Company’s Profile:

Telenor has international operations in the areas of mobile telephony and satellite operations
in more than 12 countries. Its area includes Nordic region (Denmark, Sweden and Norway),
Eastern and Central Europe (Hungary, Serbia and more) and Asia (Malaysia, Bangladesh,
Pakistan, Thailand).
Asia is a major contributor to Telenor’s Success: The article states that “Whereas two
years ago, approximately 40% of its customers were from Scandinavia, this figure has fallen to
about 10% as of September 2006. In contrast, Asia, where it only had operations in Malaysia
(DiGi) and Bangladesh (Grameen Phone) at the beginning of 2004, now accounts for over half
of Telenor’s entire wireless subscriber base.”
Telenor Company launched GSM mobile services on 15 March 2005.Company acquired the
license to build and operate a mobile network in Pakistan at a price of USD 291
million. Currently total investment is around USD 1 billion with a market share of 11%.
According to telecom analyst’s entrance of Telenor and Warid intensified competition
in Pakistan mobile market. Both Mobilink and ufone were comparatively slow.
Latest Earnings:
In the third quarter of 2006, Telenor’s overall revenues amounted to NOK 23.9 billion, which
was an increase of 35% compared to the third quarter of 2005. Profit before taxes was NOK
6.1 billion.
One year net profit margins were about 16%, better than the industry average of 11%.
Highlights from Telenor Pakistan 3Q Earnings Report
• Telenor – Pakistan experienced a significant growth in the number
of subscriptions with net additions of 1.4 million during this quarter
alone.
• Telenor – Pakistan’s estimated market share increased further by
1 percentage point to 11% from the previous quarter.
• ARPU in local currency decreased by 9% compared to the second
quarter of 2006 primarily due to a reduction of interconnect charges
from 1 July 2006.
• Compared to the second quarter of 2006, total revenues in local
currency increased by 25% mainly due to subscription growth
partially offset by reduction in ARPU.
• Compared to the second quarter of 2006 there was a positive
development in EBITDA, mainly due to higher revenues.
• The increase in capital expenditure was related to the roll-out of
the mobile network.
• 1 July 2006, following a decision made by the regulator, the interconnection
charges of mobile operators were reduced from PKR 1.6
to PKR 1.25 per minute. At the same time the charging principle was
changed from per minute to per second charging.