Tele1 Europe

January, 2000

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"OUR MONTHLY SALES SOARED TO 400 PER CENT OF TARGET DURING THE FOUR MONTHS OF THE CAMPAIGN THAT USED THE CISCO POWERED NETWORK BRAND AS A MAIN LAUNCH PAD FOR NEW SERVICES. CISCO'S CREDIBILITY HAS CLEARLY BEEN A MAJOR FACTOR IN OUR SUCCESS, AND WE EXPECT THAT IMPACT WILL GROW AS WE CONTINUE TO CO-MARKET OUR CISCO POWERED NETWORK."
Petteri Kaaria, Executive Vice President, Tele1 Europe

Transforming networks in the Nordics
Tele1 Europe, the first pan-Nordic Broadband Solutions Provider (BSP), has made rapid headway building its presence in the deregulated Nordic telecommunications market as a service provider and outsourcer to the enterprise sector. The key to the company's initial success lay in its uncompromising approach to building a high-quality, high-speed broadband network. Another important differentiator was its position as the only company offering Multi Protocol Label Switching (MPLS) IP Virtual Private Network (VPN) services for customers in Nordic countries.

Consistent leadership
As a challenger in the market, Tele1 Europe recognised that its goal of becoming the leading service provider required consistent technological leadership. A detailed review of options led Tele1 Europe to Cisco Systems as the only company able to offer the latest and the best, both in technological and business terms. Cisco's solution of an IP network supporting MPLS offered Tele1 Europe the long-term potentialfor versatile service provision that its strategy demanded. Better still, MPLS made possible a new type of VPN that would ensure higher access speed to customers and more efficient service provision to Tele1. Effectively, the offer would include better service at more competitive prices.

Inter-site connectivity
Tele1 Europe embraced the challenge - by installing a Cisco Powered Network that spans nine cities and offers customers high-quality, multimedia connections over the Internet, including VoIP if required. "As one of the first companies to implement MPLS and the only one with the resources to take on this project - particularly with such tight delivery schedules - Cisco was clearly the best choice for the task," says Tele1 Europe Executive Vice President, Petteri Kaaria. "Cisco's advice has been invaluable in helping us turn our plans into reality."

World's number one
It was equally significant that Tele1 Europe's marketing team would be able to leverage the high visibility and awareness that Cisco enjoys among its target customers. Petteri Kaaria comments: "We knew that Cisco was very strongly established in the enterprise market and Tele1 Europe's audience was familiar with its brand. Marketing our services under the Cisco Powered Network name has made our job much easier."

Soaring revenues
Tele1 Europe launched its VPN services with an advertising campaign that used prominent Cisco Powered Network branding. The campaign ran in leading financial and information technology publications in Finland. Even though the campaign coincided with growth through acquisition and record revenues for Tele1 Europe, its results well exceeded targets. Just three months into full deployment of the new Cisco Powered Network, Tele1 Europe's total revenue amounted to a third of its annual forecast for the year. Post-advertising campaign testing, conducted by Tele1 Europe among a sample of the target audience, concluded higher than average awareness levels and a positive reaction. Awareness of the campaign measured at 50 to 75 per cent of the sample against an expected average of 41 per cent. Open comments made by participants showed the importance of the Cisco brand in adding credibility to the Tele1 Europe offer.

Continued impact
"Our monthly sales soared to 400 per cent of target during the four months of the campaign that used the Cisco Powered Network brand as a main launch pad for new services. Cisco's credibility has clearly been a major factor in our success, and we expect that impact will grow as we continue to co-market our Cisco Powered Network," concludes Petteri Kaaria.


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