Assignment: 1

Topic: Telenor group

Submitted by: A Z M Tanvir Shahriar

ID: 2019-1-50-004
Subject code: BUS101
Subject name: Subject Introduction to Business
Section: 2

Submitted to:
DR Salma Akter FHEA

Submission date: 05.08.2020

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 Telenor group
Introduction:

Telenor Group is an international provider of tele service, data and media communication
services. It is a Norwegian majority state-owned multinational telecommunications company
headquartered in Baerum, Norway. It is one of the world's largest mobile telecommunications
companies with operations worldwide, but mainly focused in Scandinavia and Asia region. It is a
leading telecommunications company with 182 million customers and annual sales of around
USD 12 billion (2019). Telenor's Sigve Brekke is among the 14 CEOs from five Nordic
countries on a mission to accelerate the Sustainable Development Goals. It is also known as
Grameenphone, which is counter part of Telenor group in Bangladesh and it is the leading
telecommunications service provider in Bangladesh, with more than 74 million subscribers and
46.3% subscriber market share. Grameenphone, widely abbreviated as GP, is a joint venture
between Telenor and Grameen Telecom Corporation.

Company profile:

Telenor group has long history of business in mobile industry. At the very beginning, Telenor
started off in 1855 as a state-operated monopoly provider of telegraph services named
Telegrafverket. At that time, telegraph was most important for the merchant marine who now
could use the electric telegraph to instantly communicate between different locations, and get a
whole new advantage from better logistics.

Fi
gure1: Telegrafverket

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Then in 1878, The first telephone service in Norway was offered between Arendal and
Tvedestrand, while the first international telephone service between Christiania and Stockholm
was offered in 1893 which was distributed by the company. The corporation changed its name to
Televerket in 1969.

Figure 2: Implementation of the first telenor telephone service

In 1994, then the Norwegian Telecom was established as a public corporation. During 1999 the
corporation was partially privatized and this privatization gave a break through. As of 2014, the
Norwegian government holds 53.97% of the Telenor shares directly and another 4.66% through
the Pension Fund.[website]

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Telenor group has a leading Nordic position in mobile, broadband and TV services, as well as
substantial activities in subsidiaries and joint venture operations, including mobile financial
services and online classifieds in the Asia region. It has extensive broadband and TV distribution
operations in four Nordic countries, and a 10-year-old research and business line for Machine-to-
Machine technology. Telenor owns networks in 9 countries and these countries include Norway,
Sweden, Denmark, Finland, Pakistan, Bangladesh, Thailand, Malaysia, Myanmar. Worldwide,
Telenor Group team have 19,000 people strong.

Figure 3: Telenor services in different region

Here is a table of Telenor group in different name in different regions of Asian and European
countries:

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 Country Operator Native name
Bangladesh Grameenphone গ্রামীণফোন
Denmark Telenor Denmark Telenor
Finland DNA DNA
Malaysia DiGi digi
Myanmar Telenor Myanmar တယ်လီနော
Norway Telenor Norway Telenor
Pakistan Telenor pakistan
‫ٹیلی نار‬

Sweden Telenor Sverige Telenor

Thailand dtac ดีแทค

Now, In this table the whole overview of Telenor Group is shown.Including Revenue and
growth:

NOK in million 2019

Revenues 113,666
Organic revenue growth (%) 1.2
Subscription and traffic revenues 85,954
Organic subscription and traffic revenue 0.4
growth (%)
EBITDA before other income and other 50,735
expenses
Organic EBITDA growth (%) -2.7
EBITDA before other income and other 44.6
expenses/Revenues (%)
Net income attributable to equity holders of 7,773
Telenor ASA
Capex excl. licences and spectrum 17,415
Total Capex 18,075
Free cash flow before M&A 3,831
Total Free cash flow -18,998
Mobile subscriptions – Change in quarter / 186.0
Total (mill.)

Grameenphone was the first Telenor venture in the Asian telecom market and is now the largest
mobile operator in Bangladesh. The company CEO is Yasir Azman. Grameenphone became
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stock listed in November 2009. It is listed on both the Dhaka and Chittagong Stock Exchanges.
As of 31 Dec 2017, Telenor held 55.8% of the shares in Grameenphone, while Grameen
Telecom, the other main shareholder, held 34.2%. The remaining 10% of the shares were held by
general retail and institutional investors. Grameenphone is the largest of four mobile operators in
the country with 76.462 million mobile subscriptions. It has 2303 employees with total revenues
of NOK 14.980 billion.

Grameenphone, part of the Telenor Group has Over 22 years of operations in Bangladesh,
Grameenphone has taken telecoms and digital services to the people – giving access to digital
solutions for education, information, entertainment, commerce, financial services, healthcare &
other social needs. The company takes an active role in enabling innovation and building digital
ecosystem in Bangladesh. We are also partnering with global and local development agencies to
support UN SDG #10 towards reducing inequalities.

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PESTLE Factors:

PESTLE analysis describes a framework of macro-environmental factors used in the

environmental scanning component of strategic management. Here is a PESTLE analysis of the
Telenor Group.

