Our drive for change
2006 was another outstanding year for Telenor. Our operations generated an overall revenue growth of 37 per cent. During the year we added 32 million new mobile subscriptions, and at year-end Telenor provided mobile communications to more than 115 million customers in 13 countries. We fully expect the underlying growth to continue in 2007.
New Telenor brand
For me, the launch of the new Telenor brand was one of the highlights of 2006. The iconic visual identity has now been adopted by ten operations in eight countries. The new brand is based on our solid platform of vision and values that we developed in 2005. We now observe that the new brand is making us more effective in each local market while it also builds strength at group level.
Our relentless efforts to coordinate activities across national operations enable us to leverage scale and scope as we continue to make the most of our strong local positions. Each team player has different qualities, and as we go forward we will continue to combine local understanding and know-how with the joint strengths that make us a global force in the telecommunications industry.
Turning businesses around fast
At our Swedish operation, acquired in 2005, cost levels are now significantly down and successful retention efforts have reduced churn and raised profitability. Once again, we have proved that we are capable of turning businesses around fast. On 1 September 2006, we completed the acquisition of Serbia's number-two mobile operator. In a matter of weeks the operation was re-branded, re-located to new premises, and an aggressive new management was in place.
Value added services to new customers
In 2006, we took further steps to bring value added services to new customers, including the financially constrained. In Bangladesh, where only a small percentage of the population enjoys access to regular banking, Grameenphone's BillPay allows customers to pay their electricity bills using mobile technology. Also in Bangladesh, the interactive HealthLine service, awarded "Best use of Mobile for Social and Economic Development" at this year's 3GSM conference in Barcelona, enables customers to consult licensed physicians about any health-related issue over the mobile phone.
The mobile handset is the key platform of the future
New technology brings opportunities as well as challenges. The migration from traditional fixed-line to voice over IP and mobile will accelerate. We are confident that the mobile handset is the key platform of the future. We are working hard to empower customers - enabling them to perform previously time-consuming tasks quickly and efficiently on their mobiles. To be successful, we must not only stay abreast of developments; we must understand what people really want and drive the changes ourselves.
Jon Fredrik Baksaas
President and CEO
