Telekom Austria has unveiled details of a new business unit that aims to provide “digital” services to SMEs across the eight European markets in which it operates.

A1 digital plans to offer IoT and cloud-based ICT solutions to SMEs, the operator said.

The news comes eight months after Telekom Austria announced plans for such a division.

The business unit, which will be based in Vienna, will be led by former Siemens exec Elisabetta Castiglioni.

Outside of its home market, A1 digital will focus on Germany in particular and said planned to create a separate company based in Munich “in the future”.

Castiglioni said: “Digitalisation offers huge opportunities and possibilities and we as A1 digital can offer products and services that support our customers in precisely this area and help them to generate the greatest possible benefit.

“Digitalisation will change traditional business models, ushering in structural change. Digitalisation will thus become a key strategic issue.”

[Read more: Telekom Austria acquires enterprise-focused telco in Croatia]

Castiglioni added: “A1 digital operates from Vienna in both the local and international markets.

“We are not constrained by national borders, because our services and customers are not limited to any borders.”

Telekom Austria saw sales fall 0.5 percent last year, while EBITDA dropped 2.6 percent.

CEO Alejandro Plater said: “With Elisabetta Castiglioni we have gained a top manager who has a wealth of international experience and a proven track record in the telecommunications and technology industry.

“With her experience in growing new business areas and her deep knowledge of how global companies act, Elisabetta is the ideal candidate to drive the paradigm shift away from our traditional core business toward digitalisation.”

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