Telenor cuts mobile prices by NOK 120 million

Today, it is more expensive for Telenor that a Telenor customer places a call in NetCom's or other competitors' networks than the other way around. This is due to regulations made by the Norwegian Post and Telecommunications Authority. The Norwegian Post and Telecommunications Authority has now decided to partly remove this imbalance, which has been unique to the Norwegian mobile market. The downward adjustment was planned implemented today. As a result of the downward adjustment, the Norwegian termination charges will from now on be more in line with European termination charges.

"As promised earlier, we have decided to lower prices when changes are made in the regulatory imbalance which has applied to the Norwegian market, said Executive Vice President Morten Karlsen Sørby, head of Telenor's Nordic operation. "Reductions of termination charges will benefit consumers. Telenor will continuously adapt prices according to what we expect will be the new termination charge regime in Norway, and our customers can look forward to eventually having equal termination charges," said Morten Karlsen Sørby.

The total savings of NOK 120 million is based on annual numbers - i.e. on the number of customers today and the way they use mobile services today. At the same time, Telenor makes changes in the fixed prices, corresponding to the changes in termination charges. These prices have been made public today in a public notice.

Netcom has not wanted to comply with the decision made by the Norwegian Post and Telecommunications Authority, and has in the Oslo public registrar (Oslo Byfogdembete) asked for a delay in the imposition of reduced termination charges. The request was not approved Friday 28 September, but will be resumed on Tuesday 2 October. Telenor will not adjust the prices if the court sustains NetCom's claim.

Friday 29 September, the Ministry of Transport and Communication approved Tele2's claim for postponed implementation of the new terminations charges. Telenor understands that the decision is a result of Tele2's announcement that they will invest in their own mobile network. If the conditions of Tele2's termination charges are changed in the final decision by the ministry, Telenor will change its prices accordingly.

About the mobile termination charges
Until 1 October, the cost of a call from Telenor to NetCom was NOK 0.91 per minute, whereas the price for a call from NetCom to Telenor was NOK 0.65. Today the prices are reduced to NOK 0.70 respectively NOK 0.60.

According to the decision made by the Norwegian Post and Telecommunications Authority, further reductions will be carried out in the years to come, so that the imbalance between NetCom and Telenor will be removed, the difference between Telenor and Tele2 will be reduced, and the general price level will be lowered.

For further information, please contact:

Pål Kvalheim, Vice President Communications
Telephone (+47) 970 44970