Extending the value chain

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As data and service demands increase, Telekom Austria Group sees opportunities to extend its value proposition to adjacent business areas such as wholesale, cloud and ICT, M2M as well as content and media.

In wholesale Telekom Austria Group is already a full-service provider offering voice, mobile, roaming, data, satellite and infrastructure. In cooperation with KPN and América Móvil Telekom Austria Group provides backbone services via 200 points of presence (PoP) in 47 countries. Wholesale is expected to grow in the coming years.

Growth areas extending
the value chain

Man with magnifying glass (Illustration )

Telekom Austria Group also builds on its strengths in Cloud and ICT solutions. Cloud computing, i. e. the networking of large server groups to allow data storage and virtual access, is regarded as a dedicated growth area at Telekom Austria Group, with target marketplaces in Austria, Bulgaria, Croatia and Slovenia. Capturing these business opportunities will require the build-up of additional capabilities in the areas of IT consulting, business transformation and software development.

Machine-to-Machine (M2M) is another such area where Telekom Austria Group is building its capabilities. Across its service range Telekom Austria Group M2M already has more than 1 million SIM cards in service. Telekom Austria Group M2M provides services such as managed connectivity, smart metering, ‘integrated solutions’, i. e. end-to-end solutions for enterprise customers, and ‘connected life’ services, which address the consumer market.

Telekom Austria Group’s belief in convergence as a key industry driver also extends to the ambition to provide added content and media solutions. As the user viewing experience is shifting towards personalised services, new opportunities emerge. Traditional linear TV e. g. is becoming obsolete as customers shift their viewing habits towards video on demand and customised content. Internet OTT players are also gaining market share. To meet these shifts in customer demand, Telekom Austria Group is working on an entertainment content cooperation with América Móvil. Potential platform synergies include TV and music propositions as well as multiscreen capabilities. The Group is also evaluating how to position itself along the media value chain and whether to become involved in the origination of content, so as to generate additional revenue streams.

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