Telenor Group signs license in Myanmar

GlobeNewswire Europe

(Fornebu 30.01.2014) Telenor Group today announced that it has signed an agreement with the Union Government of Myanmar for a nationwide telecommunications license. The license includes spectrum in the 900MHz and 2.1GHz bands and is valid for 15 years.  Telenor aims to provide accessible and affordable mobile communications to people across Myanmar, and will launch services within eight months after the license is awarded.

"The people of Myanmar are ready for world-class mobile services and Telenor is ready to deliver it," said Jon Fredrik Baksaas, President and CEO of Telenor Group.

"A major milestone has been passed with the signing of the nationwide telecommunications license agreement with the Myanmar government. This is the start of an exciting journey in Myanmar`s development, which Telenor will support through the delivery of world-class mobile services, responsible business practices and high standards that we live by in all of our markets," added Baksaas.

With a population of around 60 million, of which less than 10 percent have access to mobile services, Myanmar represents a strong business opportunity for Telenor in Asia. Telenor Group will build on its global and regional experience to establish Telenor Myanmar as a successful mass market operator.

There was record interest for the license award process in Myanmar with more than 91 companies expressing interest to participate. Following announcement on June 27 last year of the successful applicants, Telenor entered into consultation with the authorities to finalise details of the policy framework. 

"The license is a product of an extensive consultation process with the Government of Myanmar and international organisations. It now represents an acceptable framework that we believe will go a long way to provide the necessary long-term predictability that Telenor requires when it formally starts operations in Myanmar," said Sigve Brekke, Executive Vice President of Telenor Group and Head of Telenor`s Operations in Asia.

To secure a rapid roll-out, Telenor has already appointed a management team and has initiated ongoing recruitment of employees on all levels. Currently, the company has a workforce of 150, and is expected to hire 1,000 full-time employees by the end of 2014.

"We are fully focused on a rapid roll-out of our network and establishing an extensive distribution system to make services easily available to the population. By offering high-quality products and excellent customer experience, we aim to create loyalty and trust with our customers in Myanmar," said Petter Furberg, CEO of Telenor Myanmar.

Telenor will build a state-of-the-art mobile network using HSPA and LTE-ready technologies, and plans to provide network coverage for 90% of the population in Myanmar within five years. Voice and data services over 2G and 3G will be commercially launched as Telenor`s initial offering, ensuring that consumers get excellent voice quality and high-speed data connectivity.

Telenor targets EBITDA break-even in Myanmar within three years after the license award. The total peak funding, defined as the license fee plus accumulated losses until operating cash flow break-even is expected to be around USD 1 billion. The license fee is USD 500 million.

Analyst and media conference

Telenor Group will hold a press and analyst conference shortly, at the Telenor Group Visitor Centre. Further details to be provided in a separate invitation.

About Telenor

Telenor Group is an international provider of tele, data and media communication services. Telenor Group has mobile operations in 12 markets in the Nordic region, Central and Eastern Europe and in Asia, as well as a voting stake of 42.95 per cent (economic stake 33 per cent) in VimpelCom Ltd., operating in 17 markets. Headquartered in Norway, Telenor Group is one of the world`s major mobile operators with 161 million mobile subscriptions in its consolidated operations per Q3 2013, revenues in 2012 of NOK 102 billion, and a workforce of nearly 34,000.

Contact

Tor Odland
VP Communications
Telenor Group Region Asia
E-mail: tor.odland@telenor.com
Mobile: +66 82 479 4242

Glenn Mandelid
VP Communications
Head of Media Relations
Telenor Group 
E-mail: glenn.mandelid@telenor.com
Mobile: +47 92 66 13 00

Marianne Moe
Head of Investor Relations
Telenor Group
E-mail: marianne.moe@telenor.com
Mobile: +47 91 61 76 31




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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Telenor via GlobeNewswire

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