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TELENOR

Telenor posts second quarter profits

Norwegian telecom company Telenor on Tuesday announced a 25.7 billion kroner ($4.3 billion) profit for the second quarter of 2013, citing strong growth in Asia while also grumbling about regulatory obstacles in Bangladesh and India.

Published: 23 July 2013 11:21 CEST
Telenor posts second quarter profits
Telenor CEO Jon Fredrik Baksaas. File photo: Berit Roald/Scanpix

“Telenor’s geographical footprint covers both advanced and growing economies, offering growth opportunities and profitability as demonstrated in the second quarter. At the same time, regulatory issues remain a challenge, particularly visible in Bangladesh and India during this period,’’ CEO Jon Fredrik Baksaas said in a statement. 

In the second quarter, Telenor added five million new subscribers in Asia.

The company credited solid growth in Thailand, "as our customers embrace new services enabled through 3G", while traditional markets Norway and Sweden also saw an increase in subscription numbers. 

Telenor also underlined that it was adding Myanmar and Bulgaria to its markets, through its successful bid for a Myanmari telecom licence that was nonetheless waiting for revision to the country's telecom laws. Meanwhile, the Norwegian company snapped up Bulgaria's second largest operator Globul, a move approved by the European Commission. 

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TELENOR

Norway’s Telenor sells out of India as tycoon weighs in

Indian telecom giant Bharti Airtel will buy the local operations of Norway's Telenor, it said Thursday, as the ultra-competitive mobile market is shaken up by the country's richest man.

Published: 23 February 2017 20:26 CET
Norway's Telenor sells out of India as tycoon weighs in
Former Telenor CEO launching the company's ill-fated India business in 2009. Photo: peerdahl/Wikimedia Commons
Tycoon Mukesh Ambani launched Reliance Jio's 4G network in September with an audacious free service for the rest of 2016, followed by vastly cheaper data plans and free voice calls for life.
 
The move forced rivals to slash their tariffs and scramble to match the deep pockets of Jio, which is backed by Ambani's vast energy-to-chemicals conglomerate Reliance Industries and picked up 100 million subscribers in its first six months
   
Bharti's acquisition is the latest movement towards consolidation in India's telecoms sector as major players try to position themselves to best face the tough new environment.
   
The move, which still needs to be approved by regulators, will enhance its coverage, the company said in a statement to the Bombay Stock Exchange (BSE), and see Telenor exit India.
   
“The proposed acquisition will include transfer of all of Telenor India's assets and customers, further augmenting Airtel's overall base and network,” the Indian firm said in the statement.
   
Last month British mobile phone behemoth Vodafone announced that it was in talks to merge its Indian unit with Mumbai-based Idea Cellular in its own move to counter Jio's rise.
   
That deal would create India's largest telecoms company. Global brokerage firm CLSA estimated that the pair would command a combined 43 percent share of market revenue, ahead of Airtel, which is currently the market leader, on 33 percent.
 
Reliance Communications — owned by Ambani's brother Anil Ambani — and Tata Teleservices, part of the sprawling salt-to-steel Tata conglomerate, are also reportedly in talks to join forces.
   
Reliance merged with telecom operator Aircel in September last year. Bharti Airtel's shares surged more than five percent in Mumbai morning trade following the Telenor deal announcement.
   
“The decision to exit India has not been taken lightly,” Sigve Brekke, Telenor Group CEO, said in the statement.
   
“After thorough consideration, it is our view that the significant investments needed to secure Telenor India's future business on a standalone basis will not give an acceptable level of return,” he added.
   
Telecoms analyst Baburajan Kizhakedath said Telenor was quitting India because the intense competition meant there was no scope for growth. “The Airtel-Telenor deal is probably the best exit route for Telenor,” he told AFP.