Digital lifestyle as core competence

freenet sees itself as a digital lifestyle provider. Digital lifestyle mainly includes telecommunications, TV, Internet and mobile devices as well as all services, applications and equipment associated with mobile devices or that can be controlled or used via an intelligent device. With a business model consistently geared towards customers and their needs, freenet is one of Germany’s leading market players with around 8.8 million subscribers. 

 

CUSTOMER-FOCUSED VALUE CREATION AND BUSINESS MODEL

The activities within freenet’s value chain that generate value are situated in packaging, multichannel distribution and customer management. In addition to using our own infrastructure in the area of TV and Media, major partners such as network operators, hardware and application manufacturers, energy suppliers and producers of TV and radio programs supply the relevant precursors for this. freenet AG generally places great emphasis on forming sustainable long-term partnerships.

Preproduct

Telecommunication
Hardware suppliers
Digital Lifestyle
Energy utilities
TV / radio programmes
Own network infrastructure (TV)

Packaging

Tariff generation
Marketing
Branding
Relationship management

Multichannel Distribution

Captive sales channels
Non captive sales channels

Customer Management

Communication
Customer care
Customer development
Customer loyalty
Billing
CRM based on
artificial intelligence

Customer

B2B 
B2C

With the help of tailor-made tariffs and branding, freenet products and services are marketed across a multi-channel distribution network in Germany using a multi-brand strategy. The focus here is on direct customer relationships as well as directly managed sales channels (known as ‘captive channels’), which include approximately 520 freenet shops and 40 GRAVIS stores as well as numerous additional (online) marketing platforms. These channels in particular provide freenet with direct customer access with upselling and cross-selling potential as well as strong customer retention while at the same time keeping distribution costs low. freenet also holds exclusive marketing rights for mobile communication services on the Telekom and Vodafone networks in more than 400 electronics stores operated by Media-Saturn-Deutschland GmbH (Media Markt and Saturn).

 

LONG-TERM CUSTOMER CONTRACTS WITH FOCUS ON CONSTANT VALUE CONTRIBUTIONS

For more than 25 years now, customer experience management has been one of freenet's most important core strengths and something from which the company's TV and Media business has also profited. Customer management, which encompasses everything from billing to customer support, development and retention, thus completes freenet's almost entirely integrated value chain.

Long-term customer contracts that make steady value contributions form the basis for our business and the starting point for growth via continuous optimisation and expansion of the digital lifestyle portfolio. The emphasis here is on consistently harnessing our established sales strength and expertise as well as new and existing sales channels.

 

MOBILE COMMUNICATIONS: LARGEST NETWORK-INDEPENDENT MOBILE COMMUNICATIONS PROVIDER

freenet’s core business is mobile communications. In providing mobile communications services, freenet follows a business model that is both unique and supported by the regulatory environment in Germany. Unlike mobile network operators (MNOs), the company is able to do business without operating an expensive and capital-intensive mobile network.

Another unique selling proposition of freenet on the German market is the fact that its tariff portfolio includes the original tariffs of the three German network operators Deutsche Telekom, Vodafone and Telefonica Deutschland – while own tariffs of group brands such as freenet or klarmobil can be developed and offered as well. This allows freenet to have a high degree of flexibility in addressing customers and designing innovative mobile communications products, such as the app-based freenet FUNK and freenet FLEX offerings. Over the past 20 years, this approach enabled freenet AG to evolve into the largest network-independent mobile communications provider in Germany.

 

TV AND MEDIA: IPTV AS GROWTH DRIVER

The experience gained in the Mobile Communications business laid the foundation for the company's entry into the TV and media business. freenet has been active in this market via its acquisition of the Media Broadcast Group and a majority holding in EXARING AG since 2016 and has gradually expanded this segment into another key revenue pillar. Media Broadcast designs, sets up and operates multimedia broadcast infrastructure for TV and radio based on state-of-the-art digital transmitter technology. freenet is the sole provider of digital antenna TV (DVB-T2 HD) in the German market. The company distributes TV content from public and private broadcasters to private end customers via the freenet TV brand.

EXARING AG operates the first fully integrated platform for IP entertainment services in Germany. Its business model is also based on the transmission of TV content from public and private broadcasters. The company broadcasts and sells video content via Internet-based technology (IPTV) with an innovative app and exclusive access to a modern fibre-optic network in Germany stretching over more than 13,000 km. The IPTV product is sold to private users in a subscription model via the freenet Group’s distribution channels, among others. Business with private customers is complemented with an offering for business users including addressable TV and web-to-TV services. This modern, convenient and affordable way of receiving TV content has enabled waipu.tv to gain a relevant market position in the growing German IPTV market within just a few years.

For investors

For investors

freenet AG has a clear capital market profile for long-term oriented investors.

Responsibility

Responsibility

freenet is aware of its responsibility.