Telenor – online for 150 years

In 2005, we are celebrating Telenor’s 150th anniversary. Looking back allows us to appreciate how growth and lasting value was created. Our history also provides insight into how we may secure the future development of our company.

A pioneering nation
Telenor’s history in Norway is a story of receiving technological impulses from the outside world, and developing them within the framework of distinctly Norwegian conditions. Building telecommunications networks in Norway involved overcoming significant challenges. Equally significant were the gains made with respect to industrial development and improved welfare.

A look back on Telenor’s 150 years in telecommunications provides ample examples of Norwegians pioneering and being quick to adopt new services. In 1880, Telenor introduced commercial telephony, making Norway one of the first countries to provide such services. Due to the challenging geographical characteristics of our country the telephone quickly became an important tool with respect to strengthening social ties and commercial development. In 1906, Telenor became the first company in Europe to connect remote island communities with the mainland via radiotelephony. This provided fishermen in the villages of Northern Norway with a means of direct communication with the exporters on the mainland – an event that contributed significantly to the rapid development of Norwegian fish exports, which today are among the largest in the world. In recent years we have seen that Norwegian fish exporters have been equally quick to take up the Internet in their operations.

In 1976, we opened the first satellite connection between the Norwegian mainland and the oil installations in the North Sea – a significant step in the development of the Norwegian oil industry. In 1981, Telenor launched Europe’s first fully automatic mobile network, soon to be followed by the introduction of GSM technology. Norwegian customers were quick to take up the new services, and Telenor exported the experience and skills gained in the Norwegian telecommunications market to our partners in Europe and later in Asia.

From monopoly to competition
In Norway, as in other countries, the telecommunications industry came to be dominated by national monopolies. The stable and comprehensive frameworks of the monopoly era secured nationwide networks and reliable services.

Over the last 20 years, profound changes have taken place in the telecommunications industry. The monopolies have been dissolved, and together with technological development, new opportunities for innovation, growth, and improved welfare have emerged. It is striking to see how such opportunities are being created through a combination of global impulses and national initiatives.

Today, the telecommunications industry is exposed to fierce competition. National and geographical borders no longer coincide with those of telecommunications. The same products and services are developed and offered in a number of different countries. Another example is how telecommunications solutions are managed and provided across borders. In our international commitments we have been able to draw on our experience and expertise, and this has given us a solid basis for extracting synergies relating to innovation and new development.

Telenor is becoming a truly international company. In 2003 we joined the GSM Association, an organisation made up of the world’s twelve largest mobile operators.

The road ahead
Telenor’s continued growth during 2004 provides us with a good platform for further improvement. By focusing on cost-control we will counter rising costs relating to fierce competition in mature markets – where we are firmly established – as well as costs relating to the development of activities in emerging markets.

Telenor’s strategy is to maintain the company’s leading position in Norway as well as developing profitable mobile operations in international markets. As a consequence, we have organised our Group Management in order to focus on both existing and emerging areas of growth.

The Telenor of today is the result of countless individual efforts to develop the company through 150 years. Our organisation currently consists of thousands of skilled people from various backgrounds, and as we continue to develop our core competence we will come to rely increasingly on people from different nationalities.

Customer satisfaction
In recent years we have developed a management culture that involves active pursuit of improvements. We also remain fully committed to enhance customer satisfaction and customer perception, an absolute requirement in all the markets where we provide services. For Telenor it is essential to earn the trust of customers, owners, employees and society in general.

By pioneering new technology, Telenor has been online for 150 years. We do not celebrate technological innovation for its own sake, but for the opportunities it provides. We are equally excited about the opportunities technology will bring us in the future.