Telenor: “Digital and data growth is phenomenal”

Norway’s Telenor is a telco giant with business telephony interests throughout the world as well as Scandinavian subsidiaries such as Canal Digital (pay-TV), Conax (conditional access), Norkring (TV distribution) and its Telenor Satellite Broadcasting division.

Group CEO Jon Fredrik Baksaas has told analysts that Telenor saw “immense developments in our industry. The world goes digital basically and the data growth is phenomenal. This requires heavy investments to keep that – to entertain that capacity growth, but on the other side we as operators in this huge ecosystem also need to shelter these investments in our business models going forward.

“And there is only one way of doing that and that is to follow the customer demand and customer preferences and customer behaviour,” he added. “So telcos needs to focus on the service side of or the IP generation so to speak and this is happening fast. And it’s happening at a pace which we haven’t seen before. I anticipate that we will see a lot more to this when we go to Barcelona in the end of February to look about the general trends in the industry in general.”

With this in mind, Baksaas explained that Telenor is changing how it operates.  “As a consequence, we are putting all our efforts in understanding customer behavior and to align our offerings accordingly, and to bring balance between how invest in order to reflect that also in the business models. And we have achieved that very, very well in Norway, that doesn’t necessarily mean that we will be successful in all other markets, but the underlying investment structures needs to have revenue streams in order to develop in a robust way going forward.”

Chris Forrester Posted by on Feb 15 2013. Filed under Guest Blog, Inside Satellite.

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