TPG Telecom will review consumer brands such as Vodafone, iiNet and Lebara to assess whether they are serving customers effectively after hiring one of Foxtel’s key executives to lead its product and brand division.
Foxtel’s chief customer, marketing and sales officer Kieren Cooney will step down from the pay TV company after two years to lead TPG Telecom’s brand and product division, a move which could result in the removal of some of the telco’s most well-known brands from the market.
TPG chief executive Iñaki Berroeta said Mr Cooney, who has held marketing leadership roles at NBN Co, Telecom New Zealand and Vodafone, would be in charge of reviewing the value each product gave to customers.
“The opportunity for us is to create a portfolio of brands that makes sense…and try to avoid every brand being everything for everybody,” he said.
“I’m quite open-minded [about consolidation]. We need to get an understanding of the brands that are valuable. […] How many brands do we need? Do we need more brands? Do we need less brands?”
The appointment of Mr Cooney follows a broader restructure of the TPG Telecom leadership team last year. Mr Berroeta has led the business since the $15 billion merger of Vodafone Hutchison Australia and telco billionaire David Teoh’s TPG Telcom in July.
Combining the two companies resulted in a broad range of mobile and fixed line broadband services available to customers. The merger included a new 10-year-licence agreement for the non-exclusive rights to the Vodafone brand in Australia, which costs $27.5 million annually.
Reviewing the brand could be a precursor to Vodafone exiting the Australian market altogether. Industry sources have previously speculated the Vodafone name could remain on the telco’s physical stores, with the business run under the TPG umbrella.
TPG also launched no-frills, digital-only mobile brand Felix in a bid to compete with rival telcos for low-cost customers. The telco also announced plans to launched a 5G fixed wireless product for customers by the middle of this year.
The two product launches could boost revenue for the company, which saw its sales fall 12 per cent to $1.5 billion for the half year to June 30 due to global travel restrictions and retail store closures linked to the coronavirus pandemic. Postpaid mobile customer numbers fell by 2 per cent to 3.4 million in that time, while the number of prepaid customers fell 10 per cent to 1.8 million.
Source: Thanks smh.com