Offering the Best Deal is our business
The first three months of 2011 have continued to show strong revenue growth in our main markets. During the quarter, we focused on executing against our set performance targets, and I am glad to announce that our results are in line with the company’s financial guidance. In order to generate enduring revenue growth, the area of cost efficiency is primarily targeted at. Price leadership, a central pillar of offering the Best Deal, requires us to be cost leaders. We unceasingly measure our progress by benchmarking ourselves against our industry peers. It is of great importance that we continue to prove that Tele2 is the master of cost efficiency in our industry.
In Russia, we continue to expand our operations by increasing market share in existing regions and pursuing 2G licence opportunities in new regions. Ever since Tele2 entered the Russian market, we have contributed to a more competitive telecommunications market, offering better terms and more affordable services to customers. We will continue to develop and expand our business and services. From a regulatory perspective, this means that Tele2 wants to participate in the reassignment of unused 2G licences and the distribution and allocation of next generation data licences. We are also very supportive towards technology neutral licences, which would enable a more efficient use of spectrum and foster a more competitive environment.
Mobile sales kept growing and a greater focus on mobile services on own infrastructure has further improved Tele2’s EBITDA margin. The demand for smartphones increased dramatically during the quarter as pricing points improved further. Besides the interest in mobile tablets is also starting to increase, creating a new dimension to the smartphone phenomenon. We are heading into a new era where mobile data will become an even more integral part of our business. It is an exciting time with new opportunities that we need to embrace, we will ensure our continued ability to offer the Best Deal in a more data centric world.
The business segment is another focus area for 2011. We have successfully expanded our business-to-business operations, particularly in the Netherlands where we acquired BBned in 2010. Furthermore, we have improved our capabilities in Sweden, where we are now even better equipped to gain market share. In Russia, The Baltic region and Croatia, we believe that we can do more to address the business segment through the Best Deal concept. Several initiatives will be taken in 2011 to make sure that we grow our presence in these markets, with initial focus on the small and medium size enterprises.
Another key growth initiative for 2011 is the expansion of our operations in Kazakhstan, where we are well-positioned to leverage our operating and investing experience from Russia. Our network is soon ready for a commercial launch. We will open up our services under the Tele2 brand during the first half of 2011.
Tele2 is performing well. The key success factor that drives our company steadily forward is our unique corporate culture born of the people that live and maintain it. Tele2 has always been and always will be a fast-moving challenger. It is vital for our future achievements that we keep this mindset.
Going forward our strategy is simple – Tele2 always offers the Best Deal.
President and CEO, Tele2 AB