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 more than 500 freenet shops and around 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.