Tele2 Russia

Tele2 subscribers spend less than others on mobile services

24 April 2015

Moscow – Tele2, an alternative mobile operator, has exhibited lowest APPM − RUB0.9 − among Russian mobile companies in 2014.

Over several yearsTele2 has been a leader in terms of APPM indicator. As of the end of 2014, the company once again turned out to be a mobile operator with the most profitable tariffs and the lowest average price per minute – RUB0.9. Tele2 is planning to follow the discounter model in 2015 by maintaining leadership in terms of this indicator.

Tele2 manages to provide mobile services at affordable prices thanks to rigid cost control. This involves all spheres of the company’s work − from the personnel recruitment to investment into the network rollout. The operator has always held the leading positions on the market in terms of business efficiency. Tele2 has been ranked first among Russian mobile operators by the number of subscribers per one employee (4 400).

Despite integration of Rostelecom’s mobile assets, in 2014 Tele2 performed a high indicator of revenue per one employee (total number of employees at 7 948) – RUB10.8 mn per one person. This is the second place among all operators on the market.

Besides, in 2014 Tele2 has switched all integrated assets onto the macroregional operational structure having consolidated 60 penetrated regions and 19 subsidiaries under a single management system. As a result, a new purchasing power allowed Tele2 to save over $1 bn in tenders on selection of equipment and services suppliers.

Tele2 has also accelerated integration of incorporate processes and, as a result, cut operating expenses. All in all, the company saved around RUB300 mn on optimization of the distribution network and back office operations.

In 2014 the company switched over 8 mn of Rostelecom’s subscribers (75%) to the centralized Tele2 service, which will allow cost cuttings of over RUB3 bn per year.

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