Telenor Group CEO Sigve Brekke has revealed the telecom operator’s revenue, Opex and capital expenditure (Capex) targets for 2020.
The main highlight of the Telenor’s business plan for 2020 is the target of low single digit growth in revenue. This indicates that Telenor will not be able to bring out innovative offers to its customers. Unlike AT&T, Verizon and Vodafone, Telenor is yet to consider enterprise business as a key focus area.
Telenor was one of the last entrants into the 4G segment that has given strong data revenue to telecom operators such as Verizon and AT&T. Telenor does not have an license to operate 3G in India. Telenor India has limited presence in the 4G space.
Telenor, without revealing its strategy, said it aims to bring down operation expenditure (Opex) by 1-3 percent per year.
Telenor anticipates that it could maintain Capex to sales ratio of around 15 percent till 2020.
Telenor targets for period 2018-2020
# Year-on-year low single-digit organic revenue growth
# Net Opex reductions of 1 percent – 3 percent per year
# Capex / sales ratio of around 15 percent, excluding licenses
“We aim to grow and significantly improve our efficiency, driven by a digital transformation of our core business and a strict prioritization of resources. The key to our future success lies within the opportunities related to digitizing customer interactions, leveraging scale within networks and IT, as well as using advanced analytics to improve customer insight,” said Sigve Brekke.
Telenor will seek to leverage scale, both through global operations and synergies within its four geographic clusters: Scandinavia, Central and Eastern Europe, emerging Asia and mature Asia.
Telenor will step-up its fibre roll-out in Norway and Sweden, targeting to strengthen its market position within high-speed broadband. Telenor will explore early positions on fibre in emerging Asia, utilizing the company’s existing mobile infrastructure.
Telenor will continue to seek a solution for its operations in India, and also review other assets of less strategic importance. Telenor had earlier held discussion with Vodafone to sell its India business to the UK-based telecom giant.
Baburajan K
editor@telecomlead.com
