After a difficult time with lost market shares, Vodafone Germany boss Philippe Rogge sees his company well prepared for the future. In the past 12 months, “a kind of reliability offensive has been pushed ahead in order to get better in the fixed network, in mobile communications and in service,” he told the dpa in Düsseldorf. “We have laid the foundation for being successful again in the future.”
The former Microsoft manager has been in charge of the company since July 2022, which is by far the most important subsidiary for the British Vodafone group. While the competitors Deutsche Telekom and Telefónica (O2) are on the rise, Vodafone recently lost mobile phone customers.
Fluctuation-prone landline more stable
Rogge reported investments in technology, which made Vodafone’s fixed network, which was previously susceptible to fluctuations, more stable. According to its own statements, the network operator carried out 2,600 measures in the cable network in the past 12 months, in which additional network segments were created and these were equipped with more fiber optics. In 2021 there were only 1000 such measures, in the next 12 months there should be 4000. As a result, there are fewer Internet users in a network segment, which leads to more stability. “Our landline network is as reliable today as it was before Corona – even though it transports a lot more data.”
The number of disconnections among fixed-line customers caused by network disruptions has fallen by around a quarter in one year, by around 80,000 to 230,000 per month today. The number of complaints in call centers has also fallen by 15 percent within a year, says Rogge. They have worked hard “to bring the fast speeds in the fixed network to our customers more stably”. Now the situation has improved significantly. “We’re back where we should be, we’ve eliminated the problems,” says Rogge. “In this way we will convince even more customers in the future.”
Rogge: “Price-performance problem” in mobile communications
While Rogge speaks of a “reliability problem” in the fixed network that has been solved, he sees a “price-performance problem” in mobile communications. “The value for money was not always where it should be.” Therefore, it has been improved with promotional tariffs and has become more attractive as a result. “It will have an effect.” At the same time, the network expansion has progressed rapidly. 1100 previous 4G dead spots have been closed, and another 1100 are to disappear in the next 12 months.
The Vodafone mobile network has improved as part of the 5G expansion and the average transmission speed that customers receive has increased by almost 20 percent to 112 megabits per second, says the 53-year-old. There is also progress in service, the average hotline waiting time has fallen from 150 to 50 seconds in one year.
In the first quarter of the year, Vodafone lost customers. When asked when the dry spell for the company will be over and the number of customers will increase again significantly, Rogge says: “I am confident that we will get our fair share of the market in a reasonable time frame.” The company’s position in the market has improved.
Vodafone also under pressure in other markets
The Vodafone group is not only under pressure in Germany, but also in other markets. For this reason, the head office in Great Britain prescribed an austerity course for its national companies. In Germany, 1,300 full-time positions are to be cut by the end of March 2023, primarily in administration and thus largely in the German headquarters in Düsseldorf. Vodafone currently has a good 5,000 employees in the state capital of North Rhine-Westphalia, and there are around 14,000 jobs across Germany. At the same time, 400 new jobs are to be created in customer-related areas.
There is no middle ground. One is in talks, says Rogge. The job cuts are painful for the workforce. It is a sad step, but management has to take it. “The economic realities and the stronger focus on the customer make this necessary,” he says, referring, among other things, to higher energy costs.
