THE NORDIC REGION
Sweden
Following the acquisition of Vodafone Group’s Swedish mobile operation on 5 January 2006, our wholly-owned subsidiary, branded Telenor, is the third largest mobile operator in Sweden with an estimated market share of 17%.
Telenor in Sweden offers voice and non-voice services to both the consumer and business segments.
Licenses and network
Telenor in Sweden currently holds 3 licenses: a GSM 900, a GSM 1800 and a UMTS license. Under the terms of the UMTS license, we are required to provide network coverage to 97% of the population (8.9 million people) by 1 June 2007. As of 31 December 2006, we provided coverage to 96% of the population.
Telenor seeks to position itself as an operator with a unique customer focus, offering simplicity and user-friendliness. During 2006 efforts to combine the mobile, fixed-line and broadband solutions offered by Telenor subsidiaries in Sweden in one service concept have been initiated. Providing a single point of contact for customers for these services will be a main task during 2007.
Retail
Telenor has its own distribution channel, Telenor Stores in Sweden. There are today 60 Telenor Stores situated all around Sweden with a focus on the densely populated areas. We have a distribution strategy to increase the use of low-cost channels, like our own stores, and to enter into direct agreements with customers, both in mobile and broadband.
| Telenor Sweden | 2004 | 2005 | 2006 |
|---|---|---|---|
| No. of mobile susbscriptions (in millions) | 0.11 | 0.09 | 1.73 |
| - of witch prepaid | 0.06 | 0.05 | 0.55 |
| Av. traffic min. per subscription per month (AMPU) | 95 | 132 | 181 |
| Av. revenue per subscription per month (ARPU) | 175 | 158 | 245 |
| EBITDA/Total revenues (%) | 18.5 | ||
| Capex | 17 | 608 | |
| Market share GSM (%) | 17 | ||
| Mobile penetration (%) | 105 | 110 | 111 |
> Regulatory matters
> Further discussion and analysis
THE FIXED-LINE MARKET
Telenor provides telephony, IP-based and data communication services and advanced network services to the business and wholesale markets in Sweden. We also provide high-speed internet, VoIP, IP-TV and add-on broadband services to the Swedish residential market through our wholly-owned subsidiary Bredbandsbolaget. Bredbandsbolaget has 369,000 subscriptions as of 31 December 2005, representing a 20 per cent market share.
Telenor also has a 98.0% ownership interest in Glocalnet which on 23 November 2006 reached an agreement to acquire all of the outstanding shares in Spray Telekom AB. Including Bredbandsbolaget, Telenor now has a market share of approximately 30 per (%) cent of the total broadband market in Sweden and approximately 12 (%) per cent of the total fixed-line voice market.
| Fixed-Sweden | 2004 | 2005 | 2006 |
|---|---|---|---|
| EBITDA/Total revenues (%) | 15.9 | 12.1 | |
| Capex | 279 | 485 | 582 |
| Bredbandsbolaget | |||
| No. of xDSL subscriptions (in thousands) | 214 | 278 | |
| No. of LAN subscriptions (in thousands) | 155 | 172 | |
| No. of VoIPsubscriptions (in thousands) | 104 | 161 | |
| Glocalnet | |||
| No. of xDSL subscriptions (in thousands) | 125 | ||
| No. of PSTN subscriptions (in thousands) | 257 |
> Further discussion and analysis
Market data
Sweden- Population (2005, in million): 9.0
- Land area (sq KM): 410,934
- Population per sq KM: 22
- Population growth (%) av.2001-2005: 0.4
- GDP per head (US$): 39,532
- GDP per head (US$) purchasing power parity: 32,619
- Real GDP growth (%) av. 2001-2005: 2.2
- Inflation (%) av.2001-2005: 1.5
Market share 2006
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Total Mobile Market
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