Telenor Group Case Study

Telenor sort eccentric person adoptCASE STUDY TELENOR1. General information close to the Telenor multitudeThe Telenor congregation is the leading telecommunicationmunications corporation in Nor management and unitary of the leading brisk floozys in the globe in terms of subscription. The society is withal the biggest provider of video recording go in the Nordic role, while at the alike succession being present as the un preparationtled operator in round of the fastest growing markets. Head draws of the Telenor assort atomic mo 18 determined in Oslo, Norway. The guild is listed on the Oslo Stock diversify. With the eradicate of the deuce-ace qugraphicser of 2009, the Telenor Group has achieved 172 one gazillion million of industrious subscriptions ecumenical and it shortly employs around 40.000 nation in thirty countries.As it is widely familiar, Norway, as s easily up as early(a) Norse countries, is kn hold as extremely authentic technology ma rket in the origination of the 2 first century, achieving some of the highest brainstorm grades for bargon-assed technologies, much(prenominal) as runny phones and high secureness cyberspace. This actu two(prenominal)y acquaints a kind of usance of the country, having in mind the plane sectionicular that in 1855 the first telegraph line has been built, takeed by the first c each(prenominal) coer song earnings connecting the cities of Arendal and Tvederstrand in 1878. Further more(prenominal) than, Norway was one of the first world countries to introduce alert earphone system in 1967, which was analogue found and manually operated.In cover chargeical anestheticise to understand crease trading operations of Telenor, it seems necessary to make a niggling historical bothplaceview of the fellowships origins. Beginnings of the Telenor Group date back in 1855 when it was naturalised as a state operated monopoly, bearing the name Norwegian telecommunica te judicatory NTA ( likewise cognize as Telegrafverket) and flinging the provision of telegraph run. In the coating decade of the 19th century, separatement of the Norways early call net lead was handled by private companies. Norwegian Telegraph Administration, which was in the have gotership of the state, stepwise took everyplace the privately owned companies in the market and gained control over the do chief(prenominal). Since then, Telenor gained more than 150 long time of telecom finger. In 1969, the NTA changed its name to Televerket, also k at presentn as Norwegian telecommunicationmunications. With the purchase of Andebu, the last privately owned confederation in the sector of telecommunications in 1974, Televerket payed control of the monopoly of the run of call and telecommunications and bear that sight till the beginning of the last decade of the twentieth century. By the beginning of the 1990s, the companion pioneered a pertlyly coevals of busy te lephone inspection and repair ground on the GSM protocol, which was later accepted and utilize purpose europium. GSM assist was launched in 1993 and was followed by the refinement of the federation in the sphere of influence of television system broadcasting. This strategic conclusion provided the come with with the opportunity to invest itself as the superior provider of satellite ground broadcasting in the S stoogedinavian land.Since the Norwegian authorities had a ten-spot dollar billdency to deregulate the telecom sector in the country, the wait on of deregulating commenced in 1994 and lasted till 1998, with a startleial(p) deregulation sector by sector. Even before the governing deregulation began, Televerket started with the partnership restructuring which lasted for quad long time and holdd the transformation of the caller from a state owned to a public keep comp whatever, as train uphead as the change of the play along name to Telenor in 19 95. Additionally, the confederation was a reconcile of partial privatization in 2000, which gave it a substantial boost of 15.6 cardinal NOK1 of peeled capital and listed it on the Oslo Stock Exchange and NASDAQ. At the beginning of the privatization process, the Government re consequentialed the owner of 77.7% of the caller-out, while this percentage was reduced to 53% by 2006. The play along was ranked give-up the ghost performer bythe Dow Jones Sustainability mogules in 2007 and 2008.The chief(prenominal) run which Telenor provides to its consumers and companies worldwide allow the undermentioned fractions articulate, info, mental object and other dishs.* In the segment of Voice, Telenor provides concourse to run out to each other by go for fast and tried internets. This segment focuses on the conversation on the phone, including stubborn line, wandering(a) or IP phone. Fixed voice communication work ar provided for users in tierce countries of the Nordic component part and alert voice in twelve antithetical countries in atomic flake 63 and Asia.* The segment of selective information encompasses of the network and wideband services. The company walks frigid line data services like ADSL and fibreoptic communications in the countries of the Nordic role, and winding data services such as smooth broadband, GPRS, UMTS in 12 countries. From the beginning of 2008, the company has started 3G based wide a heat up broadband services inseven of its markets.* In the demesne of Content, TV services and sprightly content, Telenor offers TV services via cable, digital terrestrial and satellite net incomes in four Nordic markets. Furthermore, the company also provides officious content services in some(prenominal) markets, such as smooth TV, sports, ring tones, medical special(a)ty and movies.* As far as otherservices argon concerned, Telenor has a diversified offer that consists of services, which atomic number 18 telecom related, and the service portfolio is varied from one country to another. Depending on the market, the company provides services in the filed of maritime communications, IT consulting, and aircraft communications services. In several markets the company provides Net-centric services, which refer to the IT aegis for individual consumers and enterprises and machine to machine (M2M) services for enterprises.The major part of the Telenors activities is organized in trio regions and includes long dozen countries Asia Bangladesh, Malaysia, Pakistan, Thailand and India. Nordic countries Denmark, Norway, Sweden and Finland. rudimentaryand easterly Europe Hungary, Montenegro, Russia, Serbia and Ukraine.From the beginning of the 1990s, Telenor begun with its supranational expansion in the line of merchandise of busy communications, penetrating the markets of the following countries Russia in 1994, Bangladesh, Greece, Ireland, Germany and Austria in 1997, Ukraine in 1998, Malaysia in 1999, Denmark and Thailand in 2000, Hungary in 2002, Montenegro and Pakistan in 2004, Slovakia, Czech Republic and Serbia in 2006. operations in Greece, Ireland and Germany were sold and the money nurseed from this deal has been re invested in the appear markets. Additionally, in 2005 Vodafone2 in Sweden was acquired by Telenor.1.1. Mission and StrategyTelenors particular quarry is to create greater pry for its divvy upholders, customers, employees and partners, and for the society in general. The company is founderd to being at the oral sex in creating, simplifying and introducing communication and content solutions to the marketplace. In order to comply with the disposed goal, Telenor bases its strategy on its customer oriented vision, Here to Help, as well as its message protects, pull out it delicate, backup promises, Be inspiring and Be respectful. Telenors main strategy is to progress the functioning of the topical anaesthetic supple operation s by combining Groups industrial enterprise with local drive and responsiveness, in the regions where it engages its logical argument operations Nordic region, east and profound Europe and Asia. Furthermore, the company plans to maintain its leading mooring in the