Everything Everywhere, formerly T-Mobile and Orange, has reported savings of £21 million in the first half of the year following IT integration work.
The mobile phone operator, which is jointly owned by Deutsche Telekom and France Telecom, achieved the savings by transferring IT infrastructure activities to T-Systems and through a five-year IT testing services outsourcing agreement with Capgemini.
It plans to make £13 million in savings in networks and IT in the second half of 2011, to reach the goal of a total £130 million savings for 2011. The rest of the cost reduction will be in areas such as marketing and distribution.
Everything Everywhere said that it was ahead of its cost savings targets, having achieved £203 million in gross operating expense savings since 2009, the beginning of the joint venture. It hopes to reduce costs by £445 million by 2014 through further integration work.
However, the group recorded a slight fall in the number of mobile phone customers in the second quarter of 2011, compared with the same period last year, from 27.9 million to 27.5 million customers. The growth of contract customers (net increase of 267,000) was offset by a reduction in prepay and home broadband customers (net decrease of 220,000).
Tom Alexander, CEO of Everything Everywhere, said: “The first half of 2011 was a period of good progress for Everything Everywhere. We are delivering on our strategic plan set out in September 2010 and are ahead of plan with our synergy capture [cost savings].”