Everything Everywhere's (EE) new CEO, Olaf Swantee, plans to accelerate the merger process of Orange UK and T-Mobile UK which is likely to result in further job losses at director levels and within back-office departments.
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Swantee is said to be frustrated by the slow speed of merging the two companies and is expected to make the new cutback announcements next month following a strategic review. EE has already pared back its senior management team from 26 people to 10.
Swantee also told the Financial Times that he wants EE to aggressively push forward with growing its data traffic to generating 50 per cent of the company's revenues, up from 39 per cent this year. This drive will be helped by focusing on providing EE's customers with "personal interest" content based upon services ranging from online games to TV using a variety of devices linked to Orange or T-Mobile.
Interestingly, the FT also reported that EE will appoint two banks within the next few weeks to help the company raise funds for the first time since the two brands combined. The funding might be used to pave the way for EE's bid on LTE spectrum next year.
Of note, the CEO seems relaxed about keeping the Orange and T-Mobile brands, but also plans to use the EE name when it rolls out up to 35 retail stores across the UK this year. It would appear the Orange brand will be used by EE for its high-end premium service, while T-Mobile will be positioned as serving the "value" or low-end sector.
Swantee also told 3UK CEO David Dyson that it is critical that 3 be allowed to use the m-commerce platform that EE formed with Vodafone UK and O2 UK.
For more:
- see this Financial Times article (reg. req.)
- see this separate Financial Times article (reg. req.)
- see this Telecompaper article (sub. req.)
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