The Mobile Advertising Cafe

Monday, January 15, 2007

E-Plus Youth Brand - Wireless/News

E-Plus plans youth brand, more shops, less management:

* September 27th, 2006
* 2:00 pm

German mobile operator E-Plus has launched its action plan called Be best challenger, including a focus on voice, SMS and price and a continuation of its multi-brands strategy. As part of the action plan, E-Plus will launch a youth brand in the second half of this year and invest in its network to increase voice capacity and indoor coverage where customer demand is for fixed-mobile convergence. In a presentation of the strategy, CEO Michael Krammer said that the company will not invest in mobile TV services because the EBITDA margin is almost three times lower than the mobile voice EBITDA margin.

E-Plus will also cut 40 percent of its current management jobs to 92 managers to increase the speed of decision-making and increase management productivity by 25 percent. The operator wants to reduce the FTE headcount by 10 percent or 300 FTEs from 2,900 to 2,600 and increase the number of customer-facing FTEs from 58 percent to 70 percent. To reach this goal, E-Plus wants to outsource network operations and certain back-office operations plus increase the number of own shops from the current 183, plus start opening more partner-franchise shops. The distribution channel increase will also lower the customer acquisition costs, increasing the profitability "

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