International Expansion

Telenor applied its technological solutions across the world while the different countries developed and implemented new services in their local markets.  Knowledge sharing and solutions based on the local customers’ needs have proven to be a ticket to success.

Four core businesses
By 2000, the four core business areas in Telenor were identified as mobile communications, (covering the international markets), fixed telephony in Norway, broadcast (TV) and Internet services, mainly in the Nordic and eastern European countries. 

International expansion as a strategy
By the mid 90s, international expansion became a proclaimed strategy and Telenor brought its business into international markets. However, Telenor’s international activities had started long before that. Prior to 1970, Norwegian Telecom (the name was changed to Telenor in 1995) was involved in establishing international standards for mobile networks. This is still an ongoing and important activity.

Communication needs
During the 1970s, Norwegian Telecom, in cooperation with other international firms, developed new satellite based communication services that facilitated communication across countries.  Norwegian Telecom worked closely with other Norwegian operations - such as the offshore oil industry and the shipping industry abroad and provided them with communication services.

International partners and investments
Norwegian Telecom cooperated with international partners in developing new technological solutions within the satellite and mobile businesses. Telenor possessed extensive technological knowledge that attracted partners who in turn provided funds for investments. Together these ‘historic’ activities contributed to creating the unique and strong position from which Telenor could launch its international expansion.

The telephone is one of Telenor’s oldest products. Telenor, originally known as the Norwegian Telegraph Administration, was founded in 1855. Gradually, it became clear to politicians that the telephone would have considerable importance for society as a whole.

Towards the end of the 1890s, the government decided that the state should run all national telephone activities. This took some time. It was only in 1974 that the last private telephone company in Norway was taken over by Norwegian Telecom. The service has gone through several name changes over the years.

In 1994, Norwegian Telecom became independent of the state monopoly and the company was subsequently transformed into a competitive business organisation.

Advanced communication services
In the 1990s, Telenor established a number of new business areas as the company gained an increasingly independent role with less governmental control, while preparing for deregulation in 1998.

ADSL and broadband services in Scandinavia
Telenor developed and supplied advanced communication solutions. Among other services this business included the fixed telephony network in Norway. The fixed network is the source of Internet products such as ADSL and other broadband services. Broadband services were first offered in Norway, and later in Denmark and Sweden.

A key responsibility for Telenor Broadband in 2000 was to develop a set of services based on broadband technology. The available network infrastructure for the residential market consisted of satellite communications and cable TV. In 2001, Telenor offered the new ADSL services as a broadband service.

The Internet
UMTS and Turbo 3G are both relatively new products available in the markets. These services make it simple, fast and inexpensive for customers to use their mobile phones or PCs to surf the Internet when they are away from home. 3G brought valuable access to new fields in densely populated areas with less developed infrastructure – such as Bangladesh.

The importance of digital inclusion
Broadband access is not only about the Internet. It is also about video conferencing for educational or business purposes, picture transfer related to health services in remote areas and data connectivity for financial services. In countries with poorly developed fixed line infrastructure, mobile access to the Internet has proved invaluable. By offering access to people in remote or underdeveloped areas, Telenor is successfully combining social responsibility with its core business strategy.

The Internet boom
During the late 1990s, the Internet business was a driving force behind innovation and business development and led to an expansion into the European market. Telenor developed Internet as a third area of activity in addition to its mobile telephony and satellite services. By 2000, Telenor Internet was operational in nine European countries. However, the international Internet activity was gradually reduced in the wake of the collapse of the Internet industry, and Telenor withdrew from the market. The remaining operations were taken care of by other parts of Telenor.
 
The Nordic position
The fixed telephone network is the source of Internet products such as ADSL and other broadband services. Broadband services were first offered in Norway, and later in Denmark and Sweden. By 2005, Telenor had strengthened its position in the Nordic region by acquiring the broadband suppliers Cybercity in Denmark and Bredbandsbolaget in Sweden.

Telenor is a pioneer in mobile communications. Today, the Turbo 3 G  mobile broadband is gaining popularity as it offers full access for people on the move.  This service gives faster than ever access to the Internet – via a USB modem or a PC card. Mobile communications services have come a long way - in a relatively short time span. The continuous expansion of 3G into the market will provide an increasing number of subscribers with 3G access.

