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KPN aims to save €350m through new strategic plan


KPN is aiming to expand its FttH footprint by one million by the end of 2021 and make its network infrastructure 5G ready as part of a new strategic plan aimed at cutting opex by €350 million.

In a presentation this morning, CEO Maximo Ibarra identified three strands that will be central to its future success.

In addition to building future proof infrastructure and pushing heavily on fibre, it will target increasing its number of converged households by 300,000 and converged contract base to 70 percent by 2021. On its enterprise arm, the operator will simplify and digitise its product portfolio, increase the number of converged connectivity services it offers and "selectively" grow in IT.

Finally, it will speed up its internal digital transformation, using the inevitable buzzwords of "making the company lean, faster and more agile".

It launched a Simplification program in 2014 and said it has led to €650 million in savings by the end of September this year. It said this program will be incorporated into a new multi-year project launching next year.

By shifting to a lean operating model through simplification, automation and digitalisation of IT platforms and systems, the operator said it is aiming to save €350 million in operating expenses by the end of 2021.

It will also set a ceiling for its capital expenditure at €1.1 billion.

Maximo Ibarra, CEO of KPN, said: "In recent years KPN has made good progress driving improved service quality, better customer satisfaction and material structural spend savings, building a stronger company.

"Yet our evolving landscape requires us to become more flexible, improve our time to market and bring innovation to our customers faster than ever. We are therefore accelerating the execution of our strategy, positioning KPN as a future-proof and lean telco with premium Consumer and Business customer relations.

"We are at the very heart of our customers' connected life and we want to be their trusted companion offering best-in-class quality in terms of access, service and customer experience."