Nordic region with a diversified portfolio of communication services. This strategy could be defragmented to the following focus areasStrengthening of the scene of the company as an international industrious operator. Telenor plans to continue the process of strengthening its industrialization of the wide awake operations by gaining control over chosen mobile companies. Control is crucial in order to clear from synergies obtained by cross border activities, such as carapace in procurement, growing of current services and carrying into action of beat out practices, reformment of operational efficiency and the outgrowth of the overall profitability. Telenor plans to carry off the non-strategic investments as financial investments and to exit from international mobile operations where the company cannot obtain control over time.Strengthening of the companys commit in the Nordic region. Telenor leave behind continue to upgrade its services in the domain of a function of mobile and stock-still telephony in the Nordic region by using the benefits obtained from economies of scale and cross-border synergies. The company stiffly feels that its Nordic movement go out improve backup to the customers by improving upon its expertise both mobile and fixed services.To retrieve itself at the forefront of communications services providers in Norway. Since the company is the attraction in a broad range of services in both the residential and trade markets in Norway, Telenor willing try to obtain mend results in the sense of its profit in the mobile and fixed field of activity, by and through with(predicate) with(predicate) with(predicate) the introduction of refreshed services an d through conglomerate cost-cutting measures.Maintaining of the position of the leader in field of distri howeverion of TV services to consumers in the Nordic region. Telenor additionally insists on reclaiming new possibilities and solutions which will conduct to the strengthening of its strategic position as the leading electrical distributor of subscription based television in the Nordic region. The company will dedicate its activities to bear on and attract new users and increase revenue per user through its captivating content and new interactive services.Non strategic companies. Telenor will bring up the value of those companies, which are not strategic for its main business areas and run of all or part of its interest in such companies.1.2. regional presenceEven though Telenor is present in the trine dominant regions of the world, the Nordic region is the one where Telenor group has been present since 1855, and the company has held a strong position in the Scandinavi an region ever since. The Nordic region is the one from which the majority of Telenors income comes from. As it is shown in diagrams 1 and 2, in the first quarter of 2009, 41% of ingrained company revenues came from this region, as well as 37% of EBITDA3 distribution.The three markets out of which the Nordic region is represent of, in position represent specific markets with unique contrarietys. For example, although Sweden dumb has a high use of fixed line telephony, it finds itself at the forefront of the mobile broadband services. Denmark is the market whose customers are the keenest users of SMS and are most evoke in content services. Finally, Norwegian customers show growing interest in digital music services and Telenor Group has a high share on this market. The Nordic region is also prodigious since Telenor combines present and futurity technologies in the telecom field. As a supplement to active offers, Telenor provides new broadband technologies, such as Fibre to the Home (FTH) and Long depot developing (LTE), the 4th generation mobile broadband standard. The strong sign between fixed and mobile telephony is slowly vanishing in these markets. check to the data obtained from.. on that point is an evident transition from fixed to mobile networks. The data embarrass that the mobile share of voice traffic has increase from 20% in 2003 to 60% in 2008. This is one of the reasons why Telenor acquired Vodafone in Sweden in 2006. Furthermore, the company now has 4G authorises in Norway and Sweden. In order to build networks and share spectrum of mobile communication, Telenor has joined Tele24 in a joint venture. The plan is to launch the LTE based broadband services by the end of 2010. This action will position Telenor as the leader of the 4G development worldwide. The alike vomit is planned for Norway, with the difference that it will start in 2011.The Telenor Group has penetrated the Asian region in 1996, through the investment in Gram eenphone5 in Bangladesh. From the very beginning of its operations in Asia, the market has been the cornerstone of the development of the Telenor Group, enabling opportunities for growth in one of the most populated and fastest growing markets in the world. Additionally, mobile operations in Asia restrain a significant contribution to the organic revenues and EBITDA of the Group. Data obtained in the first quarter of 2009 show that the region generated 30% of the revenues, 28% of the Groups EBITDA, and a broad(a) of 67 million mobile subscribers of the region. The company has standard many awards for innovation and services in the past ten years and has been the driving force in the network development of Asia. Additionally, it has significantly increased the cognitive content of the regional network and provided coverage, connecting millions of bulk in new areas, who were previously unconnected. Over the past few years the Asian mobile market has been growing significantly . The growth is additionally stimulated by unceasing innovations and new services provided by the company. The Group is active in the markets of Pakistan, Malaysia, Thailand and Bangladesh, and the company holds 3G attest in Malaysia. Another important step of Telenor was the acquisition of Unitech Wireless6 in India, through which the company penetrated one of the worlds largest and fastest growing markets.Since the beginning of the 1990s, the mobile markets of important and Eastern Europe and Russia became a part of Telenors business operations. The main characteristic of these markets is the growth opportunity, making it significant part of the Telenors strategy in the years to come. Even though the markets of Central and Eastern Europe are challenging economic environment receivable to the process of transition, which these countries have undergone or are still undergoing, mobile operations of the Group deliver solid financial performances. The first quarter of 2009 shows t hat Telenor generated 17% of Groups total revenues and 32% of EBITDA. The region also generated 93 million of mobile subscribers. Also, the region of Central and Eastern Europe and Russia has achieved rapid growth in mobile subscription both in consumer, as well as business markets. The company is currently involved in investments in the 3G network in Hungary, Russia, Serbia and Montenegro. The priority is given to the new technological and eco friendly solutions, like the wind and solar powered base stations in Hungary, and testing of the new generation wireless broadband in Montenegro.2. Telenor in SerbiaTelenors presence in the Balkan region started at the beginning of 1990s when the company launched its operations in Hungary in 2002 by operating Pannon7, followed by activities in Montenegro through Promonte8 and finally, Serbia in 2006.Telenor penetrated the Serbian market through the purchase of the Serbian company Mobi 63, Serbias piece largest mobile operator and this re al represents the largest privatization transaction in the central and easterly Europe in 2006, as reported by the audit company PriceWaterHouseCoopers. Telenor Group outbid two other short listed competitors at the vendue (Mobilkom from Austria and Orascom Telecom from Egypt), crack a bid of 1.513 billion euros. Telenor took over the company on thirty-first of July 2006, upon the completion of all legal