Telenor Short Introduction Telenor Short Introduction
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Content z Telenor – Short introduction Universal Services in Norway z Norway – Background for Universal Services z Universal Services in Norway (and EU/Europe) Anders Lillehagen Telenor / Norway Telenor z One of the world’s 12 largest GSM operators with more than 67 million mobile subscribers worldwide z Largest mobile consolidated operations: –Kyivstar 9.3 mill –Digi.Com 3.8 mill –GrameenPhone 3.7 mill –Pannon GSM 2.8 mill –Telenor Mobil 2.7 mill –Sonofon 1.3 mill z Norway’s leading telecommunications company Telenor z Largest provider of TV services to the Nordic market Short introduction z Total workforce: 22,400 people (11,300 in Norway) Telenor’s mobile operations Record-high subscriber growth Norway Thailand Telenor Mobil 100% DTAC 40.3% Subscriber figures (in millions) Denmark Russia Sonofon 100% VimpelCom 29.9% Ukraine Austria kyivstar 56.5% One 17.5% Total Consolidated Total Pro Rata Hungary 100% Pannon 100% figures (all companies) 67.1 60.1 Malaysia Digi 61.0% 52.7 45.2 Bangladesh 62.0% 38.9 GrameenPhone 34.2 31.2 27.8 Pakistan 24.8 24.8 21.3 21.4 Telenor Pakistan 100% 18.7 19 16.9 16.5 13.2 14.3 Montenegro ProMonte 100% Sweden Telenor Mobile 100% Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 1 Background Norway Background - Norway z Norway is a long country with large area z Hash climate (cold winters with lots of snow) z High mountains z Fjords – deep and narrow -> high building cost Country Population Per BDP Mill. square OECD=100 z Small population km Norway 4.54 140 123 –> few per switch Sweden 8.90 197 111 z Scattered population Germany 82.35 2306 103 –> long access lines England 60.00 2470 103 The 16.05 3864 111 Netherlands China 1306.31 1338 Telecommunications should be costly in Norway Background – Background – Telecommunications market Norway and the EU z Liberalized gradually through the 90’ – Fully opened and liberalized since 1998 z European Economic Area agreement (EEA) z Fixed networks (97-98% penetration): z Norway has implemented the EU – Telenor has a fixed network covering the whole country telecommunications framework including the US – Several other fixed network providers directive z Two nationwide mobile networks (>100% penetration) z All households have access to the network – Many have both fixed and mobile access – Many have ISDN and/or broadband access z Comparable low prices Universal Services Universal Services Before 1998 From 1998 z Definition z Monopoly and state owned – Split between USO and SSO company – Minimum set of services to all end users at an affordable price z Scope z Queue to get a phone up to the – Telephony – Directory enquiry and directories late 80’ – Public pay telephones – Disabled users z USO (telephony etc) and SSO z Mechanism z Gradual liberalization – fully – Financing of US / compensation – Telenor has not requested compensation (Provide US if not a fund) opened by 1998 – Price regulation / price cap introduced by 1998 – Normal delivery area, duty to contract and non-discrimination z Fixed network, but fixed mobile solutions in some places 2 Universal Services in EU/Europe Achievements (Norway) z Fully liberalized and a competitive market – Real choice for end-users from various providers and services z Minimum set of services of specified quality to which all end-users have access at an affordable price in the light of specific national conditions. z All households have a telephony service (Universal Service directive – 2002/22/EC) – Choice from various providers (telecom, cable-TV and electricity companies) – Many end-users have ISDN or broadband access z Only Austria, France and Italy have implemented a compensation / z Two country wide mobile networks and several providers sharing mechanism, but the mechanism of these countries are disputed. – Pre-paid and low cost of entry to telecommunication services – Many have only a mobile phone z Other countries have not designated an US provider or the designated z Competing directory services provider is viewed as incurred no significant competitive disadvantage in providing the universal services. z Tailored services for disabled users z Comparable low prices (see for example OECD statistics) “US is not an issue in Norway today” Learning lesson Thank you … z Available services throughout effective competition (USO is only relevant when the needs of end-users are not met by the market) z Operators and providers are motivated to provide services to Anders Lillehagen everybody when the regulatory environment is right Telenor z No technology or provider should be predetermined – Wireless technologies can be cost efficient and give fast roll-out Phone: +4791323175 – Speed of wireless solutions is fast improving E-mail: [email protected] z Low cost of entry – Mass production of terminals and equipment – Production of low cost terminals – High penetration – Pre-paid mobile (low entry and cost control) z Communication centre and village phones – Example: GrameenPhone in Bangladesh 3.