Economic contribution to society
Telenor is a long-term owner, employer and taxpayer in the markets where we operate. Telenor’s operations contribute with tax revenue, employment and investments and our industry drives crucial societal digitalisation. Contributing positively to societies where we operate is a key component in building trust in Telenor and creating a predictable and productive business environment. Together, these elements improve our value creation prospects in all areas in which we are present.
We are committed to working with governments and regulators to secure modern policy frameworks, ensuring that everyone can derive the full benefit of a digital society. We have public policy positions on cyber security, spectrum, tax, privacy and data protection, net neutrality, free flow of data and e-SIM and aim to be open and inform about these policies.
Telenor supports efficient use of radio spectrum resources for the increasing demands for mobile broadband capacity. Telenor employs local vendors for network rollout and civil works, or alternatively buys network capacity from local tower companies.
In 2020, Telenor’s investments, excluding licences, spectrum and lease, amounted to NOK 16.4 billion (17.4 billion in 2019), from a total revenue of NOK 122.8 billion (NOK 113.7 billion in 2019), with a resulting investment ratio of 13.4 per cent (15.3 percent in 2019).
Telenor is a significant investor in the five Asian countries in which it operates. Connecting 172 million customers in Asia, Telenor contributes to direct and indirect value creation through long-term investment. In 2019, Frontier Economics published a study that quantified Telenor’s direct and indirect value creation in five Asian markets. Direct value added was estimated along global national accounting conventions.
In mature Asian markets and in the Nordics, Telenor strives to build economic value by creating opportunities within 5G, IoT, AI and other advanced digital services.
Telenor also stimulates increased value creation in other companies and sectors by investing in infrastructure, buying local goods and services, and raising their productivity via digitization. Telenor also pays substantial regulatory fees and indirect taxes on products and services, such as Value Added Tax (VAT), General Sales Tax (GST), customs duties, service taxes and revenue sharing.
Our tax policy and practice
Another economic contribution is made through tax. Telenor Group maintains responsible tax policy and practices in line with legislation in every jurisdiction of operation, and we have reported our country-by-country earnings, investments, taxation and employment since 2014. We are in constant dialogue with the relevant authorities regarding tax, for instance on whether we need to adapt to new legislation.
Our tax policy and practice is in line with legislation in all our markets. Telenor Group follows the terms of applicable Double Taxation Treaties, relevant OECD guidelines in dealing with transfer pricing and establishing taxable presence, and the BEPS (Base Erosion and Profit Shifting) initiatives. We endorse the aims of transparency and fairness across the global tax system, exchange of financial information and concerted action to fight base erosion and profit shifting.
The following table specifies the most important elements of Telenor’s direct economic contribution country-by-country. It includes Telenor’s revenues, capital expenditure, EBITDA and the corporate income taxes paid in 2020. The table does not specify all taxes and fiscal levies – only corporate income tax (CIT) is included.
|Financial year 2020 million NOK||Revenues||Capex||EBITDA||Profit before taxes||Corporate income tax (CIT)||Man-years per 31.12.2020|