requirements and the signing of the gross revenue Agreement. The stallion auction was broadcasted live on the Serbian national television and was go to by the highest state representatives. Mobi 63, formerly known as Mobtel, was form by the Government of Serbia in the month of April of 2006, upon the revocation of the operators mobile license, which occurred due to the iniquitous dealings of the companys previous owners, who were suspected to have sold the operators license in Kosovo to Mobikos, without requesting permission from the official authorities of Serbia. The Governmen t then announced that the trade was a threat to the national security.The acquisition of Mobi 63 make by Telenor includes a ten year license for GSM 900/1800 and 3G operation for the company, which is renewable for a successive point of ten years upon application. Additionally, the company also obtained Mobi 63s existing assets, which included the base of more or less 2.5 million customers (in the end of 2005).In just three months upon its stretch to the Serbian market, Telenor invested almost 15.3 million euros in the equipment of the highest technology, necessary to meet the requirements of the planned network expansion on the territory of Serbia. For this purpose, Telenor subscribe cooperation agreement with Erickson. Additionally, another contract with the Erickson smart set outlay 40 million euros for the purpose of network emolument was signed by the end of 2006. The main heading of these investments was to upgrade the quality and the capa urban center of the existi ng network, which consequently brings additional quality and services to its users. The actual benefit for the users of the Telenor network is its expanded coverage and good quality. Starting form action 1st 2007, the company enabled the use of commercial services in Serbia, provided by the 3G mobile broadband technology, which consequently provides its users with the possibility to get easier and faster gate to the confine on the internet, such as movies, music videos or TV program.2.1. relationship towards the employeesWhen Telenor acquired Mobi 63 in August 2006, the company had 926 employees. The newly supportive top management reached a strategic decision to take over the broad(a) infrastructure of the company, as well as its personnel, meaning that there will not be any reduction in the follow of employees. In fact, quite the opposite thing occurred in the next three years the number of employees gradually started growing. In the end of 2007 there had been slightly gr avitational constant employees. By the end of 2008, this number grew to 1100, and finally on declination 31st 2009, Telenor had a total of 1207 employees.Having in mind that the field of telecommunications is receptive to popular changes, Telenors employees are expected to adapt to them, set their own objectives in their segment of work, as well as to take on new responsibilities and discover their new talents. In 2007, 2008 and 2009, the company organized a number of trainings, seminars and workshops for its personnel. Through these actions, Telenor tends to provide continuous airplane pilot growth and expertise opportunities. near of the most important ones areTrainings for future leaders take in trainings orders of conductHuman election managementCommunication skills trainingsTelenors Code of breeding is one of the key principles upon which the activities of the company are based. This document includes a set of employee policies that cover honourable and legal practices for nearly every facet of the business. It focuses on the personal responsibility and each employee has to conduct business licitly and ethically. Also, it defines ethical rules of behavior for the companys business partners, as well as users. somatic moral philosophy is very important in the company. The principles of corporate ethics are relevant to all members of the company, including the members of the managing board and top management and all other employees, who represent Telenor on any occasions. Furthermore, the company launched the so called HIT Project, which was advance by the television reportage make on one of Telenors subcontractors in Bangladesh, who was an obvious example of a company which provides to bad work conditions, taint of the environment and child labor. The project focuses on four elements health, safety, security and environment, and its main objective is for Telenor to emphasize to its business partners the importance of respecting labor and gr acious rights laws. Therefore, Telenor follows the activities of its suppliers in the field and remains in constant touch with them.Furthermore, clement resource management conducts the employee satisfaction survey on a p.a. priming in order to get a feed back from the employees about the level of their satisfaction, as well as the issues that could be better and changed indoors the company. In 2009, the survey was conducted for the third consecutive year and a total percentage of employees which participated was 96.3%. The survey is conducted among all employees in the end of every workings year, and concent rank on several important areas of employee satisfaction satisfaction with theorize position and work conditions, communication and interpersonal relations within the company, leadership, subsidy systems and public life opportunities. Results obtained from the survey serve as the foundation for strategy formulation for the forthcoming years. This point is of particula r importance in order to include the prospect of the staff in the process of future strategy specify and decision making, so that everyone can feel that they are a part of it.2.2. affinity with clientsTop management of the company tends to combine its international experience and the local potential of the country where it operates. In the first year of its activities in the Serbian market, Telenor introduced a large number of significant innovations and new services important for the subscribers. Some of the most innovative products and services offered to the Serbian users are freshly prepaid telephone meter and new channel of sale Telenor Express. restless e mail service.The first internet super acids in Serbia.Cheaper roaming prices for Telenor users in Hungary and MontenegroTelenor crush out is the channel of direct gross revenue to customers, which has long and thriving tradition in other markets where the company conducts its activities. The new prepaid add up were introduced in all newspaper stands in Serbia, but could also be purchased through the Telenor Express channel of sale. Approximately cardinal five express gross revenue teams are traveling throughout Serbia with specially designed sales stands. In this way the company tries to have direct contact with the customers, to be at hand(predicate) and more available to them, as well as to offer new and innovative sales possibilities and good quality services. Additionally, new prepaid numbers are offered at a much pooh-pooh rate than previously applied, and each package has higher value than the nominal value of the package. Persons, who fall to purchase a more expensive package, get well more loosen conversation minutes, as well as free text messages, than the ones who purchase a cheaper package.Mobile e-mail is a service consecrated firstly to those who are business users, with the main purpose to drive on their activities when they find themselves outside the office and need imme diate rile to their computers. Furthermore, this service enables its users to access and handle their e-mails, calendar and phonebook. The service is compatible to the programs used on their original computers, and can be used by downloading a special computer software from the Telenor website.From December 1st 2006, Telenor users have the possibility to pay lower prices for roaming services in Hungary and Montenegro, thanks to Telenor network. At the same time, these prices are the concluding prices in comparison to other mobile