OSLO, Norway, April 4, 2001 (PRIMEZONE) -- Telenor (Nasdaq:TELN) is currently planning certain organizational changes with the aim of strengthening its profile as a customer-orientated, innovative company, fully adapted to the telecommunications and IT markets of the future. The focus of the company's business activities will be further intensified, giving better defined core areas.
In preparation for the launch of its shares on the stock market last year, Telenor made adjustments to its corporate structure, amongst other things, creating a distinction between core activities and related activities. This work is now continuing with the aim of a more efficient realization of the group's strategy.
The background for the changes which are now being planned is that the telecommunications and IT industry is at a crossroads, with stronger focus on content-associated and customer-adapted services and solutions. The new corporate structure will facilitate the realization of synergies existing across the present structure and the achievement of more cost-effective operations.
The most important changes in comparison with the earlier company structure will be that a larger proportion of the services aimed at private customers will be combined into a single business area. This includes telephony solutions for the private market and Telenor Internet's activities in Norway, as well as TV and content services supplied by Telenor Broadband Services' operations.
The group's concerted efforts aimed at the business market will be organized in a separate business area, along with the existing business area Telenor Business Solutions, Telenor Internet's involvement in the business market (Nextra) and other business-orientated activities.
Telenor's fixed network operations will be separated from the existing Telenor Telecom business area and will focus on cost-effective production of basic services and the wholesale of network capacity, transport and access.
The organizational structure of Telenor's mobile operations will remain unchanged.
On this basis, Telenor's core activities will be organized as follows:
Business communication activities, which will combine Telenor's activities aimed at the business market which are at present distributed through several business areas, amongst others in Telenor Business Solutions and Nextra.
Communication for private homes, which will combine a major part of Telenor's portfolio for the private market into a single business area in the fields of fixed network telephony, Internet, TV, and content services.
Fixed network activities will become a separate business area focussing on cost-effective production of the basic services and the wholesale of network capacity, transport and access.
Telenor's mobile operations will remain unchanged and will still cover activities in Norway and abroad under the management of Senior Executive Vice President Arve Johansen.
Project leaders have been appointed and have been given a mandate to prepare proposals for a new corporate structure. They are:
-- Executive Vice President Morten Lundal for the business market
area;
-- Executive Vice President Stig Eide Sivertsen for communications
and the private market;
-- Executive Vice President Jan Edvard Thygesen for fixed network
activities.
Related Areas
Telenor Media, EDB Business Partner and Bravida are at present defined as related activities. We will consider defining additional related activities with the aim of Telenor further reducing its share stake, applying for separate stock listing or merging with other owners.
The Way Ahead
The Board of Directors have authorized management to continue the necessary work of preparing the proposed changes. Telenor aims to implement the changes during the summer of 2001. In the meantime, operations will continue with the existing structure and under the present management.