Sustainable value creation
We have developed a simple and focused customer-centric strategy that will enable us to grow and prosper in an increasingly data-centric world. Our goal remains to become a high-performing, high-growth, fixed-mobile convergent operator focused on sustainable value creation.
Monetizing mobile data
Our mobile networks continue to experience
rapid data traffic growth, and we are very
focused on making sure that incremental
traffic translates into additional revenues.
Our mobile data monetization strategy is
built around several key drivers:
• 4G/LTE network expansion: Our 4G
networks enable us to deliver high volumes
of data at faster speeds in a more cost-efficient manner than with 3G networks.
• Smartphone adoption: More data-capable
smartphone devices, particularly 4G/LTE,
with a strong device portfolio and post-paid
strategy to enable our customers to use
data services on the move.
• Stimulating data usage: More compelling
data-centric products and services to
encourage our consumers to consume
more data, while maintaining price
discipline and sustaining our mobile data
margins. For example, we have introduced
digital innovations with access to specific
applications charged according to timeusage rather than data consumption.
We are moving quickly to meet the growing
demand for high-speed data from residential and business customers alike in our Latin
American markets. We are doing this by:
• Accelerating our hybrid fiber-coaxial (HFC)
network expansion: We are hastening the
roll-out of our high-speed HFC fixed network
while complementing our organic build-out
with small, targeted acquisitions. In 2016,
we expanded our HFC network to pass an
additional 777,000 homes. In 2017 we’ve
nearly doubled this, adding 1.3 million.
• Increasing our commercial efforts to fill the HFC network: As we expand the network, we also deploy commercial resources necessary to begin monetizing our investment. Specifically, the HFC network allows us to sell additional services to existing customers that drive ARPU growth over time.
• Product innovation: We drive customer
adoption by expanding our range of digital
services and aggregating third-party content,
as well as some exclusive local and
international content, enabling us to
differentiate ourselves from our competitors.
For example, we have agreements with local
soccer teams, leagues and sports channels in
Bolivia, El Salvador, Colombia, Guatemala
and Paraguay to air matches exclusively on
our pay-TV channels. We are committed to
bringing the best content to our customers,
and for that we partner with various players
in the ecosystem, from studios to Over-the-
Top providers (OTTs) and sports industry
The expansion of our HFC network as well
as the development of state-of-the-art
datacenters, analytics and Cloud services
is also creating new opportunities for us
to target B2B customers by offering a
more complete suite of Information and
Communications Technology (ICT) services.
Our strategy is to selectively evolve our
portfolio into ICT-managed services to avoid
excessive fragmentation and operational risk, while building the Tigo Business brand and
differentiating ourselves through our service
model and frontline execution. We believe
that the small and medium-size business
(SMB) segment represents a particularly
attractive opportunity for growth, as SMBs
digitize their business and operations using
digital communications, and implement Cloud and datacenter solutions in line with what we see in more developed markets.
Digital innovation and customer-centricity
We are focusing our digital innovation on
products and customer-facing developments
that drive user adoption of high-speed data
services such as: data monetization and video consumption, including Tigo Play; and this year’s launch of Tigo ONEtv with TiVo. Through Tigo ONEtv, our next-generation user experience
platform, we bring a cutting-edge pay-TV entertainment experience for our customers, with advanced personalization and recommendations, seamless integration of content across linear, on-demand, and robust multiscreen capabilities. We also provide a superior digital user experience through our Tigo Shop App for prepaid, Mi Tigo App for
post-paid, and MFS. Our focus remains firmly set on driving the adoption and enjoyment of these digital channels by our customers.
Total channel active users (m)
Year-over-year growth 35%
We are evolving our strong commercial
distribution network to operate digitally,
which we believe will improve both customer
experience and operational efficiency. To enable a seamless and integrated experience across sales and care touchpoints, we are implementing a business transformation that interlinks user experience, digital innovation, business processes, and our back-end information and Communications Technology systems. We have also adopted and deployed a net promoter score (NPS) program, designed to strengthen our customer-centric culture.
Millicom: a growth story driven by entrepreneurs and innovation.