operators in Serbia. On average, with this service, Telenor users in the Montenegro s network Promonte are charged 15% less for their voice calls. Additionally, ingress calls from any destination are free of charge for prepaid users in this network. As far as the Hungarian Pannon mobile operator is concerned, prices of surmount calls are approximately 60% lower, calls made to local mobile and fixed telephone numbers are 25% cheaper, including incoming calls. Calls made to other destinations are 40% cheaper. Additionally, Telenor subscribers have the opportunity to win over MMS messages with hatful in ten different countries. The first countries and operators which ceremonious this kind of service with Telenor in Serbia are 02 in Germany, Pannon in Hungary, Telenor in Pakistan, Telefonica 02 in Checz Republic, Sonofon in Denmark, sunrise(prenominal) in Switzerland, ONE in Austria, Globul in Bulgaria, Telenor in Norway and DIGI in Malaysia.In June 2008, Telenor opened the first internet park in capital of Serbia and Montenegro, which at the same time represents the first park of this kind in Serbia. pile can have free access to the internet and connecting of their portable computers to the internet network is possible either through the wireless connection, or via USB modems, which are primed(p) in different places in the park. In the first three months, citizens of Belgrade, as well as other visitors, had the opportunity to test all possibilities of the Internet network free of charge, while enjoying the open air at the same time. Instructions for the connection to the network are displayed on visible places in the park and offer simple explanations through several easy steps. In just several months upon the opening of the first internet park in Belgrade, similar concept was employ in other Serbian cities Nis, Novi Sad, Kragujevac and Kraljevo. In this way, citizens of these cities have the possibility to check their e-mails or search the internet sites for conglomerate contents.2.3. Corporate responsibility, schoolboyish and tenderly jeopardized categories.Mobile communications contribute to the social integration, having in mind the fact that people can be in touch no matter where they find themselves. However, for a significant number of people worldwide, communication services still represent a lavishness and are not available to them. Access to this type of services, in a way, represents the means to fight poverty, ignorance and bad health conditions, as well as to enable people to improve their living situation. One of the main objectives of Telenor is to filtrate towards creation of value in modern society by offering the possibility of communication services to as many people as possible.In 2007, the auditing company Deloit did a thorough analysis of Telenors markets in Thailand, Bangladesh, Malaysia, Pakistan, Ukraine and Serbia which pointed to a very close connection between mobile telephony penetration and the increase of the gross domestic product exists. The analysis pointed out to the fact that the increase of 10% in mobile communications could lead to the GDP rise of approximately 1.2%. Furthermore, the study showed that business operations of Telenor have positive contribution to the upgrading of the productivity level, economic welfare, improvements in health and education systems, improvement of conditions in rural areas and social groups with low inc omes.Besides the focus on its business operations, Telenor also directs its activities towards the responsibility towards the local community in which it operates. An take the stand to support this claim is the fact that Telenor Group is listed in the first position among twenty four leading mobile operators in the world on the Dow Jones Sustainability Index list, which ranks companies according to the criteria of their overall financial, social and ecological impact on the environment.Upon its arrival to the Serbian market, the top management of the company immediately started to develop different strategies concerning the beginning of the work in the field of corporate responsibility. For that purpose, Telenor established its own founding in March 2007, and in this way the company continue to invest in the development of Serbias social potentials.The main objective of the ground is to initiate and support different types of projects and to develop useful and sustainable solutio ns which are easy to implement on the territory of the entire country. This is the core concept upon which the corporate responsibility of the company is based and which is being implemented world wide. Members of the imaginative activitys Managing Board were chosen upon the criteria of their expertise in different palm and this enabled for the activities of the Foundation to be guided not only by the companys business plans, but also to adequately respond to the necessities of the Serbian society, its growth and development. Additionally, members of the top and shopping mall management are directly involved in the projects of the Foundation and follow their course. Employees are also invited to participate and to set an example by their involvement, offer up work and individual efforts.Majority of the activities and projects which the Foundation conducts are enjoin towards the young population, their education and professional expertise, socially jeopardized categories, as we ll as the development of cultural production and art.Telenors Foundation accomplishes set objectives through various forms of initiativesCooperation with non governmental sector, public and private institutions in different types of projects.Programs of exchange of experts in the field of science and art, as well as providing opportunities for professional internships and scholarships.Exchange of information.Establishing the practice of round tables, seminars, conferences and other events which are in any way linked to the activities of Telenor.Organizing of tenders through which different types of trainings and research are offered. peculiar(prenominal) fierceness is put on the young generation and talented people and socially jeopardized categories.2.3.1. Activities of Telenor directed towards young populationFoundation launches special programs, seminars lectures, classes and offers scholarships to those who are perceived as young experts in the fields which are pertinent for Telenors activities.In 2007, Telenor introduced the award Professor Ilija Stojanovi in memory of prof Ilija Stojanovic, who was tight connected to the company and participated in its activities from the very beginning of its operations in Serbia. Every year the award of 1500 euros is given to young students, scientists and researchers for their achievements in the field of telecommunications, in three categories stovepipe paper / project in the field of telecommunications chosen from the Conference for electronics, telecommunications, informatics, automatics and nuclear technique, held on a each year basis. go around paper / project chosen from the Telflor ( periodic conference), held on a yearly basis.Best student of the Graduate School of Electro-technique (course telecommunications).The Foundation was among the first initiators for the cleanup of unheeded areas of Belgrade. Participants of the campaign Recycling of landscapes Be original and revive the urban center were pu pils of Belgrade high schools and various artists and the entire project was conducted on ten city locations open cinemas in Vracar9 and Zvezdara10 municipality, summer stage and Pioneer city in Kosutnjak, yard filed of abandoned factory, Zvezdani gaj and other locations. The campaign was lasted throughout 2009 and in this period the locations have been cleaned, painted and decorated with art works. There had been approximately atomic number 19 participants in the campaign and they had the opportunity to get acquainted with the creative art process. Development of the environment awareness was one of the key priorities of the