TeliaSonera on Tuesday said it will invest total accumulated Capex (capital spending) of up to SEK 6–7 billion in 2015-2016 in two main areas.
The telecom operator will spend accumulated Capex of SEK 2 billion on business transformation in 2015–2016 to increase competitiveness and reduce cost. The strategy is to reach net savings with a yearly run rate of SEK 2 billion during 2017.
This apart, TeliaSonera will spend accumulated Capex of up to SEK 4–5 billion on additional grow initiatives in 2015–2016, primarily accelerating the fiber roll-out in Sweden, new B2B offerings, as well as upgrading data networks in Eurasia.
In Sweden, the aim is to increase the number of households reached by TeliaSonera’s fiber services from 1.1 million to 1.9 million between 2014 and 2018.
TeliaSonera said its Capex in its core operations is expected to be around 15 percent of service revenues the next two years.
“We announce that TeliaSonera will invest to grow in our core business in the Nordics and Baltics, in taking Eurasia to the next level on the back of increased demand for mobile internet, and in areas that complement and strengthens our core business,” said Johan Dennelind, president and CEO of TeliaSonera.
“In addition we will be investing to save, increasing simplicity and thereby increase our overall competitiveness. These initiatives aim to defend or increase our market shares and reach sustainable cost savings, without compromising on dividend to shareholders,” Dennelind added.
TeliaSonera said the Capex-to-sales ratio is expected to be approximately 15 percent for 2014, excluding license and spectrum fees.
For the full year 2014, net sales are expected to be slightly below the level in 2013.
Baburajan K
editor@telecomlead.com
