Orange will probably really become Salt
The head of the telecom company, Johan Andsjö, talked about the name change in an interview with NZZ am Sonntag.
Andsjö does not explicitly confirm the new brand name. But he comments on the speculation as follows: "All I can say about this is that if this is the new brand, it would be a short, simple name that comes before Swisscom and Sunrise in the alphabet."
The reason for the change: At the beginning of 2017, the five-year license agreement that Orange Switzerland signed in order to be able to continue using the name of the French Orange as a subsidiary expires. In order not to be under time pressure, the decision was already made in 2014, says Andsjö.
The company estimates the cost of the rebranding at around 40 million Swiss francs. This amount is made up of the redesign of the stores and an increase in marketing expenditure to communicate the new brand.
But the new brand will also save money, since the license fee for the Orange name will be eliminated. Says Andsjö, "I'm not allowed to give the exact figure. But a range of 18 to 20 million francs per year has been mentioned in the media." If one assumes these figures, the company will be operating more cheaply with the new brand after just two years. Above all, however, the company has so far "invested in the brand of another company instead of building up its own brand," Andsjö told the NZZ am Sonntag.
After the launch event next Thursday, the stores will be closed for 72 hours and refitted, Andsjö announced in an interview with NZZ am Sonntag. The goal is to have at least 90 percent of the stores open with the new brand on the following Monday.
Asked whether Swiss telecom operators will face a price war from Salt's new owner Xavier Niel (known for aggressive price cuts), Andsjö replied in the negative. "We are launching a premium brand. Xavier Niel now operates in France, in Monaco, Israel and Singapore, and has a different strategy everywhere. Still, there is a kind of Xavier Niel DNA, and that is simplicity and innovation. But the pricing is different from market to market." (NZZ am Sonntag/sis)
