Monday, November 29, 1999

INTERVIEW - Telenor: Mobile market not getting tougher

News posted by www.newsinfoline.com

Norway's Telenor said mobile price competition in India has not become more intense since it launched operations there late last year and affirmed its ongoing push for market share above margins.Chief Executive Jon Fredrik Baksaas told Reuters in an interview that Telenor would keep its present push to win market share and customer loyalty in India until at least the start of 2012, before switching focus to margins.Asked how long Telenor wanted to continue its current focus before a switch of priorities towards margins, Baksaas said: "We have good capacity available in our networks for some 1-1/2 years from launch. So in 1-1/2 or 2 years we may see in some circles (regions) a transition.""But I wouldn't be too bombastic about one specific point in time, it may be a stretch."Analysts were sceptical about Telenor's decision to enter India, one of the world's biggest mobile markets but one marred with extremely thin margins due to cut-throat competition."The price competition is tough, but it has not moved (up) an extra layer from what we saw at the end of 2009," he said.Baksaas added that a change to per-second billing in India did not harm new entrants like Telenor but had more impact on incumbents who had to take a position on the development.He said Telenor was in favour of consolidation on the fragmented Pakistani mobile market, where it has a fast growing subsidiary which has been gaining in strength vis-a-vis rivals."The rumours are there, everyone is talking about consolidation being good for the industry (in Pakistan). We will have to wait for a window of opportunity for the players to find a common solution," Baksaas said."We're still in favour of seeing that type of consolidation happening, but as you can also see Telenor is growing its position in strength, which is a good thing to do."
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