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Tag: Telenor

  • Airtel close to deal to buy Telenor India

    Airtel close to deal to buy Telenor India

    Bharti Airtel is reportedly in advanced negotiations to buy out Telenor’s Indian operations through a debt acquisition deal. Airtel is planning to take on debt of around 15 billion rupees ($219.6 million) from Telenor by way of payment for the purchase.

    Russian telecoms group Telenor is seeking to exit the Indian market through the deal. According to the source, third-ranked Idea baulked at a deal because the operator did not want to take on additional debt, and had offered equity instead. Telenor had also approached various other operators including Vodafone but had been unable to clinch an agreement.

    While Airtel is reluctant to increase its existing $12.23 billion debt burden, the operator was lured in  by Telenor’s 4G spectrum holdings in seven of India’s 22 telecoms circles.

    The acquisition won’t cover all Telenor’s Indian debts, and the company will have to cover the remainder, the report states.

    Telenor has been considering exiting the Indian market for some time. The operator’s efforts to establish a competitive foothold in the market were dealt a serious blow by the cancellation of its 2G licenses in 2012 as part of a supreme court decision revoking 122 licenses issued under a former telecoms minister’s regime. Telenor India never fully recovered from this setback despite purchasing new licenses in seven circles.

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  • Telenor launches mobile wallet in Malaysia

    Telenor launches mobile wallet in Malaysia

    Telenor Group has launched a new mobile wallet service in Malaysia targeted at the underbanked segments of the market.

    The service is has been built based on the Malaysian money services business Prabhu, which Telenor acquired in May.

    The service has been rebranded Valyou, Telenor’s mobile wallet brand. While Telenor was forced to shut down its Valyou service in its home market of Norway last year due to lower than expected demand, the service will live on in Malaysia.

    Valyou supports cross-border international mobile remittance including money transfers to seven countries as well as over-the-counter remittance at local retailers. It is open to subscribers from any mobile operator and supports all smartphone types.

    Valyou is currently available as and Android app and will soon be coming to iOS.

    “Malaysia ranges among the regional frontrunners when it comes to digital payments, and we are happy to expand Telenor’s financial services footprint with Valyou,” Telenor SVP and head of financial services Tine Wollebekk said.

    “Our ambition is to explore end to end digital remittance to all relevant corridors, including both Telenor’s own financial services markets – such as Pakistan, Bangladesh or Myanmar – but also to other countries that are important for the local migrant community.”

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  • Myanmar’s hyper growth era has ended according to Telenor

    Myanmar’s hyper growth era has ended according to Telenor

    Telenor Myanmar will shift focus towards data services as the era of rapid initial subscriber growth comes to a close.

    Telenor Myanamar CEO Lars Erik Tellmann told that the competitive environment is rapidly changing, with operators targeting internet service use.

    Since launching services in September 2014, Telenor Myanmar’s subscriber base has rapidly increased to 18 million, making the operator the second largest industry player. Myanmar’s telecoms market has been experiencing unprecedented growth after the sector was liberalized in 2011.

    But Tellmann said this growth has slowed significantly now that anybody who wants to own a SIM has now purchased one, so the fight is turning to existing customers. “Super hyper growth has flattened,” Tellman told.

    As of the third quarter, around 40% of Telenor Myanmar’s revenue was generated from data services. In a market with very low fixed line penetration and few PCs, smartphones are the primary way Myanmar consumers are accessing the internet, he said.

    Social media is helping drive increased data consumption, with Facebook, WhatsApp and Viber proving particularly popular in the market.

  • Telenor India said to consider merger with Tikona

    Telenor India said to consider merger with Tikona

    Telenor India is reportedly exploring a merger with wireless broadband provider Tikona Digital Networks to stay afloat in an increasingly competitive market.

    Both companies are in active discussions regarding a potential merger, citing multiple unnamed sources.

    The focus on the negotiations is a merger of the two operators’ data businesses, and Telenor’s voice operations could be kept separate, according to the report.

