Proximus launches #inspire2022 strategy to accelerate fibre and 5G deployments
Amid the COVID-19 outbreak Proximus has unveiled its new business transformation strategy called #inspire2020.
Built on four key pillars #inspire2020 aims to position Proximus as the benchmark operator in Europe and underpins its commit to network continuity during the crisis.
“I am very pleased to present our plan # inspire2022, which crystallizes a radical change in our vision and our ambition,” said Guillaume Boutin (pictured), CEO of the Proximus Group. “The experience of the Covid-19 pandemic that we are going through, reinforces our conviction that Proximus is a key player for a prosperous digital Belgium.”
“In this unprecedented period, we are particularly aware of our responsibilities towards our employees, our customers and Belgian society as a whole. We must offer everyone access to high-quality networks as well as services and experiences that meet their expectations every day without fail.”
The first is Proximus pledge to build a Gigabit network in Belgium, by accelerating the deployment of fibre and 5G
Specifically the company aims to connect 2.4 million households to fibre by 2025. Additionally, it will launch 5G tomorrow, with initial coverage in more than 30 municipalities across the country. To support this Proximus will create an open reference network ready to welcome Wholesale partners and the development of a new Network Business Unit that aims to create the ecosystem necessary to bring very high-speed internet to the whole of Belgium.
Secondly it will structurally transform its operating model to improve its efficiency and Net Promoter Score (NPS)
Proximus aims to become a 'legacy-free' operator in IT matters by 2025. It will also become a leader in customer satisfaction and recommendation NPS with a focus on simplification, redesigning customer journeys and personalised and intuitive digital interfaces.
Additionally, the company is aiming for an average annual net reduction in its indirect operating expenses of 1 to 2% (CAGR) between 2020 and 2022. In support of these objectives Proximus will also create 3 new divisions which will report directly to the CEO: Digital, IT solutions and Architecture & Data.
Thirdly, Proximus will return to profitable growth by 2022
This will happen by growing its customer base to more than 2.1 million Internet connections in the Consumer market. It will evolve the MyProximus app to become a platform of local ecosystems as well as transforming its B2B activities and evolving towards the next generation of ICT.
Moving forward it will place sustainability and digital inclusion at the heart of all its activities
The goal of the company is to promote alternative digital education, make digital accessible to all and continue to improve connectivity in rural areas and white.
As the company prepares to make the necessary investments to support this new strategy, it says that ‘the Covid-19 will have several impacts on Proximus activities, despite the measures adopted to mitigate its scale’ as a result a certain negative impact is expected on the EBITDA and therefore the level of CAPEX.
Proximus now forecasts its 2020 EBITDA and CAPEX at between €780 and €800 million.
The company says it will increase its annual CAPEX to 1.3 billion euros until 2025 while lowering its gross annual dividend to €1.20 per share on the 2020, 2021 and 2022 results.
“Over the next two years, we will invest heavily to deploy the next generation of networks at a sustained pace, structurally transform our operational model and accelerate the pace of innovations for the benefit of the client,” added Boutin.
“This strategy will increase customer satisfaction, obtain the commitment of our employees and our partners and adopt a sound financial trajectory with a view to growth.”