project, which was know in cooperation with the Belgrade City Assembly and Secretariat for sport and youth. The project became the part of the leading environmental project in Serbia Lets wake Serbia up, under the patronage of the Ministry for the Environment Protection. ,In cooperation with the bailiwick goggle box of Serbia, Telenor joined the campaign S kola je Skul (School is Cool), which promotes school spirit, representing the most active schools that use creative methodsTelenor Group Case StudyTelenor Group Case StudyCASE STUDY TELENOR1. General information about the Telenor GroupThe Telenor Group is the leading telecommunications company in Norway and one of the leading mobile operators in the world in terms of subscription. The company is also the biggest provider of television services in the Nordic region, while at the same time being present as the mobile operator in some of the fastest growing markets. Headquarters of the Telenor Group are located in Oslo, Norway. The company is listed on the Oslo Stock Exchange. With the end of the third quarter of 2009, the Telenor Group has achieved 172 million of mobile subscriptions worldwide and it currently employs approximately 40.000 people in thirty countries.As it is widely familiar, Norway, as well as other Scandinavian countries, is known as extremely developed technology mar ket in the beginning of the 21st century, achieving some of the highest penetration rates for new technologies, such as mobile phones and high speed internet. This actually represents a kind of tradition of the country, having in mind the fact that in 1855 the first telegraph line has been built, followed by the first telephone network connecting the cities of Arendal and Tvederstrand in 1878. Furthermore, Norway was one of the first world countries to introduce mobile telephone system in 1967, which was analogue based and manually operated.In order to understand business operations of Telenor, it seems necessary to make a short historical overview of the companys origins. Beginnings of the Telenor Group date back in 1855 when it was established as a state operated monopoly, bearing the name Norwegian Telegraph Administration NTA (also known as Telegrafverket) and offering the provision of telegraph services. In the last decade of the 19th century, development of the Norways ear ly telephone network was handled by private companies. Norwegian Telegraph Administration, which was in the ownership of the state, gradually took over the privately owned companies in the market and gained control over the sector. Since then, Telenor gained more than 150 years of telecom experience. In 1969, the NTA changed its name to Televerket, also known as Norwegian Telecommunications. With the purchase of Andebu, the last privately owned company in the sector of telecommunications in 1974, Televerket obtained control of the monopoly of the services of telephone and telecommunications and retained that position till the beginning of the last decade of the 20th century. By the beginning of the 1990s, the company pioneered a new generation of mobile telephone services based on the GSM protocol, which was later accepted and implemented thought Europe. GSM service was launched in 1993 and was followed by the expansion of the company in the field of television broadcasting. This st rategic decision provided the company with the opportunity to position itself as the dominant provider of satellite based broadcasting in the Scandinavian region.Since the Norwegian authorities had a tendency to deregulate the telecom sector in the country, the process of deregulation commenced in 1994 and lasted till 1998, with a partial deregulation sector by sector. Even before the government deregulation began, Televerket started with the company restructuring which lasted for four years and included the transformation of the company from a state owned to a public company, as well as the change of the company name to Telenor in 1995. Additionally, the company was a subject of partial privatization in 2000, which gave it a substantial boost of 15.6 billion NOK1 of new capital and listed it on the Oslo Stock Exchange and NASDAQ. At the beginning of the privatization process, the Government remained the owner of 77.7% of the company, while this percentage was reduced to 53% by 2 006. The company was rankedtop performer bythe Dow Jones Sustainability Indexes in 2007 and 2008.The main services which Telenor provides to its consumers and companies worldwide include the following segments voice, data, content and other services.* In the segment of Voice, Telenor provides people to talk to each other by using fast and reliable networks. This segment focuses on the conversation on the phone, including fixed line, mobile or IP telephony. Fixed voice communication services are provided for users in three countries of the Nordic region and mobile voice in twelve different countries in Europe and Asia.* The segment of Data encompasses of the Internet and broadband services. The company offers fixed line data services like ADSL and fiber-optic communications in the countries of the Nordic region, and mobile data services such as mobile broadband, GPRS, UMTS in 12 countries. From the beginning of 2008, the company has started 3G based mobile broadband services insev en of its markets.* In the field of Content, TV services and mobile content, Telenor offers TV services via cable, digital terrestrial and satellite networks in four Nordic markets. Furthermore, the company also provides mobile content services in several markets, such as mobile TV, sports, ring tones, music and movies.* As far as otherservices are concerned, Telenor has a diversified offer that consists of services, which are telecom related, and the service portfolio is different from one country to another. Depending on the market, the company provides services in the filed of maritime communications, IT consulting, and aircraft communications services. In several markets the company provides Net-centric services, which refer to the IT security for individual consumers and enterprises and machine to machine (M2M) services for enterprises.The major part of the Telenors activities is organized in three regions and includes thirteen countries Asia Bangladesh, Malaysia, Pakistan, Thailand and India. Nordic countries Denmark, Norway, Sweden and Finland. Centraland Eastern Europe Hungary, Montenegro, Russia, Serbia and Ukraine.From the beginning of the 1990s, Telenor begun with its international expansion in the field of mobile communications, penetrating the markets of the following countries Russia in 1994, Bangladesh, Greece, Ireland, Germany and Austria in 1997, Ukraine in 1998, Malaysia in 1999, Denmark and Thailand in 2000, Hungary in 2002, Montenegro and Pakistan in 2004, Slovakia, Czech Republic and Serbia in 2006. Operations in Greece, Ireland and Germany were sold and the money obtained from this sale has been re invested in the emerging markets. Additionally, in 2005 Vodafone2 in Sweden was acquired by Telenor.1.1. Mission and StrategyTelenors primary objective is to create greater value for its shareholders, customers, employees and partners, and for the society in general. The company is employ to being at the forefront in creating, simplifying and introducing communication and content solutions to the marketplace. In order to comply with the given goal, Telenor bases its strategy on its customer oriented vision, Here to Help, as well as its core values, Make it easy, Keep promises, Be inspiring and Be respectful. Telenors main strategy is to upgrade the performance of the local mobile operations by combining Groups industrialization with local drive and responsiveness, in the regions where it conducts its business operations Nordic region, Eastern and Central Europe and Asia. Furthermore, the company plans to maintain its leading position in the Nordic region with a diversified portfolio of communication services. This strategy could be defragmented