Telenor in India: Capturing growth in one of the world's largest mobile markets
(Thomson Reuters ONE) -
Today Telenor presents its updated plan for the company's operations in India,
bringing a challenging year to an end.
(Fornebu, Norway -14 December) Telenor Group executives including CEO Jon
Fredrik Baksaas and India Managing Director Sigve Brekke take to the stage at
Fornebu today to share the company's strategic direction and financial
objectives in India.
Watch the webcast of Telenor's India update here
Today's update will delve into securing spectrum in six best-performing circles,
breakeven targets and Telenor's cluster strategy and circle-by-circle approach.
Telenor plans to bring the company to operating cash flow breakeven by the end
of 2013 by executing its established strategy, while focusing on operational
efficiency.
Telenor
* Aims to be best in mass market distribution, best in servicing basic, best
in low cost operations
* Confirms operating cash flow breakeven end of 2013
* Committed to INR 155 billion peak funding
* Targets above 25% equity return on new money invested in India
"The decision by India's Supreme Court in February to revoke all our licenses
took the entire industry by surprise and we were faced with an intense period of
uncertainty for the next 10 months,'' said Jon Fredrik Baksaas, Telenor Group
Chief Executive Officer and President. "An extraordinary turnaround operation
followed and very early on we left no doubt about our intentions to stay and
secure our future operations in India. Telenor has a growth strategy and we
consider India to be one of the world's biggest growth markets for many years to
come."
India's future growth engine
The Indian operations already enjoy decent market positions in terms of
subscriber and revenue market share in all six circles and plan to further
improve this in the coming years by taking a number 2-3 position in the clusters
where we are present. Telenor's cost per minute in India is already below
incumbents'.
Telenor has the potential to reach every second person in India, after securing
its license to operate in six telecom circles. These circles are home to more
than 600 million people. The circles are among the most populous regions in the
country and strong economic growth is expected to continue. The footprint also
has the lowest mobile penetration in India; with real penetration estimated to
around 40% at the end of 2012. This represents a significant growth opportunity
in terms of acquiring new subscribers and there is significant room for growth
in basic voice services.
Telenor announced last month that Uttar Pradesh East became its first circle to
achieve break-even, three years after the launch. The company expects its
remaining circles to begin achieving the break-even targets in the months to
come and Gujarat and Maharashtra are expected to break even in early 2013.
Telenor has secured 5 MHz spectrum UP East, UP West, Bihar, Andhra Pradesh,
Gujarat and Maharashtra in the recently concluded auctions. In combination with
the planned business transfer from Uninor to a new entity, this allows Telenor's
India operations to continue seamlessly in the new company for a period of 20
years.
"We are ready to move forward in India," said Sigve Brekke, Managing Director of
Telenor's Indian operations. "We will continue to position our brand as the best
price on local voice, to drive subscriber growth and increase customer loyalty
in India as part of our continuous efforts of cost efficiency. Our operations
are built around people, and it is the courage and strength of our employees
that will drive our future growth and development and further broaden our
distribution network. "
Contacts:
Media:
Tor Odland, Vice President, Group Communications, Mobile: +47 9909 0872, E-mail:
tor.odland(at)telenor.com
Analysts and investors:
Marianne Moe, Head of IR, Telenor Group, Mobile: +47 916 17 631 , e-mail:
marianne.moe(at)telenor.com
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Telenor via Thomson Reuters ONE
[HUG#1664936]
Unternehmensinformation / Kurzprofil:
Datum: 14.12.2012 - 08:04 Uhr
Sprache: Deutsch
News-ID 212837
Anzahl Zeichen: 4928
contact information:
Town:
OSLO
Kategorie:
Business News
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