Svein Aaser elected new Chairman of the Board of Telenor (Norway)
Svein Aaser has been elected as the new Chairman of the board for mobile operator Telenor. Svein Aaser was CEO of Den norske Bank and DnB NOR from 1998 to 2007. He was previously CEO of Nycomed from 1987 to 1996. He has also been the CEO of Storebrand Skade, Nora Matprodukter and Stabburet Nora. He has served as president of The Confederation of Norwegian Enterprise (NHO) and as Chairman of Finance Norway (FNO). Today, Aaser is the Chairman of the Board of Statkraft and Det Norske Oljeselskap.
In a comment Svein Aaser said he is looking forward to working with the Board and management team at Telenor ASA. He said Telenor is among the largest mobile operators in the world and they have achieved a strong market position in a short period of time, both in Europe and in Asia. He looks forward to learning more about the organisation and its markets.
The Corporate Assembly also elected Anders Skjævestad to succeed Jan Erik Korssjøen as Chairman of the Corporate Assembly and thus Chairman of the Nomination Committee. Skjævestad has been member of the Corporate Assembly and the Nomination Committee since 2009.
Telenor and BCG study: mHealth to change the face of healthcare (Norway)
The Boston Consulting Group (BCG), in cooperation with Telenor Group, has now released the complete report on the “Socio-Economic Impact of Mobile Health”. The report explores the potential impact of mHealth solutions, such as how Norway can save $2 billion each year with remote monitoring solutions for the elderly and how Thailand can cure 40,000 cases of tuberculosis through SMS treatment compliance.
The report dives into the healthcare situations in Norway, Denmark, Sweden, Hungary, Serbia, Montenegro, Thailand, Malaysia, Russia, Bangladesh, Pakistan and India. It presents potential solutions for each of these markets that are possible through mobile communications.
Jon Fredrik Baksaas, CEO, Telenor Group, has said that they commissioned this report because they wanted to better understand how their solutions can help improve the healthcare situations in the countries where we operate. For instance, how can they increase efficiency in modern healthcare through remote monitoring solutions that enable the elderly people to live longer in their own homes?
The most notable healthcare challenges faced in Norway, Denmark, Sweden, Hungary, Serbia and Montenegro include their aging population and the rising costs of healthcare services. Solutions such as home monitoring aided by mobile technology can keep the elderly in their homes longer, easing the burden on care facilities. However, barriers to widespread mHealth solutions include privacy issues, interoperability challenges when sharing information electronically, and the lack of industry incentive when remuneration is often dependent on nights actually spent in the hospital, nursing facility or face-to-face consultations.
As countries in transition, Malaysia, Russia and Thailand face shared difficulty in ensuring proper maternal health and infant care, combating communicable diseases, and confronting new challenges such as obesity, cardiovascular disease and diabetes. Remote diagnostics and remote patient monitoring can be critical to bringing healthcare to the rural populations in these countries. However, the lack of common standards can prevent the spread of mHealth, along with limited commitment from regulatory bodies to ensure that mHealth happens.
Nations such as Bangladesh, Pakistan and India are struggling to deliver affordable healthcare to their citizens. Their resources are limited and much of their population is rural. mHealth deployment is currently limited in these countries, partly due to lack of awareness and action from the regulatory bodies. From maternal and infant health challenges to reducing disease, these countries need cost-efficient and widespread solutions that will help their citizens live longer and healthier. mHealth can fill these gaps, but access to mobile services needs to improve, along with government commitment and the creation of incentives to encourage the spread of mHealth.
Baksaas said that mHealth can be one of the keys to redefining and reinvigorating their struggling healthcare systems, as well as enhancing the healthy lifestyles and longevity of the citizens. The telecommunications industry is well-positioned to play a central role in the evolution of mobile health solutions worldwide.
Telenor hopes for early solution to investment issues in India (India, Norway)
Wireless operator Telenor is hopeful that it would be allowed to carry out its operations in India as well as re-bid in the new 2G auctions, following positive talks between the prime minister’s of the two countries.
According to reports, Telenor’s executive vice president & Asia head Sigve Brekke said that in the backdrop of the encouraging PM-level discussions between India and Norway in Seoul, they expect a solution to emerge and remain invested in India. He added that since the Norwegian government owns 54 percent of Telenor, they are hopeful of an early solution.
