Vodafone Germany has announced a significant €250 million investment in its B2B unit, aiming to expand its corporate consumer division. This move comes as the company seeks to bolster its position in the business sector after struggling to retain market share against domestic competitors like Deutsche Telekom and Telefonica Deutschland. The B2B arm has been a bright spot for the company, now representing about 20% of its total service revenue.
The additional investment will enable Vodafone Germany to enhance its range of digital products and services. The company plans to build on its existing partnerships with key IT players such as Microsoft, Google, AWS, Accenture, and Zscaler. This expansion includes the creation of 120 new jobs, part of a broader strategy by Vodafone Group to add 400 roles in its business workforce this financial year.
Zoltan Bickel, interim head of Corporate Customers at Vodafone Germany, highlighted the increasing demand for digital solutions beyond traditional SIM cards and landline connections. According to Bickel, “Our customers already want more than just SIM cards and landline connections. Every second order we place is for one of our Beyond Connectivity services. And demand continues to rise. In order to provide our customers with the best possible support on their digitalization journey, we are therefore strengthening our Vodafone Business team.” Bickel emphasized the importance of skilled personnel in achieving successful digital transformation, ensuring that Vodafone Germany remains competitive in the rapidly evolving telecommunications landscape.
This development is particularly noteworthy given the company’s broader efforts to streamline operations, which included a plan to cut 2,000 jobs earlier this year. This selective growth in the B2B unit contrasts with these broader cost-cutting measures, highlighting the strategic priority of expanding its business services.
Looking ahead, the B2B unit’s expansion is set to be overseen by Hagen Rickmann, a former executive of Telekom Deutschland, who will take over from Bickel in March next year. Rickmann’s experience is expected to further drive the transformation and growth of Vodafone Germany’s business segment.
Currently, Vodafone employs around 15,000 people in Germany. This investment in the B2B unit signifies a focused effort to capture more of the enterprise market, which is becoming increasingly competitive. For those interested in the evolving landscape of German telcos, the upcoming Connected Germany conference in Munich will provide a platform to discuss these changes.
This move by Vodafone Germany underscores the growing importance of business services in the telecommunications sector and highlights the company’s strategic focus on digital transformation and customer-centric solutions.
