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Published on November 14th, 2006 | by Babar Bhatti

26

Telenor Pakistan: Profile and Outlook






telenorContinuing the series of posts on Pakistan’s mobile companies, this one will present a snapshot of Norway based Telenor ASA. Telenor has international operations in the areas of mobile telephony and satellite operations in more than 12 countries. Its global footrpint 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. According to a recent article in Telecom Insight, Norway’s Telenor is becoming an increasingly significant global mobile player. 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’s wholly owned subsidiary Telenor Pakistan launched GSM mobile services on 15 March 2005. Telenor acquired the license to build and operate a mobile network in Pakistan in at a price of USD 291 million. Currently total investment is around USD 1 billion with a market share of 11%.

According to telecom analysts entrance of Telenor and Warid intensified competition in Pakistan mobile market significantly. Both Mobilink and Ufone were slow to respond with the result that Warid and Telenor made substantial gains in market share. This shows the growth potential of Pakistan’s mobile market.

An example of increased competition in Pakistan is SMS. When Mobilink introduced Octane, Telenor reciprocated with Djuice with even lower rates for text. Telenor also introduced 30 second billing which in my opinion ended up confusing many consumers. Telenor has also introduced EDGE data services which should contribute to better revenues and it may lead the way to 3G services in Pakistan.

telenor

In conclusion, Telenor has shown stellar growth and I believe it is a great investment choice. Read on to understand the basis of my opinion.

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.

How to invest
Telenor is traded on NASDAQ as ‘TELN’ and also in Oslo stock market. See these websites for more info:
  o Stock snapshot 
  0 Telenor on JP Morgans website*

For another view point and details about Telenor’s subscriber numbers & market share visit this site

*About ADR:
An American depositary receipt (ADR) is a stock that trades in the United States but represents a specified number of shares in a foreign corporation. ADRs are bought and sold on American markets just like regular stocks, and are issued/sponsored in the U.S. by a bank or brokerage.


About the Author

Founder and Editor of TelecomPk.net



26 Responses to Telenor Pakistan: Profile and Outlook

  1. sohaib says:

    im frm okaraa

  2. sohaib says:

    my friendz said telenor is best but i think ufone is best sorry telenor.
    bcoz ufoe walo na mjy itna acha number bohat kam paiso me dia lakin shyd telenor wale esa na krte…
    its my no.0333-63-2-64-65.
    sorry

  3. Azhar Sukhera says:

    Telenor is a good connection but there is always problem of low signals every where any time.

  4. Adeel says:

    Where can I get the full ‘Telenor Pakistan 3Q Earnings Report’ rather than the summary or commentary as given above? If anyone has any link, please email it to me:

    adeeltkhan@hotmail.com

  5. Zakaria says:

    Computer software is a general term used to describe a collection of computer programs, procedures and documentation that perform some tasks on a computer system. The term includes application software such as word processors which perform productive tasks for users, system software such as operating systems, which interface with hardware to provide the necessary services for application software, and middleware which controls and co-ordinates distributed systems.

  6. PIr Hamed says:

    telenor is my best connection
    03449312875

  7. Maniag says:

    Any one helpf me out how to get free sms from mobile and retrive the call history details of pakistani operatores.
    thanks

  8. Atiii says:

    TEllEEnor CaN SuCCk My DicKK HARDDDddd…..03436755577

    i m from okaRRRaa TeLenor Iz \FuCkin Shit FrOmmmm DenmARk…AssHoleZZ

  9. jamshed says:

    Mobilink is the best compnay in PK

  10. Abrar Sahar says:

    EAST NOR WEST
    TELENOR IS THE BEST

    I LOVE TELENOR
    Telenor dijuice best

    […] information centres offer all modern communication facilities under one roof. The services use Telenor Pakistan’s high-speed EDGE

    I m Ibrar Sahar
    from District Okara
    03444333668
    03334102017
    03227002474
    03444333006

  11. Umar dar says:

    Telenor dijuice best
    0344 430-6-431

  12. Saleem Ahmed Khan says:

    EAST NOR WEST
    TELENOR IS THE BEST

    I LOVE TELENOR

  13. telenor is the best connection in World

    0345-3181216

    Nick: MaNi !

  14. i love telenor dijuice

  15. Pingback: State of Telecom Industry in Pakistan » Telenor Rabta Centers

  16. Anonymous says:

    My Village name Pir Baba Distt, Buner telenor is the best connection in pakistan
    My Email : nasarkhan733@yahoo.com
    nasarkhan733@yahoo.com
    0346_9442070

  17. Anonymous says:

    My Village name Pir Baba Distt, Buner telenor is the best connection in pakistan

  18. Anonymous says:

    I love you Telenor ??

    Please any Telenor Customer call me my Number is 0346_8121612

  19. Anonymous says:

    I love TELENOR!!! it is the best ever mobile connection/Service.

    For the first time it also introduced EDGE,Mobile TV,Cellinfodisplay and A lot more…

    telenor is the best connection in pakistan

  20. Anonymous says:

    I love TELENOR!!! it is the best ever mobile connection/Service.

    For the first time it also introduced EDGE,Mobile TV,Cellinfodisplay and A lot more…

    PLZ visit my site: mAsTipk.Co.Nr , it contains the rich history,profile etc of Mobile Companies!
    For more information:0345-4743265(OR)0321-4112517

  21. Anonymous says:

    telenor is the best connection in pakistan

  22. Anonymous says:

    i love u

  23. Anonymous says:

    Telenor holds 14% of market share at present and believes that it could take it up to 35% by 2009. Interestingly, Telenor took about 50% of net adds in Q4 06 (no mean feat). ARPU stands around USD 4.5.

    Would break even in Pak operation around H1 07!

  24. Anonymous says:

    Just setting some facts straight:

    Octane is hasty copy of Djuice.

    And while 30 sec billing is confusing for the customers because their minds have been conditioned to accept one minute billing.

  25. Anonymous says:

    Telenor ,Ufone and Warid are the best companies in Pakistan.

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