    Tikona holds 2300-MHz 4G spectrum and has operations in five of India’s 22 telecom circles, including three in which Telenor is also present. Telenor provides mobile services in six circles.

    A potential merger would also serve as another way for Telenor to secure the spectrum it needs to expand its operations, including effectively rolling out 4G to compete with disruptive newcomer Reliance Jio and the incumbent operators. The operator’s current spectrum holding is limited to 1800-MHz.

    In July, Telenor announced it has decided to sit out of the upcoming major Indian spectrum auction due to high reserve prices, and said the company has been “evaluating our options in India,” leading to speculation that Telenor may exit the Indian market.

    Both Telenor and Tikona have declined to publicly comment on “speculation.”

  • Telenor, MPT apply for Myanmar 2600-MHz auction

    Telenor, MPT apply for Myanmar 2600-MHz auction

    Telenor and Myanmar state-owned operator MPT have both lodged expressions of interest regarding taking part in Myanmar’s first spectrum auction in October.

    The operators are among the potential bidders for 40 MHz of 2600-MHz spectrum reserved for mobile broadband services.

    Multiple ISPs and other companies – including Yatanarpon Teleport and Myanmar Telecommunication Network – have also lodged expressions of interest regarding the auction. In total, 22 companies have applied.

    Of the total number of applicants, 20 have been accepted as potential bidders, while the applications of two were rejected due to those companies lacking the required network facilities service license.

    Selected bidders will need to meet financial and technical prerequisites, including providing a $500,000 deposit, to qualify.

    By contrast, Telenor Myanmar’s main rival Ooredoo Myanmar has elected not to participate in favor of waiting for a separate 1800-MHz auction, which the operator expects to take part later in the year.

    During the auction the 40 MHz of 2600-MHz spectrum will be divided into two 20 MHz licenses, and this will itself be divided into three separate regions. Bidders will not be allowed to win more than 20 MHz in any one region, and will only be allowed to secure spectrum in up to two regions.

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  • Telenor Pakistan launches 4G services

    Telenor Pakistan launches 4G services

    Telenor Pakistan has commenced a nationwide 4G rollout. launching services in six cities.

    The company will offer 4G services to customers free of cost as a promotional exercise in the initial launch areas, which include select locations in Karachi, Lahore, Islamabad, Multan, Peshawar and Swat.

    Customers in the cities will be able to obtain 4G SIMs at the operator’s sales and service centers and franchises.

    Telenor Pakistan plans to rapidly roll out the service to other cities in the nation, the operator said in a statement.

    “For Telenor Pakistan, this represents a huge leap forward towards realizing our ambition of bringing Internet for All and empowering Pakistan with digital technology,” the statement reads.

    Telenor Pakistan was the only bidder for 4G spectrum during a recent auction of a 10 MHz block in the 850-MHz band. The operator secured the spectrum for $395 million.

    The operator will be competing against China Mobile subsidiary Zong, which this week announced it has expanded its 4G coverage to over 100 cities nationwide.

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  • Telenor will sit out of Indian spectrum auction

    Telenor will sit out of Indian spectrum auction

    Telenor Group has revealed it will not participate in India’s upcoming spectrum auction, leading to speculation about the company’s future in the market.

    The company has decided after thorough consideration not to participate in the auction, “as we believe the proposed spectrum prices do not give an acceptable level of return,” Telenor said in its second quarter report.

    “We will continue our efforts to meet customer demands and grow the business based on the current spectrum holding. As we evaluate our options in India, we will be disciplined on capex,” the report states.

    Telenor reported revenue from India of 1.55 billion kronor ($181.9 million) in the second quarter, up 13% from the prior year. But Telenor India also reported a wider loss for the quarter of 132 million kronor, and 3.32 billion kronor for the first half of the year.

