The core of the VEON business, our digital operator pillar provides world-class connectivity and digital services, helping customers maximize their potential across the 1440 minutes that make up each day. We do this by offering advanced digital services in adjacent sectors such as fintech, education, healthcare and entertainment, supported by network capabilities that provide 4G for all.
We explore and locate scalable new ideas and emerging technologies in the countries where we operate. In addition to creating synergetic growth opportunities with our digital operator business, this ensures our portfolio of services remains fresh and relevant to consumers, and unlocks sustainable long-term value for the company and its stakeholders by fueling further engagement and growth.
Transitioning to an asset-light approach will enable VEON to focus on providing best-in-class communications and digital services. By working closely with third parties, we are able to monetize our existing assets, in particular our tower portfolios, thereby reducing leverage and enabling an even greater focus on developing our future-ready digital operator services tailored to customers’ needs in each of our countries.
We are transforming VEON from a traditional, voice-and-data telecoms operator to a modern, world-class connectivity and online services digital operator. By implementing this strategy, we believe that VEON is creating a business that will deliver value above that of a traditional mobile telecom operator. Maintaining an asset-lite approach, free’s up capital to invest in digital assets in growth areas that refine our portfolio and offer more to our customers.
This strategy is supported by VEON’s diverse geographic coverage. We focus on capturing opportunities in high-growth, underserved markets with significant demand for 4G mobile connectivity and digital services in adjacent sectors.
By executing on this strategy, VEON is able to:
Optimize our portfolio of digital services, making them relevant for each of the 1440 minutes that make up our customers’ day.
Rapidly gain market share in the high-growth, underserved markets where we operate. Increase 4G penetration and convert more voice-and-data users into lucrative multiplay customers.
Ensure the company’s liquidity position and balance sheet remains healthy, while unlocking funds for possible future acquisitions of high-potential digital assets.
Realize the value of its infrastructure assets and outsource the management of its physical network to specialized companies.
We are already seeing results from the execution of this growth strategy.
Since its roll-out, we have:
Seen multiplay users generate more revenue than a single- or double-play customer, as they use more data and a greater number of services.
Witnessed significantly lower churn among multiplay customers while seeing average revenues per multiplay user rise to four times higher than voice-only customers.
Grown our portfolio of digital services in areas like fintech, entertainment, edtech and healthtech.
Completed venture investments into synergetic digital businesses in Pakistan and Bangladesh.
Set a successful benchmark for further monetization of our towers’ portfolio with the sale of Russian towers for USD 970 million in 2021.
Made significant progress towards the goal of 4G users representing 70% of our total customer base.
VEON has also demonstrated its ESG leadership and is committed to maintaining this position as the Group moves forward with our long-term development strategy. Our core focus is on the 4 UN Sustainable Development goals where we can make the most impact - Quality Education, Gender Equality, Decent Work and Economic Growth, and Industry, Innovation and Infrastructure - as well as our commitment to being a greener, more sustainable business.