Operations
- Mobile
Mobile
Telenor is a leading provider of communications services and one of the fastest
growing mobile operators worldwide. At year-end 2005, Telenor held controlling
interests in mobile operations in Norway, Denmark, Sweden, Ukraine, Hungary,
Montenegro, Thailand, Malaysia, Bangladesh and Pakistan. Telenor also holds
minority interests in mobile operations in Russia and Austria.
In accordance with Telenor’s strategy of consolidating its position in international mobile by obtaining control of selected international mobile operations, and in order to maximize the benefit of cross-border synergies and increase overall profitability, Telenor also made new acquisitions in 2005.
In October, Telenor entered into an agreement with Vodafone Group for the acquisition of subsidiary Vodafone Sweden for a consideration of NOK 8,170 million, including assumption of debt.
Effective from 26 October 2005, Telenor increased its economic stake in Total Access Communication (DTAC) in Thailand to 56.9 per cent. Following further transactions based on mandatory tender offers, Telenor’s economic stake was raised to 69.3 per cent by year-end 2005.
Telenor’s mobile commitments in Asia and Eastern and Central Europe are becoming increasingly important and to ensure optimal follow-up, Telenor has appointed dedicated Executive Vice Presidents for these regions. Telenor has also strengthened the co-ordination of operational and human resources across all the countries in which the group has operations through the appointment of two new Executive Vice Presidents to the Group Executive Management.
During 2005, Telenor successfully extracted a number of cross-border synergies across the group. Common technologies for optimal spectrum and network utilisation have been successfully implemented at each of the group’s operations, and Telenor maintains its focus on adopting new technologies to improve service quality and reduce costs.
In order to harmonise the group’s customer orientation across all markets, Telenor has developed a common segmentation model that enables more effective targeting, while also providing greater insight into the global markets. Telenor has developed a framework that provides affiliates with a proven concept of developing target segmented offerings and optimised go-tomarket strategies.
Revenues from voice services include traffic charges, interconnection fees, and roaming charges. All of Telenor’s mobile operations derive the greatest share of their total revenues from voice services, and Telenor continues to focus on developing new products, services and initiatives to increase Telenor’s customer base and encourage higher usage.
Data services
All of Telenor’s mobile operations offer Short Messaging Services (SMS), which
enable customers to send and receive short text messages using their mobile
phones, and with the exception of GrameenPhone, all operations also offer Multimedia
Messaging Services (MMS), which enable customers to transmit graphics, video
clips, sound files and short text messages over wireless networks using the
Wireless Application Protocol (WAP).
Content services
Telenor’s mobile operations have all implemented Telenor’s Content Provider
Access (CPA) platform, which enables external content providers to supply content
to the group’s customers. Such content includes ring-tones and music, logos,
pictures, Java-based games and directory enquiries. The content providers are
responsible for the quality, pricing and marketing of such content.
Internet/intranet access
All the international mobile operations, with the exception of GrameenPhone,
have launched WAP portals that enable customers to access a number of web-based
services such as news and weather reports. Pannon, VimpelCom and Telenor in
Norway offer software for easy connection to the Internet via PC cards. A common
mobile e-mail solution was introduced across the group in 2005, with commercial
launch at VimpelCom, Pannon, DTAC, DiGi and Telenor in Norway. The solution
allows customers to access their business e-mail from their mobile terminals.
mCommerce
Several of Telenor’s operations offer mCommerce services to their customers.
Utilising a Public Key Infrastructure (PKI) secure payment system, mCommerce
allows direct access to bank accounts from mobile terminals. Customers may use
mCommerce to top-up their prepaid subscriptions or purchase products, goods
and services from companies and vendors providing mobile commerce.
International Roaming
All of Telenor’s mobile operations have entered into international roaming agreements
with a large number of telecommunications operators. These agreements enable
our companies’ subscribers to place and receive calls through other operators’
networks when travelling abroad. International visitors are offered similar
access to Telenor’s networks when they visit countries where Telenor companies
offer their services.
Wholesale
In Norway, Telenor sells network capacity to both Mobile Virtual Network Operators
(MVNOs) and service providers, whereas in Denmark such network capacity is only
sold to service providers. Both MVNOs and service providers offer services under
their own brand name without controlling radio spectrum or radio network facilities.
MVNOs purchase radio spectrum and access to core network components, but retain
control over all other aspects of the service, including traffic routing and
SIM card production. Service providers, however, buy a wider range of products
and services, including SIM cards. Both MVNOs and service providers are responsible
for their own customer service, marketing, invoicing and sales.