Political factors:

In this matter, the regulation issues come up frequently. The government has one idea how
telecoms should be handled. The people have another.

Wi-Fi and internet are a daily part of life. Customers wish the government to acknowledge the
internet as a basic human right. It’s required for education and many careers. Even applying to a
job is an online experience; going to a company website and uploading a resume on their servers
is essential.

A battle for and against net neutrality is raging. Customers believe internet and data should be
treated the same by service providers and the government. Net neutrality would prevent, for

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example, service providers from throttling internet and data speeds. This is a big political fight
between government, service providers, and the people.

Economical factors:

Interest rates, inflation, and taxes affect the telecommunication industry. Expenses affect the
pricing per plan offered to customers too. It’s expensive to build towers and resources in rural
areas. Customers who don’t live in big cities are affected.

As more houses are built, the need for telecommunication resources increase. This can drive
prices (plus revenue) up depending on location, amount of customers in an area, and the need for
telecommunication services.

Growth is dependent on the market (customers) and technological advancements. Businesses are
using the internet and mobile phones for marketing. They create social media pages,
advertisements on sites, and digital marketing campaigns to reach customers around the world.
For this reasoning, jobs are opening up and increasing in the telecommunication industry.

Customer service representatives are hired to solve problems via website live chat. Marketers,
writers, and media managers handle online marketing and campaigns. Graphic designers and
programmers are necessary to create websites for computers and mobile users. The need for
everything to be available and accessible 24/7 is growing rapidly.

Social factors:

Telecommunications horizontal growth is limited. Specifically, it’s difficult (and expensive) to

expand in rural regions. Customers are left with less than a handful of options when it comes to
buying internet, mobile, and television packages.

Because telecommunication corporations are monopolies, they’re in charge of both internet and
mobile carriers. Customers need these packages to communicate with friends, partake in social
media challenges, buy products online, find stable careers and more. Telecommunication has
become a vastly important aspect of the daily life of the average person.

Technological factors

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Both needs and requirements for telecom services are advancing. For example, telephone
companies install fiber wire in their builds over copper now. Phones are becoming more
compact, moving the telecom business into a primarily wireless business.

Basic needs in smartphones, like voicemail, caller ID, and messaging are covered. Now people
want internet access on the go. So, data is added to mobile plans. Wi-Fi has been built into buses
and cars too.

This ‘need’ leads to more investments in companies who hold a strong influence over telecom
developments in computers, smartphones, and laptops.

Legal factors:

The telecommunication industry is often impacted by legislation issues. Particularly issues with
the government, monopolies, and customers. But the industry has allowed importing and
exporting of telecom products (international smartphones, for example). Allowing more
development in telecom tech devices.

Environment factors:

Climate changes and global warming can affect how telecommunication products reach
customers. In terms of employment, with technology advancing, employees need to adapt to
changes.

Products come and go, often replaced by something ‘better’ (depending on who is asked,
customer or company). The previous version becomes redundant or unnecessary. Which means
people who worked on a previous version may now be unemployed.

Customers demand and telecom companies are expected to deliver. But with needs in the
telecom industry changing often, it’s not guaranteed which technology will stay, be advanced, or
discarded.

Recommendation:

Providing a capability for overcoming barriers of distance and time, telecommunications is an

essential element of the infrastructure for operation of Bangladesh economy and society. Many
Bangladeshi companies indeed whole new industries have benefited from and even developed as

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a result of Telenor’s strength in telecommunications. Notably, the modern Internet and Internet-
based businesses ranging from Google to Yahoo would not have been possible without past
telecommunications research leading to such advances as high-speed optical communications
and packet-switched networks which was developed by Telenor group effectively.

Today, however, the position of the Telenor group as a leading producer of telecommunications
technology, basic knowledge, and necessary human talent is at risk. The risk is magnified by the
long period of time as much as a decade or even longer that it can take to translate a fundamental
discovery or big new idea into a commercial product or service or to educate and train a new
researcher.

The committee’s findings below outline challenges to the telecommunications sector’s

continuing capacity for innovation. The recommendations that follow identify actions that
Telenor’s telecommunications industry, research community, and government should take
together to strengthen the nation’s telecommunications research institutions and programs in
Bangladesh and worldwide.

Conclusion:

As a result of the liberalization, privatization initiatives taken by the government of Bangladesh,

the telecom sector is experiencing a historical growth. The trend is expected to continue in the
segment, as prices are falling as a result of competition in the segment. The beneficiaries of the
competition are the consumers, who are given a wide variety of services. In the years to come the
country is predicted to witness a communication revolution, which would increase the subscriber
base to match that of the developed world. The need of the time is a new revolution in telecom
services and it is imperative that service providers work towards the same and make it a reality.
An important contribution of this study is how marketing strategy is developed and sustained
over different target market in telecommunication sector. The future commitment of the
customers to organization depends on perceived marketing element. The issue and challenges is
therefore increasingly recognized as a critical success factor in the emerging scenario.

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