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Tele2 AB SWOT & PESTLE Analysis

ID : 521036853| Sep 2021| 18 pages

COMPANY PROFILE -Tele2 AB

Business Sector :Telecommunication

Operating Geography :Sweden, Europe, Global

About Tele2 AB :

Tele2 AB is a European telecommunications operator. It is headquartered in Kista, Stockholm, Sweden. The company has its operations in Austria, Croatia, Estonia, France, Germany, Kazakhstan, Latvia and Lithuania, Netherlands, Sweden, Norway, Russia and the UK. Some of the major products of Tele2 AB are mobile and fixed-line telephony, cable TV and internet services. In 1993, Tele2 started as a telecommunications company in Sweden by the company Investment AB Kinnevik. In 1997, the three companies Comviq, Kabelvision, and Tele2 came together as the Tele2 brand. Tele2 operates as one of the largest nationwide 2G/3G/4G Mobile Network Operator in Latvia. It became the first mobile network operator in Sweden on 24 May 2020, to commercially launch a 5G NR network. One of the most recent developments of Tele2 has been to realign its geographic footprint towards Eastern Europe and the Nordic region while focusing on its own infrastructure-based operations which provide higher growth options. The company has also shown notable success in the growth of the mobile Internet broadband connectivity. With a customer base increasing by the hundreds of thousands yearly, Tele2 has notably achieved the most success in the Russian market. On May 24 2021, Tele2 issued a press release on launching half-sized SIMs to reduce plastic waste.

The Unique Selling Proposition or USP of Tele2 AB lies in it being a major European telecommunications operator. Tele2 AB's vision statement reads "To be the smartest telco in the world, enabling a society of unlimited possibilities."

Tele2 AB Revenue :


SEK 26,554 million - FY ending 31st December 2020 (y-o-y growth -2.39%)
SEK 27,203 million - FY ending 31st December 2019

Competitive Analysis of Tele2 AB

SWOT
PESTLE
The SWOT analysis for Tele2 AB is presented below in a matrix followed by the detailed analysis report:
StrengthsWeaknesses
1. Large Business to Business (B2B) customer base
2. Diverse portfolio of sophisticated products
3. Recognized leader in Internet of Things (IoT) and strong position in TV market
4. Possesses 10G network modernization capabilities
1. Price pressure in Sweden
2. Roaming service revenue is volatile to due to pandemic like events
3. Highly dependent on network suppliers and handset manufacturers
4. Involved in multiple cases for infringement and aggressive market competition practices
OpportunitiesThreats
1. Advertisement supported video streaming services provide opportunity for growth
2. Enterprises are upgrading their networks with 5G and WiFi 6
3. Low orbit satellite broadband communication can offer affordable high-speed internet
1. Emergence of on-demand and OTT service creates a challenge for TV broadcasting segment
2. Faces risk of strategic negotiations and agreements with competing service providers
3. High competition in Lithuania
SWOT & PESTLE (combined)
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Detailed SWOT Analysis of Tele2 AB

Strength

1. Large Business to Business (B2B) customer base: Tele2 AB provides its Internet of Things (IoT) solutions to a large customer base, including Business to Consumer (B2C) and Business to Business (B2B). The B2B customer base in Sweden is the primary driver of revenues for the company. Its B2B product offering is adopted by 82% of the Sweden business sector, comprising of 100,000 businesses from private businesses, the public sector, and municipalities of Sweden. Tele2 AB achieved this market share by being the only telecommunication service provider that offers a full range of products and services. Businesses find it easier to opt for multiple services in one subscription model with a single provider. The services provide scalability and flexibility, allowing B2B customers to look for all solutions in its one-stop-shop. The full range of services offered for B2B is mobile telephony, fixed high-speed broadband and telephony, cloud and IT services, workplace, etc.

2. Diverse portfolio of sophisticated products: Tele2 AB has created a diverse portfolio based on its network capabilities and broad 5G network coverage in terms of its customer base. The company offers fixed broadband connections with fiber and a coaxial network in Sweden. It provides mobile-centric solutions powered by its 5G network in Baltic regions. Both the services are optimized for video entertainment aggregator performance. The countrywide 5G network rollout has allowed Tele2 AB to provide a faster and reliable network for its large customer base. Its countrywide presence allows the company to serve businesses whenever and wherever needed. Along with this, the company has other product offerings like network peripherals, cloud services, A2P messaging, roaming, etc., for its international business customers spread across 150+ countries.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

This section is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Major Competitors :

Major Brands :

  • Tele2 Unlimited
  • Tele2 foretag
  • pildyk/li>
  • Penny
  • Comviq
  • zeltazivtina
  • boxer
SWOT & PESTLE (combined)
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References used in Tele2 AB SWOT & PESTLE Analysis Report

1. What we offer – Tele2 - https://www.tele2.com/about/what-we-offer/

2. 2020 Annual and Sustainability Report - https://www.tele2.com/files/Main/3372/3313796/release.pdf

3. Tele2 Capital Markets Day 2021 - https://www.tele2.com/files/New-Structure-2021/Investors/Tele2_Capital_Markets_Day_2021.pdf

4. FIRST QUARTER April 22, 2021 - https://www.tele2.com/files/globalassets/documents/reports/2021/Tele2-Q1-2021-Presentation.pdf

5. Bite Lithuania files lawsuit against Tele2 – Telecompaper- https://www.telecompaper.com/news/bite-lithuania-files-lawsuit-against-tele2--1139053

The detailed complete set of references are available on request in the 'Complete report' on purchase.

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SWOT & PESTLE.com (2021). Tele2 AB SWOT & PESTLE Analysis - SWOT & PESTLE.com. [online] Available at: https://www.swotandpestle.com/tele2-ab/ [Accessed 25 Sep, 2021].

In-text: (SWOT & PESTLE.com, 2021)

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Tele2 AB SWOT and PESTLE analysis has been conducted by Rakesh Shewale and reviewed by senior analysts from Barakaat Consulting.

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