EU Telecoms Cut Jobs While Pushing for New Growth

EU Telecoms Cut Jobs While Pushing for New Growth

With extensive experience in enterprise telecommunications and navigating the complexities of network risk management, Vladislav Zaimov offers a sharp perspective on the strategic currents shaping the European telecom landscape. From corporate restructuring and the fight against digital fraud to the massive undertakings of rural connectivity and high-stakes policy debates in Brussels, the industry is at a pivotal juncture. In this conversation, we explore the trade-offs behind major operational shifts, the technological innovations redefining customer trust, the logistical challenges of infrastructure expansion, and the evolving strategies for retaining subscribers in a fiercely competitive market.

Sunrise is considering a significant reduction in leadership and other roles to simplify its structure, while explicitly protecting customer-facing staff. What are the strategic calculations and potential pitfalls of such a move, and how does a company navigate this internally to maintain stability?

It’s a classic, high-stakes balancing act. On one hand, streamlining a complex organization by reducing up to 190 leadership positions can absolutely increase agility and speed up decision-making. You’re trying to flatten the hierarchy. The strategic calculation is that the long-term efficiency gains will outweigh the short-term disruption. However, the pitfall is immense. You risk losing invaluable institutional knowledge and creating a morale vacuum if the process is handled poorly. The key is the consultation process they’ve initiated. It has to be more than a formality; it must be a genuine dialogue to manage the human impact. Shielding customer-facing employees is the smartest part of this strategy—it ensures that while the internal engine is being retooled, the customer experience at the frontline remains stable and unaffected, which is critical for preventing churn during a period of uncertainty.

Deutsche Telekom is partnering with First Orion to introduce branded calling. Could you walk us through how this technology works on a practical level to combat fraud, and what success will look like for the enterprises that adopt it?

From a technical standpoint, this is about restoring trust in the most fundamental form of communication—the phone call. When an enterprise using the Inform software places a call, the system essentially performs a real-time digital handshake with Deutsche Telekom’s network. It verifies the call’s origin against a secure registry and then pushes the verified company name, their logo, and even the reason for the call directly to the recipient’s mobile screen as it rings. This preempts the scammer’s ability to spoof a legitimate number. Success for an enterprise won’t just be a fuzzy feeling of enhanced security. The metrics will be concrete: a measurable increase in call answer rates, a higher percentage of successful first-call resolutions, and a demonstrable drop in fraud complaints associated with their brand. It transforms a call from a potential threat into a trusted, branded interaction.

The R100 program in Scotland is a massive undertaking, connecting 90,000 rural homes across challenging terrain, including remote islands, with a budget of over £600 million. What are the unique operational hurdles in a project like this, and how do you keep it from spiraling out of control?

You have to imagine the sheer logistical complexity here. This isn’t like deploying fiber in a dense urban grid. In rural Scotland, you’re dealing with unforgiving terrain—rocky ground, steep hills, and the relentless North Sea weather on the islands. Every meter of fiber is a battle. The challenges range from securing wayleaves—permission to cross private land—to physically getting heavy equipment to a remote island. Sometimes you’re literally waiting for the tide to turn. Keeping a £600 million project like this on track requires a completely different mindset. Success hinges on meticulous, long-range planning, deep engagement with local communities to smooth the way, and a flexible, phased rollout that can adapt to inevitable delays. The partnership with the Scottish government is crucial for cutting through red tape, but ultimately, it comes down to the grit of the engineers on the ground.

We’re seeing top telecom CEOs meeting with EU officials to push for “investment-friendly policies.” What specific changes are likely on their wish list, and what could be the ripple effects for consumers and the EU’s broader goal of “tech sovereignty”?

This is the core of the debate in Brussels right now. When CEOs from companies like Vodafone and Telefónica ask for “investment-friendly policies,” they are primarily talking about two things: looser merger and acquisition rules and a “fair share” contribution from Big Tech. They argue that to compete with American and Asian giants, they need to consolidate within national markets to build scale. They also contend that the massive data traffic from streaming and social media platforms requires those tech companies to help fund the network infrastructure they rely on. For consumers, the ripple effect of consolidation could be a double-edged sword: potentially fewer choices and higher prices, but also stronger, more stable operators capable of major network investments. For the EU’s “tech sovereignty,” the telcos’ argument is that without a few powerful European champions, the continent’s digital future will be built and controlled by foreign entities.

Virgin Media is now including premium club rugby coverage for its TV subscribers at no additional charge. In a market where every service seems to be an add-on, what’s the business strategy behind giving away valuable content for free?

This is a very sharp move focused on customer loyalty and “stickiness.” The UK media market is incredibly competitive, and the cost of acquiring a new subscriber is far higher than the cost of retaining an existing one. By adding premium sports content like the Investec Champions Cup without raising prices, Virgin Media is significantly increasing the perceived value of its bundle. It becomes a powerful retention tool. A rugby fan who has this included is far less likely to churn and switch to a competitor over a small price difference. It also serves as a potent acquisition lure, giving them a unique selling proposition to attract a passionate, dedicated audience away from rivals. It’s an investment in long-term subscriber value over short-term revenue per user.

What is your forecast for the European telecom industry’s biggest challenges and opportunities in the coming year?

The biggest challenge will undoubtedly be navigating the tightrope between immense capital demands and a tough economic and regulatory environment. The rollout of full 5G and fiber-to-the-home is breathtakingly expensive, yet operators are facing pressure on revenues and are still fighting for the regulatory freedom to consolidate. However, the greatest opportunity lies in moving beyond being seen as a utility provider. We’re seeing the beginning of this with initiatives like Deutsche Telekom’s anti-fraud service. The future isn’t just about providing faster pipes; it’s about leveraging the intelligence and security of the network to create new, high-value services for both enterprise and consumer markets. The operators who successfully make this pivot from connectivity provider to integrated digital service enabler will be the ones who thrive.

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