The future ‘Fourth Generation’ is in the pipeline. In May 2008, The Swedish Post and Telecommunications Authority concluded the auction of spectrum in the 2.6 GHz band, regarded as key to the next generation of mobile technology. Telenor Sweden was awarded a licence for 2x 20 MHz, granting Telenor substantial opportunities to provide 4G services and high-quality mobile broadband.

Worldwide access
Most people would agree that mobile communications have changed the way we live. Still, many take access for granted. In less developed countries, access to mobile communications improves people’s lives for the better. They gain access to medical help, education, information and they are part of the digital society. Local services built on new and existing technologies are constantly evolving.

Three generations of mobile networks
Manual mobile telephony services were first introduced in Norway in 1966, as a forerunner to the automatic NMT (Nordic Mobile Telephone System) system, which appeared in 1981. Its digital successor, GSM (Global System for Global Communications), was introduced in 1993, and third generation mobile networks, such as EDGE (Enhanced Data Rates for GSM Evolution) and UMTS (Universal Mobile Telecommunications System), were launched for commercial use in 2004.

An inaccessible country
Norway was one of the first countries in the world to start operating mobile phone services. The special topography of this country – mountains and steep valleys – made it difficult to build fixed line services all over the country. Already in 1967, the advantages of equipping people such as doctors and rescue workers operating in remote areas, with mobile telephone services, were apparent.

NMT – a common Nordic standard
By year 2000, the mobile telephone service had become a prominent business area for Telenor. This provided the basis for the international growth strategy. This strong position was the result of more than 30 years of evolution.  Cooperation between the Nordic countries to create a common standard resulted in the Nordic Mobile Telephone (NMT) in 1969 and this was the start of prolonged international collaboration to establish future international standards.

The transfer of knowledge
By the year 2000, Telenor was in the process of launching the next generation of mobile networks GPRS (General Packet Radio Service) and UMTS (Universal Mobile Telecommunications Systems). In 2006, EDGE (Enhanced Data Rates for GSM Evolution) was introduced in the market. EDGE was an upgraded version of the existing GSM network. The EDGE technology increased capacity, raised quality and supported the use of state-of-the-art services via the existing GSM network.

The transfer of knowledge was an important component in breaking new ground and introducing the latest technology in other countries. This strategy has proved to be one of several success mechanisms, which are still valid in 2008.

Today, Telenor is the leading provider of TV and broadcast services in the Nordic countries. The broadcast services date back to the beginning of Norwegian TV history in the late 1950s when Norwegian Telecom was responsible for the national terrestrial network.

Satellites and terrestrial network
When Norwegian Telecom started satellite broadcasting, the company had 36 years of experience in terrestrial broadcasting. Satellite services offered satellite telephony and data transmission services as well as broadcasting of TV over satellites.  Telenor was an early distributor of satellite services due to the communication needs of the shipping industry and the developments of oil related activities in the North Sea.
The satellite Thor 1 was purchased and moved to the 1°West position in 1992.

Telenor has through Norkring, played a key role in the analogue shutdown and digitalization of the terrestrial broadcasting network in Norway. The analogue network shutdown was completed in 2009. The development of digital networks is a continuing process. European countries have started shutting down their analogue networks. Norkring has been responsible for an extensive roll-out of DVB-T, DAB and digital transmission networks also internationally. The Internationalization of Norkring shows that the company withholds highly demanded know-how, within setting up ground-based broadcasting services in difficult geographical areas.

Satellite broadcast
At present, the Telenor Satellite Broadcasting (TSBc) satellites broadcast approximately 250 TV channels throughout the Nordic Region and in Central and Eastern Europe. Satellite broadcasting has shaped events over the last two decades and looks set to continue to have a secure position in the Nordic countries, Central Europe and the Middle East. 

The satellite, Thor 6, was successfully launched in 2009. A new satellite, Thor 7, is scheduled to launch in 2013. Telenor’s new satellite will join the THOR satellite fleet at 1 degree west, which includes THOR 5 and THOR 6. It will be used to distribute broadcast services in Central and Eastern Europe as well as allowing us to extend our coverage for delivering Datacommunications services, in areas including the North Sea, the Baltic Sea and the Mediterranean. Telenor Satellite Broadcasting has also established inclined orbit service operations from its orbital location at 4º West.