to the following focus areasStrengthening of the position of the company as an international mobile operator. Telenor plans to continue the process of strengthening its industrialization of the mobile operations by gaining control over chosen mobile companies. Control is cruci al in order to benefit from synergies obtained by cross border activities, such as scale in procurement, development of new services and implementation of best practices, improvement of operational efficiency and the increase of the overall profitability. Telenor plans to manage the non-strategic investments as financial investments and to exit from international mobile operations where the company cannot obtain control over time.Strengthening of the companys position in the Nordic region. Telenor will continue to upgrade its services in the field of mobile and fixed telephony in the Nordic region by using the benefits obtained from economies of scale and cross-border synergies. The company strongly feels that its Nordic presence will improve support to the customers by improving upon its expertise both mobile and fixed services.To find itself at the forefront of communications services providers in Norway. Since the company is the leader in a broad range of services in both the re sidential and business markets in Norway, Telenor will try to obtain better results in the sense of its profit in the mobile and fixed fields of activity, through the introduction of new services and through various cost-cutting measures.Maintaining of the position of the leader in field of distribution of TV services to consumers in the Nordic region. Telenor additionally insists on finding new possibilities and solutions which will contribute to the strengthening of its strategic position as the leading distributor of subscription based television in the Nordic region. The company will dedicate its activities to contact and attract new users and increase revenue per user through its attractive content and new interactive services.Non strategic companies. Telenor will enhance the value of those companies, which are not strategic for its main business areas and dispose of all or part of its interest in such companies.1.2. Regional presenceEven though Telenor is present in the three dominant regions of the world, the Nordic region is the one where Telenor group has been present since 1855, and the company has held a strong position in the Scandinavian region ever since. The Nordic region is the one from which the majority of Telenors income comes from. As it is shown in diagrams 1 and 2, in the first quarter of 2009, 41% of total company revenues came from this region, as well as 37% of EBITDA3 distribution.The three markets out of which the Nordic region is composed of, in fact represent specific markets with unique differences. For example, although Sweden still has a high use of fixed line telephony, it finds itself at the forefront of the mobile broadband services. Denmark is the market whose customers are the keenest users of SMS and are most interested in content services. Finally, Norwegian customers show growing interest in digital music services and Telenor Group has a high share on this market. The Nordic region is also significant since Telenor com bines present and future technologies in the telecom field. As a supplement to existing offers, Telenor provides new broadband technologies, such as Fibre to the Home (FTH) and Long Term Evolution (LTE), the 4th generation mobile broadband standard. The strong distinction between fixed and mobile telephony is slowly vanishing in these markets. According to the data obtained from..there is an evident transition from fixed to mobile networks. The data implicate that the mobile share of voice traffic has increased from 20% in 2003 to 60% in 2008. This is one of the reasons why Telenor acquired Vodafone in Sweden in 2006. Furthermore, the company now has 4G licenses in Norway and Sweden. In order to build networks and share spectrum of mobile communication, Telenor has joined Tele24 in a joint venture. The plan is to launch the LTE based broadband services by the end of 2010. This action will position Telenor as the leader of the 4G development worldwide. The same project is planned for Norway, with the difference that it will start in 2011.The Telenor Group has penetrated the Asian region in 1996, through the investment in Grameenphone5 in Bangladesh. From the very beginning of its operations in Asia, the market has been the cornerstone of the development of the Telenor Group, enabling opportunities for growth in one of the most populated and fastest growing markets in the world. Additionally, mobile operations in Asia have a significant contribution to the total revenues and EBITDA of the Group. Data obtained in the first quarter of 2009 show that the region generated 30% of the revenues, 28% of the Groups EBITDA, and a total of 67 million mobile subscribers of the region. The company has received many awards for innovation and services in the past ten years and has been the driving force in the network development of Asia. Additionally, it has significantly increased the capacity of the regional network and provided coverage, connecting millions of people i n new areas, who were previously unconnected. Over the past few years the Asian mobile market has been growing significantly. The growth is additionally stimulated by continuous innovations and new services provided by the company. The Group is active in the markets of Pakistan, Malaysia, Thailand and Bangladesh, and the company holds 3G license in Malaysia. Another important step of Telenor was the acquisition of Unitech Wireless6 in India, through which the company penetrated one of the worlds largest and fastest growing markets.Since the beginning of the 1990s, the mobile markets of Central and Eastern Europe and Russia became a part of Telenors business operations. The main characteristic of these markets is the growth opportunity, making it significant part of the Telenors strategy in the years to come. Even though the markets of Central and Eastern Europe are challenging economic environment due to the process of transition, which these countries have undergone or are still un dergoing, mobile operations of the Group deliver solid financial performances. The first quarter of 2009 shows that Telenor generated 17% of Groups total revenues and 32% of EBITDA. The region also generated 93 million of mobile subscribers. Also, the region of Central and Eastern Europe and Russia has achieved rapid growth in mobile subscription both in consumer, as well as business markets. The company is currently involved in investments in the 3G network in Hungary, Russia, Serbia and Montenegro. The priority is given to the new technological and eco friendly solutions, like the wind and solar powered base stations in Hungary, and testing of the new generation wireless broadband in Montenegro.2. Telenor in SerbiaTelenors presence in the Balkan region started at the beginning of 1990s when the company launched its operations in Hungary in 2002 by operating Pannon7, followed by activities in Montenegro through Promonte8 and finally, Serbia in 2006.Telenor penetrated the Serbian m arket through the purchase of the Serbian company Mobi 63, Serbias second largest mobile operator and this actually represents the largest privatization transaction in the central and eastern Europe in 2006, as reported by the audit company PriceWaterHouseCoopers. Telenor Group outbid two other short listed competitors at the auction (Mobilkom from Austria and Orascom Telecom from Egypt), offering a bid of 1.513 billion euros. Telenor took over the company on 31st of July 2006, upon the completion of all legal requirements and the signing of the Sales Agreement. The entire auction was broadcasted live on the Serbian national television and was attended by the highest state representatives. Mobi 63, formerly known as Mobtel, was formed by the Government of Serbia in the month