Telefónica’s German subsidiary hopes a new digital transformation programme will help to boost operating income by €600 million between 2019 and 2022.

The operator launched a Digital4Growth strategy at a capital markets day on 23 February, as it talked up the success it had made of integrating E-Plus into its business.

Digital4Growth consists of three core aims: making interactions with customers easier and more intuitive; automating processes to meet customer requirements in real time, notably through increased use of analytics; and improving customer experience by, for example, expanding the number of digital channels.

The operator also said it planned to “establish a comprehensive ecosystem for the IoT...to provide customers with a means of employing easy-to-use devices and solutions”.

It did not provide any further details, but said IoT revenues would “add up to €300 million until 2022”.

Digital4Growth is forecast to boost operating income at Telefónica Germany by €600 million between 2019 and 2022, although the “lion’s share” of will come from additional growth.

The opco saw operating income rise 2.9 percent to €1.82 billion last year on revenues that fell 2.8 percent to €7.3 billion.

It said operating income had risen by 25 percent in the three years since it acquired E-Plus from KPN.

To date it has migrated over 25 million customers to a shared IT platform and harmonised its shop network, with the consolidation of more than 14,000 cell towers set to be completed by 2019.

The digital transformation programme will be funded “through as of yet unrealised synergies from integration with E-Plus,” the company said.

Telefónica Germany CEO Markus Haas (pictured) said: “Over the past three years, we have established the basis on which we can now write the next chapter of our success story.

“Never before have two telecommunications providers in the western world successfully completed the process of integration following a merger as quickly as we did with E-Plus.

“Now, we are concentrating completely on the customer experiences and digital transformation of our company.”

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