Company Trend Analysis - Telia's Enhanced Enterprise Strategy A Response To Tough Competition - MAY 2017
BMI View: E nhanced enterprise-facing services will drive Telia ' s customer upsell ing strategy in the medium term . However, the operator will continue to face long term competitive threats from rival Tele2 that is making similar moves in the relatively small enterprise segment.
Telia Lietuva has begun offering hybrid broadband internet and cloud computing offerings to the enterprise market. Following the consolidation of its wireline ( TEO), mobile ( Omnitel) and IT ( Baltic Data Center) operations, Telia is enhancing its enterprise-facing offerings with the aim of adding momentum to its customer up-selling strategy within the enterprise segment. We expect this will be a positive for the operator's customer deepening strategy. However, we believe rival Tele2 will pose an increasingly threat over the longer term.
For Telia, a hybrid internet offering leveraging xDSL technology combined with an LTE router (which ensures broadband access even in areas where the operator does not have a fibre network) will broaden the pool of enterprise customers to whom Telia can market its broadband products. A wider addressable market will increase the chances of the operator achieving scale in its enterprise broadband business and subsequently growing its overall business solutions revenues from their current modest levels.
|New Services Essential In Growing Enterprise Revenues|
|Telia Lietuva: Business Solution Revenues (SEKmn)|
|Soure: Telia, BMI.|