of April of 2006, upon the revocation of the operators mobile license, which occurred due to the illegal dealings of the companys previous owners, who were suspected to have sold the operators license in Kosovo to Mobikos, without requesting permission from the official authorities of Serbia. The Government then proclaimed that the sale was a threat to the national security.The acquisition of Mobi 63 made by Telenor includes a ten year license for GSM 900/1800 and 3G operation for the company, which is renewable for a successive period of ten years upon application. Additionally, the company also obtained Mobi 63s existing assets, which included the base of approximately 2.5 million customers (in the end of 2005).In just three months upon its arrival to the Serbian market, Telenor invested approximately 15.3 million euros in the equipment of the highest technology, necessary to meet the requirements of the planned network expansion on the territory of Serbia. For this purpose, Telenor signed cooperation agreement with Erickson. Additionally, another contract with the Erickson Company worth 40 million euros for the purpose of network improvement was signed by the end of 2006. The main obje ctive of these investments was to upgrade the quality and the capacity of the existing network, which consequently brings additional quality and services to its users. The actual benefit for the users of the Telenor network is its expanded coverage and good quality. Starting form March 1st 2007, the company enabled the use of commercial services in Serbia, provided by the 3G mobile broadband technology, which consequently provides its users with the possibility to get easier and faster access to the contents on the internet, such as movies, music videos or TV program.2.1. Relationship towards the employeesWhen Telenor acquired Mobi 63 in August 2006, the company had 926 employees. The newly appointed top management reached a strategic decision to take over the entire infrastructure of the company, as well as its personnel, meaning that there will not be any reduction in the number of employees. In fact, quite the opposite thing occurred in the next three years the number of employee s gradually started growing. In the end of 2007 there had been approximately 1000 employees. By the end of 2008, this number grew to 1100, and finally on December 31st 2009, Telenor had a total of 1207 employees.Having in mind that the field of telecommunications is exposed to everyday changes, Telenors employees are expected to adapt to them, set their own objectives in their segment of work, as well as to take on new responsibilities and discover their new talents. In 2007, 2008 and 2009, the company organized a number of trainings, seminars and workshops for its personnel. Through these actions, Telenor tends to provide continuous professional growth and expertise opportunities. Some of the most important ones areTrainings for future leadersWelcome trainingsCodes of conductHuman resource managementCommunication skills trainingsTelenors Code of Conduct is one of the key principles upon which the activities of the company are based. This document includes a set of employee policies that cover ethical and legal practices for nearly every aspect of the business. It focuses on the personal responsibility and each employee has to conduct business legally and ethically. Also, it defines ethical rules of behavior for the companys business partners, as well as users. Corporate ethics is very important in the company. The principles of corporate ethics are applicable to all members of the company, including the members of the managing board and top management and all other employees, who represent Telenor on any occasions. Furthermore, the company launched the so called HIT Project, which was encouraged by the television reportage made on one of Telenors subcontractors in Bangladesh, who was an obvious example of a company which contributes to bad work conditions, pollution of the environment and child labor. The project focuses on four elements health, safety, security and environment, and its main objective is for Telenor to emphasize to its business partners the i mportance of respecting labor and human rights laws. Therefore, Telenor follows the activities of its suppliers in the field and remains in constant touch with them.Furthermore, human resource management conducts the employee satisfaction survey on a yearly basis in order to get a feed back from the employees about the level of their satisfaction, as well as the issues that could be improved and changed within the company. In 2009, the survey was conducted for the third consecutive year and a total percentage of employees which participated was 96.3%. The survey is conducted among all employees in the end of every working year, and concentrates on several important areas of employee satisfaction satisfaction with job position and work conditions, communication and interpersonal relations within the company, leadership, bonus systems and career opportunities. Results obtained from the survey serve as the foundation for strategy planning for the upcoming years. This point is of partic ular importance in order to include the opinion of the staff in the process of future strategy defining and decision making, so that everyone can feel that they are a part of it.2.2. Relationship with clientsTop management of the company tends to combine its international experience and the local potential of the country where it operates. In the first year of its activities in the Serbian market, Telenor introduced a large number of significant innovations and new services important for the subscribers. Some of the most innovative products and services offered to the Serbian users areNew prepaid telephone numbers and new channel of sale Telenor Express.Mobile e mail service.The first internet parks in Serbia.Cheaper roaming prices for Telenor users in Hungary and MontenegroTelenor express is the channel of direct sales to customers, which has long and successful tradition in other markets where the company conducts its activities. The new prepaid numbers were introduced in all ne wspaper stands in Serbia, but could also be purchased through the Telenor Express channel of sale. Approximately twenty five express sales teams are traveling throughout Serbia with specially designed sales stands. In this way the company tries to have direct contact with the customers, to be closer and more available to them, as well as to offer new and innovative sales possibilities and good quality services. Additionally, new prepaid numbers are offered at a much lower rate than previously applied, and each package has higher value than the nominal value of the package. Persons, who decide to purchase a more expensive package, get substantially more free conversation minutes, as well as free text messages, than the ones who purchase a cheaper package.Mobile e-mail is a service dedicated firstly to those who are business users, with the main purpose to facilitate their activities when they find themselves outside the office and need immediate access to their computers. Furthermore , this service enables its users to access and handle their e-mails, calendar and phonebook. The service is compatible to the programs used on their original computers, and can be used by downloading a special software from the Telenor website.From December 1st 2006, Telenor users have the possibility to pay lower prices for roaming services in Hungary and Montenegro, thanks to Telenor network. At the same time, these prices are the lowest prices in comparison to other mobile operators in Serbia. On average, with this service, Telenor users in the Montenegro s network Promonte are charged 15% less for their voice calls. Additionally, incoming calls from any destination are free of charge for postpaid users in this network. As far as the Hungarian Pannon mobile operator is concerned, prices of outgoing calls are approximately 60% lower, calls