    Given that Telenor only operates in six of India’s 22 telecom circles, and exclusively holds 1800-MHz spectrum – limiting its ability to effectively roll out 4G services – Observers had considered additional spectrum to be essential to Telenor India’s ongoing operations.

    With the operator electing to sit out of the auction, some experts are speculating that the company could pull out of the market.

    By contrast, Telenor’s operations in Myanmar are already cashflow positive, the Q2 results show. Telenor Myanmar reported an operating profit of 614 million kronor, on the back of 3% higher revenue of 1.49 billion kronor.

    Telenor Myanmar added 1.4 million new mobile subscriptions during the quarter, taking its total base to 16.9 million. But ARPU in local currency decreased by 8% due to promotional spending and increased penetration in rural areas.

  • Telenor Myanmar launches 4G services

    Telenor Myanmar launches 4G services

    Telenor Myanmar has officially launched 4G services, starting in capital city Nay Pyi Taw.

    With the launch the operator has become Myanmar’s second mobile operator to launch LTE services, following Ooredoo Myamar’s debut in May.

    Telenor Myanamr CEO Petter Furberg said in addition to the debut in the capital, the company is continuing to test 4G in other cities, and will progressively roll out the technology nationwide.

    “While Telenor users in Nay Pyi Taw now can enjoy 4G services we aim to expand the service to other cities gradually. To provide high speed 4G services all over the country Telenor will need more spectrum,” he said.

    “Telenor is looking forward to participating in the spectrum auctions planned by the Union Government later this year. Due to explosive growth of data and increasing data demand by the Myanmar people we believe it is urgently required to expand our services to 4G all over Myanmar.”

    He noted that 60% of the operator’s 16 million customers are now data users, and that Telenor has Myanmar’s largest internet network with more than 5,800 towers across the country in all states and regions.

    “Myanmar is experiencing an extensive growth of mobile subscriptions and we are also witnessing higher demand for mobile data,” Petter said. “Our 4G service is one more important step in the rapid development of the Myanmar telecom sector.”

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  • Vodafone India may buy out Telenor India

    Vodafone India may buy out Telenor India

    Vodafone India is reportedly the frontrunner for acquiring Telenor’s Indian spectrum holdings and operations in a deal that could be worth over $1 billion.

    Two people close to the negotiations said that Vodafone India is pursuing the deal to help it better compete in the battle over mobile data customers.

    The sources differed over whether the deal would involve only acquiring Telenor’s Indian spectrum holdings or the company as well. But they both told the publication that Telenor India’s 1800-MHz spectrum is valued at around $1 billion.

    Spectrum is the main draw of the acquisition, but if Vodafone does buy Telenor India’s operations as well it may involve taking on Telenor India’s significant debt and try to remain the operator’s customers in key service areas.

    Vodafone currently only possess 4G spectrum in five of India’s 22 telecoms circles, whereas rival Bharti Airtel and the soon-to-launch Reliance Jio have pan-India holdings and Idea Cellular has 4G spectrum in 10 circles. Acquiring Telenor’s Indian spectrum would help even the playing field.

    Telenor India operates in seven telecoms circles, but its customer base remains relatively low after eight years of operation.

    Vodafone India has declined to comment specifically on the matter, but a spokesperson confirmed that the company is open to options including spectrum trading and M&As.

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  • Telenor wins 4G license in Pakistan for $395m

    Telenor wins 4G license in Pakistan for $395m

    Norway’s Telenor has secured a 4G license in Pakistan for $395 million as the sole bidder for an 850-MHz spectrum block.

    Telenor Pakistan will join China Mobile subsidiary Zong in holding a 4G license following the auction. The operator is seeking to capitalize on burgeoning demand for mobile broadband in a market where smartphone shipments soared 123% in the first quarter of last year.

    As of the end of April, the number of broadband users in Pakistan grew to nearly 29 million, the report states, marking a higher population penetration than India, Nepal and Bangladesh.

    Telenor Pakistan was the lone bidder for the 10 MHz block of 850-MHz spectrum, even though the auction was open to both domestic and international participants. The government had been hoping to use the auction to attract a new entrant into the market.

