KPN has outlined a new three-year strategy that aims to make annual savings of €300 million and focus on innovation.

The Dutch operator said the new tranche of cuts would be achieved through the “further simplification and rationalisation” of back-end IT processes and systems, and network infrastructure.

There was no mention of any planned job cuts.

KPN revealed it was on track to make annual savings of €450 million between 2013 and 2016.

The new savings are part of a plan entitled “Simplify - Grow - Innovate” that aims to increase adjusted EBITDA margin in its home market by at least three percentage points in the medium-term, compared to 2015.

The innovation part of the plan is focused on improving customer experience, applying new technologies and investing “ahead of the curve”.

For example, the operator said it aimed to increase FTTC and FTTH coverage to 80 percent by the end of this year, up from 65 percent at the end of last year.

One key area of focus is KPN’s enterprise business, which has struggled in recent times.

Sales at its business arm declined by 11 percent in Q4 2015, for example.

The operator said it was focused on a separate approach to SMEs and large corporate with a plan to rationalise its product portfolio by around 30 percent.

For the retail market, KPN said it planned to put the household at the centre of its service model in an effort to cross- and up-sell.

[Read more: Vodafone, Liberty to combine operations in the Netherlands]

KPN Chief Exec Eelco Blok said: “Under our strategy Strengthen - Simplify - Grow, we invested ahead of the curve to build best-in-class networks and innovated to bring Dutch households and businesses great products and leading service quality.

“The coming years will see relentless growth of connected devices and surging data traffic.

“To stay ahead, we are evolving our strategy to the next level which we call Simplify - Grow - Innovate.

“We will deliver a second wave of major business Simplification, expand the capacity of our fully integrated network, and keep innovating to drive new products and give an excellent customer experience to all our customers at home, on the move and at work.”

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