Brekke added that they are yet to receive a specific assurance from the Indian government, but are hopeful the 2G auction and their licence expiry dates will be aligned, paving the way for Telenor to particpate in the airwaves auction.
The company has earlier announced that it will end its partnership with Unitech Wireless and will sought out a new partner for a joint venture.
Telenor increases stake in VimpelCom (Europe)
Telecom operator Telenor has increased its stake in Russian operator VimpelCom to 35.7 percent from 31.7 percent, in an attempt to increase its presence in the Russian mobile market.
According to a report by Nasdaq, VimpelCom’s share price has come under pressure of late as the result of a drawn-out negotiation process over its merger with Egyptian Orascom Telecom and the Algerian government.
The report reveals that while uncertainty over VimpelCom’s North African ventures may pressure the stock in the short-term, investors with a longer time horizon could follow Telenor’s lead and take advantage of the attractive entry point.
Like other emerging market telecom firms, VimpelCom will continue to benefit from the increased penetration of smart devices and a concomitant rise in lucrative mobile data revenue. Given the positive macro trends in the sector, combined with a projected annual growth rate of 26 percent and a strong free cash flow position, VimpelCom could be a good buy at these levels.
Telenor may seek international arbitration over Indian investment (Norway, India)
Mobile operator Telenor has informed the Indian government that it would seek damages in the event that the cancellation of its 22 licences was not dealt with, according to a report by Reuters. The report states that Glen Mandelid, Telenor spokesman said that they are hopeful that it remains the government’s intent to protect and encourage bona fide foreign investment in the country.
As per the report, the operator has said that if a solution is not reached within six months, it will seek international arbitration for failure to protect its investment in the country. Further, the report states that Telenor said it informed the Indian government of its intent to invoke the provisions of the so-called Comprehensive Economic Cooperation Agreement (CECA) between India and Singapore. The Norwegian company owns the stake in the Indian joint venture through its unit registered in Singapore.
Unitech asks Telenor for US$ 150 million to end partnership in joint venture (Norway, India)
In an attempt to put an end to the dispute, Unitech has demanded a payout of US$ 150 million for its 32.7 per cent stake in the joint venture with Telenor, according to a report by ET. As per the report, the firm suggested this to the Company Law Board when asked if it would like to buy out Telenor’s 67.25 per cent stake or exit the venture.
The report reveals that a Telenor spokesperson has said that both parties have been asked by the Company Law Board (CLB) not to comment on the proceedings that took place within closed chambers. On their part, they will respect the directions of the CLB. What they have earlier stated it is that the partnership with Unitech is over, and it is their intention to form a new company to which Uninor’s assets can be transferred. This company will form the platform with which they will approach the upcoming auction.
Tech Mahindra to receive official termination notice from Etsialat (UAE, India)
Following the Indian Supreme Court’s cancellation of 122 2G licences awarded to telecom companies in 2008, over claims that the licences were not availed legally, Etisalat had announced that it will shut down operations of joint venture Etisalat DB in India.
However Tech Mahindra, which has signed a contract with Etisalat DB, has said that they are still awaiting official communication from them on the decision about cessation of operations. Further, they plan to have a discussion with Etisalat subsequently.
According to reports, Etisalat and Tech Mahindra’s contract is worth US$ 400 million for a period of 10 years.
The supreme Court’s decision also caused Bahrain Telecom to shut down Indian operations, while Telenor is looking for a new partner to continue their services in the country.
Etisalat DB to end Indian operations (UAE, India)
The Indian Supreme Court’s decision to cancel 122 2G licences seems to be having a ripple effect, with UAE based Etisalat also planning to shut down its operations in India.
According to a company statement, Etisalat has said that as unanimously resolved by the Board, Etisalat DB will be taking steps to reduce operating costs, including the suspension of its network and services, pursuant to the terms of its UAS licenses. The operator claims that the decision to cancel the licences has removed EDB’s ability to operate from June 2, 2012.
Etisalat added that the decision has been taken in order to protect the interests of all stakeholders and to avoid incurring further costs at this time of rapid change and continued uncertainty in the Indian telecommunications sector.
Further information, including the official cessation date will be communicated shortly to EDB’s customers through the appropriate channels.
Bahrain Telecom had also announced its exit from India soon after the ruling, while Telenor has announced that it is searching for a new partner to carry out its operations in the country.
