and value-accretive acquisitions. The Group is focusing mainly on the existing markets as well as the pursuit of its convergence strategy and subsequently on tapping into new markets. In the year under review, the Belarusian subsidiary velcom became a convergent operator following the acquisition of the fixed-line operator Atlant Telecom and its subsidiary TeleSet. In Croatia, the acquisition of Metronet strengthened the fixed-line position, especially in the business segment (for more details, see chapter ‘Market development and operating milestones’).

 

EXCELLENCE IN EXECUTION – IMPROVED COST AND INVESTMENT EFFICIENCY

In order to have financial flexibility for investments, operating excellence is crucial when implementing the Group strategy. All structures, processes and investment decisions are therefore reviewed and called into question on an ongoing basis. Marginal improvements lead to an increase in efficiency. We regularly challenge our way of thinking and working. The A1 Telekom Austria Group has set itself the goal of becoming more efficient every single day. 

 

GUIDING PRINCIPLES

The implementation of the A1 Telekom Austria Group’s strategy within the company is built on the guiding principles incorporated in the corporate culture. ‘Team’, ‘Trust’ and ‘Agility’ are key values that are ultimately aimed at providing a premium end-to-end experience for customers (for more details, see chapter ‘Employees’).