    The operator will be allocated the spectrum within 30 days of making its payment.

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  • Telenor launches digital health service in Bangladesh

    Telenor launches digital health service in Bangladesh

    Telenor Health, the digital health unit of the Telenor Group, has introduced a digital health service in Bangladesh.

    The company’s first digital offering, Tonic, is a mobile-based integrated digital service that includes: Tonic Jibon (life), the first Bengali-language services that provides free science-backed information on how to build a healthier and happier life; Tonic Daktar (doctor), which enables members to access medical advice on basic health topics via phone 24 hours a day; Tonic Discounts, which offers exclusive discounts up to 40% on key services at more than 50 popular hospitals across Bangladesh; and Tonic Cash, which provides members compensation if they have been hospitalized for three consecutive nights or more, paid directly to a member’s mobile banking wallet.

    Telenor said the service is being offered in the first phase exclusively to its 57 million Grameenphone customers.

    Bangladesh Health Minister Mohammad Nasim and State Minister of Posts & Telecommunication Tarana Halim attended the official launch in Dhaka.

    “Harnessing technology in order to address basic health challenges is an area of growing interest for Telenor, especially in countries like Bangladesh,” said Sigve Brekke, President and CEO of Telenor Group.

    Telenor has been present in the country since 1997 and now serves more than 185 million customers across Asia. The company established Telenor Health to scale Tonic and other digital health services to other markets upon success in Bangladesh.

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  • Telenor and Vodafone debut five-service IPX

    Telenor and Vodafone debut five-service IPX

    Telenor and Vodafone have set a new global IPX benchmark by running five separate services over a single IPX interconnect.

    The operators expanded their existing 4G signaling service to include 2G/3G signaling, direct voice, data roaming services and SMS traffic.

    With the expansion Telenor and Vodafone have become among the first operator groups to implement live multi-service IPX.

    Telenor and Vodafone will use the IPX interconnect to provide VoLTE interworking and roaming between each others’ networks. Combined the two operator group have more than 660 million subscribers worldwide.

    Telenor and Vodafone said their IPX platforms have been developed in full compliance with GSMA and i3Forum guidelines to ensure full interoperability on current and future services.

    “Both Telenor and Vodafone are leading players in rolling out 4G in their local markets. This direct IPX interconnect between our mobile groups secures a high service quality with a roam like home customer experience for all Telenor and Vodafone subscribers,” Telenor CMO of global wholesale Ronny Johnsen said.

    “We are constantly challenged by changes in our industry and such partnerships enable mobile groups to adopt new technologies and services.”

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  • Telenor confirms it may pull out of India

    Telenor confirms it may pull out of India

    Norway-based Telenor has confirmed it may exit the Indian market if the operator is unable to procure spectrum at affordable rates, as operating losses from Telenor India mount.

    Announcing its financial results, Telenor group CEO Sigve Brekke said the operator’s long-term presence in India is dependent on the ability to secure additional spectrum at a price that can be justified.

    Telenor is looking into participating in upcoming auctions and into potential spectrum trading options, but will remain open to other alternatives in case the price doesn’t justify the move. Brekke said the company is looking at all options for a sustainable business model.

    æThe news comes as Telenor India reported a substantially wider operating loss of 3.1 billion krone ($381.5 million) for the first quarter of 2016, despite an 11% increase in revenue.

    The company recorded an impairment loss of 2.3 billion krone for the first quarter of 2016 due to network equipment and spectrum depreciation.

    Indian media reports from earlier this month suggested that Telenor is considering withdrawing from the Indian market even as the operator gears up to launch LTE services across its footprint.

    As part of its LTE rollout, the company has already launched services in one city, and plans to expand this to at least 6-8 more in the next 60 days.

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  • Telenor may exit the Indian market

    Telenor may exit the Indian market

    Telenor India is gearing up to launch LTE services across its footprint, but according to reports Telenor’s days in India’s telecom sector may be numbered.

