Celebrating growth and future in Russia

(6 December, 2007) On Wednesday, Telenor celebrated 15 years of strong growth and development in the Russian market. “We have great ambitions to stay strong in the industry,” said Telenor CEO Jon Fredrik Baksaas.

Beautiful music from Helene Bøksle on vocals and Sidsel Walstad on harp.

Telenor has been an active player in Russian telecoms for 15 years and has contributed to create significant value in Russian society. Telenor has contributed assets, knowledge and resources through shifting times in the Russian economy. During its 15 years in Russia, Telenor has seen its asset value rise to more than USD 10 billion, making us the largest investor in Russian telecoms.

Celebrating the anniversary
The anniversary celebrations were held in Moscow on 4 and 5 December. Wednesday evening employees and guests were invited to a major event in Moscow. Amongst the invited guests were government and media representatives, the Norwegian Embassy, collaborating partners and of course VimpelCom and Golden Telecom

“Great future ahead of us in Russia”
"There is a great future ahead of us here in Russia," said Telenor CEO Jon Fredrik Baksaas.
“The development in Russia has from the beginning almost only gone upwards. We have contributed with competitive services in difficult environments, and would never have made it without the good partnership between VimpelCom, Golden Telecom and Telenor. But we shouldn’t only look back, there is a great future ahead of us here in Russia with challenges and further development, relating to the technology and communication needs of our generation and the next. We have great ambitions to stay strong in this industry, “said Telenor CEO Jon Fredrik Baksaas.

First establishment in Murmansk
Telenor’s first establishment in Russia was in Murmansk in 1992. At that time Televerket (former Telenor brand) cooperated with the Russian government and a local entrepreneur opening the first possibility for international calls from Murmansk through the Norwegian telecommunications network.

Focus on mobile communications
During the following years, Telenor’s operations in Russia concentrated on mobile communication. Collaborations with local license holders were established in St. Petersburg, Kaliningrad and Stavropol. Telenor’s shares in the company North West GSM in St. Petersburg were sold a few years back to the other owners: TeliaSonera and Russian TelecomInvest. North West GSM has since developed into national operator MegaFon. The companies in Stavropol and Kalingrad were later acquired by VimpelCom.

Ownership in VimpelCom and Golden Telecom
Telenor CEO Jon Fredrik Baksaas welcomes the guests at the anniversary event in Moscow.
Telenor became an active owner of VimpelCom in 1998. At that time VimpelCom was in a critical phase and had a modest 130,000 customers. Telenor brought assets and management resources to the table, and made an acknowledged contribution to a company which today has more than 60 million customers. Today, VimpelCom is a modern and well-organized company with great prospects for the future. Telenor holds 33.6 per cent of the shares in VimpelCom and 29.9 per cent of the voting shares.

Telenor also has a strong position as a long-term investor in the Russian telecom industry through investments in Golden Telecom. Golden Telecom has had a positive development in business market, and in broadband. The company has been a key provider of reliable telephony and computer services to Russian industry and commerce. As of today, Telenor has an 18.3 per cent ownership stake in Golden Telecom.

Partner with Alfa Group
Sidsel Walstad on harp.
Alfa Group is a financial investor in VimpelCom through the telecom company Altimo. Telenor and Alfa Group have been partners in VimpelCom since 2000 and in Kyivstar and Golden Telecom since 2003.

Important operation
The economic situation in Russia was unstable when Telenor first entered the Russian market. During its 15 years in the country, Telenor in Russia has become one of Telenor’s major operations internationally. Telenor has contributed significantly to the development of the Russian telecoms market. Today, Telenor is the leading investor in Russian telecoms and has long term ambitions in the country.

Read related press release: Telenor 15 years in Russia