DiGi in Malaysia
Telenor holds a 61 per cent ownership interest in DiGi, the third largest mobile operator in Malaysia. DiGi currently holds a GSM 1800 license, and offers mobile voice, roaming and value-added services on both prepaid and contract basis. DiGi is currently one of the leading operators in the prepaid segment, which is the fastest growing segment in the Malaysian mobile market.

With various valued-added services, such as MMS, premium SMS, mobile content and Internet services, and innovative loyalty schemes, DiGi continues to be at the forefront with respect to innovation in the Malaysian market.

Under Malaysia’s current New Economic Policy (NEP), Telenor will be required to reduce its ownership interest in DiGi to less than 50 per cent by year-end 2006. The NEP specifies that members of the Bumiputera community, the largest indigenous ethnic community in Malaysia must control at least 30 per cent of the ownership interest in any publicly listed company. To avoid having to reduce its ownership, Telenor will have to apply for a further extension period.

During 2005, DiGi continued to stand out as an innovative player and was the first to launch a number of new products and services. The company also offers a variation of subscription plans to meet the needs of its contract customers.

DTAC in Thailand
On 26 October 2005, Thai Telco Holdings (TTH), a 49 per cent subsidiary of Telenor, completed the purchase of a 39.9 per cent stake in United Telecommunications Industry PCL (UCOM). In compliance with relevant stock market regulations in Thailand and Singapore, TTH then launched a mandatory tender offer for all outstanding shares of UCOM and, along with Telenor Asia, a Chain Principle Offer for all of the shares of DTAC that they and their parties acting in concert, as defined by stock market regulation in Singapore, did not collectively own or control. The results of the mandatory tender offer resulted in an increase in Telenor’s economic stake in DTAC, held through TTH, UCOM and Telenor Asia, to 69.3 per cent at 31 December 2005.

The Thai Telecommunications Business Act limits the direct ownership of foreign investors in public communications licenseholders to 49 per cent of the total issued share capital.

DTAC currently holds a GSM 1800 and an AMPS 800 licence, and offers mobile voice, roaming, and value-added services to its customers through contract and prepaid subscription plans. DTAC’s non-voice services also include mobile Internet services based on WAP and EDGE.

During 2005, DTAC has continued to focus on enhancing customer services, adopting an innovative and segmented approach to ensure that the needs of individual customers in both the consumer and corporate segments are met.

GrameenPhone in Bangladesh
Telenor holds a 62 per cent ownership interest in GrameenPhone in Bangladesh, the country’s leading provider of mobile communication services. GrameenPhone currently holds both a GSM 900 and a GSM 1800 license. The Bangladeshi government has not yet announced any plans to issue UMTS licenses.

In addition to core voice services, Grameen- Phone offers a number of value-added services, on both contract and prepaid basis. These services include voice messaging services, SMS, MMS and data services via WAP. GrameenPhone’s services are widely perceived as having the most advanced and up-to-date features in the Bangladeshi market. GrameenPhone also offers the market’s widest coverage, which increased from approximately 58 per cent of the population in 2004 to approximately 85 per cent in 2005. GrameenPhone also offers GPRS in most of the country and EDGE in urban areas.

In February 2006, GrameenPhone awarded a two-year framework agreement to expand and upgrade its GSM/EDGE network. The contracted party will supply core and radio network equipment in addition to a range of other services. The contract will include Mobile Softwitch Solution and IP Multimedia Subsystem (IMS), which will enable GrameenPhone to significantly enhance network quality, performance and coverage.

Telenor Pakistan
Telenor’s wholly owned subsidiary Telenor Pakistan launched GSM mobile services on 15 March 2005, and at year-end the company had acquired a market share of approximately nine per cent. Telenor acquired the license to build and operate a mobile network in Pakistan in April 2004 at a price of USD 291 million.

In addition to basic voice services, SMS and MMS, Telenor Pakistan also offers mobile data services to all its customers. The company rolled out its GSM network rapidly during 2005 and had the fastest growing mobile network in the country during the year. The network currently being rolledout is WAP and GPRS enabled and EDGE compatible. In addition, the company holds a Long Distance and International (LDI) license though which it is providing nationwide and international call services. Telenor Pakistan distributes its services through a network of 13 own sales and service centres, 58 franchisees and approximately 18,000 retail outlets selling subscriptions and refills.