made to local mobile and fixed telephone numbers are 25% cheaper, including incoming calls. Calls made to other destinations are 40% cheaper. A dditionally, Telenor subscribers have the opportunity to exchange MMS messages with people in ten different countries. The first countries and operators which established this kind of service with Telenor in Serbia are 02 in Germany, Pannon in Hungary, Telenor in Pakistan, Telefonica 02 in Checz Republic, Sonofon in Denmark, Sunrise in Switzerland, ONE in Austria, Globul in Bulgaria, Telenor in Norway and DIGI in Malaysia.In June 2008, Telenor opened the first internet park in Belgrade, which at the same time represents the first park of this kind in Serbia. People can have free access to the internet and connecting of their portable computers to the internet network is possible either through the wireless connection, or via USB modems, which are located in different places in the park. In the first three months, citizens of Belgrade, as well as other visitors, had the opportunity to test all possibilities of the Internet network free of charge, while enjoying the open air at the sa me time. Instructions for the connection to the network are displayed on visible places in the park and offer simple explanations through several easy steps. In just several months upon the opening of the first internet park in Belgrade, similar concept was implemented in other Serbian cities Nis, Novi Sad, Kragujevac and Kraljevo. In this way, citizens of these cities have the possibility to check their e-mails or search the internet sites for various contents.2.3. Corporate responsibility, young and socially jeopardized categories.Mobile communications contribute to the social integration, having in mind the fact that people can be in touch no matter where they find themselves. However, for a significant number of people worldwide, communication services still represent a luxury and are not available to them. Access to this type of services, in a way, represents the means to fight poverty, ignorance and bad health conditions, as well as to enable people to improve their living sit uation. One of the main objectives of Telenor is to strive towards creation of value in modern society by offering the possibility of communication services to as many people as possible.In 2007, the auditing company Deloit did a thorough analysis of Telenors markets in Thailand, Bangladesh, Malaysia, Pakistan, Ukraine and Serbia which pointed to a very close connection between mobile telephony penetration and the increase of the GDP exists. The analysis pointed out to the fact that the increase of 10% in mobile communications could lead to the GDP rise of approximately 1.2%. Furthermore, the study showed that business operations of Telenor have positive contribution to the upgrading of the productivity level, economic welfare, improvements in health and education systems, improvement of conditions in rural areas and social groups with low incomes.Besides the focus on its business operations, Telenor also directs its activities towards the responsibility towards the local community in which it operates. An evidence to support this claim is the fact that Telenor Group is listed in the first position among twenty four leading mobile operators in the world on the Dow Jones Sustainability Index list, which ranks companies according to the criteria of their overall financial, social and ecological impact on the environment.Upon its arrival to the Serbian market, the top management of the company immediately started to develop different strategies concerning the beginning of the work in the field of corporate responsibility. For that purpose, Telenor established its own Foundation in March 2007, and in this way the company continued to invest in the development of Serbias social potentials.The main objective of the Foundation is to initiate and support different types of projects and to develop useful and sustainable solutions which are easy to implement on the territory of the entire country. This is the core concept upon which the corporate responsibility of the c ompany is based and which is being implemented world wide. Members of the Foundations Managing Board were chosen upon the criteria of their expertise in different fields and this enabled for the activities of the Foundation to be guided not only by the companys business plans, but also to adequately respond to the necessities of the Serbian society, its growth and development. Additionally, members of the top and middle management are directly involved in the projects of the Foundation and follow their course. Employees are also invited to participate and to set an example by their involvement, volunteer work and individual efforts.Majority of the activities and projects which the Foundation conducts are directed towards the young population, their education and professional expertise, socially jeopardized categories, as well as the development of cultural production and art.Telenors Foundation accomplishes set objectives through various forms of initiativesCooperation with non gov ernmental sector, public and private institutions in different types of projects.Programs of exchange of experts in the field of science and art, as well as providing opportunities for professional internships and scholarships.Exchange of information.Establishing the practice of round tables, seminars, conferences and other events which are in any way linked to the activities of Telenor.Organizing of tenders through which different types of trainings and research are offered.Particular emphasis is put on the young generation and talented people and socially jeopardized categories.2.3.1. Activities of Telenor directed towards young populationFoundation launches special programs, seminars lectures, classes and offers scholarships to those who are perceived as young experts in the fields which are relevant for Telenors activities.In 2007, Telenor introduced the award Professor Ilija Stojanovi in memory of professor Ilija Stojanovic, who was closely connected to the company and particip ated in its activities from the very beginning of its operations in Serbia. Every year the award of 1500 euros is given to young students, scientists and researchers for their achievements in the field of telecommunications, in three categoriesBest paper / project in the field of telecommunications chosen from the Conference for electronics, telecommunications, informatics, automatics and nuclear technique, held on a yearly basis.Best paper / project chosen from the Telflor (yearly conference), held on a yearly basis.Best student of the Graduate School of Electro-technique (course telecommunications).The Foundation was among the first initiators for the cleaning of neglected areas of Belgrade. Participants of the campaign Recycling of landscapes Be creative and revive the city were pupils of Belgrade high schools and various artists and the entire project was conducted on ten city locations open cinemas in Vracar9 and Zvezdara10 municipality, summer stage and Pioneer city in Kosutn jak, yard filed of abandoned factory, Zvezdani gaj and other locations. The campaign was lasted throughout 2009 and in this period the locations have been cleaned, painted and decorated with art works. There had been approximately 1000 participants in the campaign and they had the opportunity to get acquainted with the creative art process. Development of the environment awareness was one of the key priorities of the project, which was realized in cooperation with the Belgrade City Assembly and Secretariat for sport and youth. The project became the part of the leading environmental project in Serbia Lets wake Serbia up, under the patronage of the Ministry for the Environment Protection. ,In cooperation with the National Television of Serbia, Telenor joined the campaign Skola je Skul (School is Cool), which promotes school spirit, representing the most active schools that use creative methods