    CEO Sharad Mehrotra told that the operator has already upgraded 7,000 mobile sites to LTE.

    Telenor India plans to have its entire network upgraded by the end of the current financial year, which in India ends on March 31.

    The operator has awarded Huawei with a 12.4 billion rupee ($186.3 million) contract to modernize all 25,000 of its base stations across the six circles.

    But according to a separate report, Telenor is also considering exiting the Indian telecom market due to its negative experiences to date.

    Besides only holding spectrum in seven circles, Telenor India also has limited data spectrum and no 3G services. The company has only around a 5% share of India’s mobile market with its 2G-only operations.

    Despite investing over $3 billion since 2008 trying to build its Indian business, the loss of its Indian telecom licenses during the 2012 spectrum scandal was a setback the operator has been unable to come back from.

    According to the report, Telenor is seeking a valuation of $1.6 billion to $1.8 billion for its Indian business, but experts believe the company could find it difficult to find a buyer at this price.

  • Mobile firms splash the cash in Myanmar

    Mobile firms splash the cash in Myanmar

    Recently, Telenor launched its first nationwide karaoke contest, offering the winner a prize of 200 million kyats (about Bt5.8 million) and a chance to have the album released. Telenor and Ooredoo also distributed affordable handsets, while MPT charges only 3,200 kyats (Bt93) for 4GB night-time Internet data usage.

    All that investment appears to be worth it, as the three strengthen their presence ahead of the expected approval for a 4G rollout later this year. Market shares also matter as Vietnam’s Viettel last week won the fourth telecom licence in partnership with a local consortium.

    To the incumbent, aside from promotion, network expansion is vital, as well as points of sale.

    MPT now covers 92 per cent of the population, and aims to cover 95 per cent by the end of this month.

    Koichi Kawase, chief commercial officer of MPT-KDDI joint operations, which runs a operates 900MHz 3G service, said: “Network expansion has always been a priority in our agenda. There is no doubt that MPT boosts its leadership with over 18 million users and the largest 3G network here. We have updated our quality from 2G to 3G so we can provide clear voice and better Internet services.”

    It now has more than 80,000 points of sale.

    Serving more than 14 million subscribers – 52 per cent of who are active data users – Telenor extends its coverage to 62 per cent of the population.

    Telenor Myanmar CEO Petter Furberg, said: “We have made impressive progress in our first full year of operation with net subscriber growth of 1.9 million in the fourth quarter of last year. And our SIM market share is currently estimated to be around 37 per cent, according to our fourth quarter report,” said.

    Despite currently standing in the third place in terms of the number of subscribers, Qatar’s Ooredoo also foresees a brighter future in the booming market. It invested more than $1.7 billion in the last quarter of 2015 alone, when the number of subscribers increased by 1 million to 6 million. Its network now covers 80 per cent, set to rise to 90 per cent by the end of this year.

    “This has been made possible by our record investment in 3G technology,” said Ooredoo Myanmar’s CEO Rene Meza. He is committed to increase its investment in Myanmar in the years to come.

    Both Telenor and Ooredoo invest hugely in telecom towers as well as fibre optic networks.

    “We are thrilled that 86 per cent of our customers currently use our data services. We are seeing explosive growth in data traffic on the network, which has increased 5 times in the last year, driven by the affordability of Ooredoo Internet tariffs. We also see that data usage per subscriber, which reached an average of 580 megabytes per month in Q4, at par with what customers in Europe are consuming on their mobile phones,” he said.

    According to Meza, Ooredoo products and services are now available in over 100,000 retail outlets, in addition to more than 100 brand stores countrywide. He was pleased that a research by Nielsen shows Ooredoo having a comfortable lead in data experience over mobile Internet competitors.

    “We have made the investment, and it is working. We are connecting more data customers than ever before, who feel a real difference in data speed and overall network quality,” he said.

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