SONOFON is Denmark’s second largest mobile operator with about 900,000 mobile subscriptions, which equals approximately 30 percent customer market share and 35 percent airtime market share. SONOFON has a strong brand image with one of the largest distribution networks in Denmark. The company operates nation-wide GSM900 and GSM1800 networks.
“We are pleased to have succeeded in acquiring 53.50 percent of SONOFON. The investment in SONOFON confirms our commitment to become a significant player in the European telecommunications market. Combined with our position in Norway, this investment strengthens our position as a leading telecommunications company in the Nordic region; a region that has the world’s most advanced mobile telecommunications”, says Tormod Hermansen, CEO and President of Telenor.
“The market for mobile Internet services will be much bigger than the plain old telephony market. SONOFON intends to dominate the development of this new market in Denmark, and with Telenor as our new strategic partner, we have even better conditions to realise our visions”, says Ulrik Bülow, CEO of SONOFON.
Denmark has a population of 5.4 million, and a mobile penetration of about 57 percent.
Credit Suisse First Boston is acting as financial advisor to Telenor on this transaction.
Facts about the companies:
SONOFON
SONOFON is Denmark’s second largest telecommunications company and specialises in mobile telephony, high speed data services, fixed network services and Internet access. The company is the technological leader in the Danish market in WAP, GPRS (General Packet Radio Service) and SMS. The company started its business in 1992 and has today approximately 1,500 employees. The corporate headquarter was moved from Aalborg to Copenhagen in 1999. Aalborg still remains a central location for the company.
The company launched HSCSDS (High speed circuit switched data service) in October 1999 and WAP service in December 1999. SMS represented 3 percent of revenues in December 1999 driven by its availability to prepaid customers and the development of a range of services through GISMO (GSM-based Information System Mobile Operated) such as mobile banking (November 1999) and news.
In April 1999, SONOFON was granted service provider access to Tele Denmark’s fixed line network enabling its combination of fixed-line and mobile telephony. The fixed network had 89,000 residential customers in 1999 and also serves 130 businesses. SONOFON has one of the largest distribution networks in Denmark with 1,200 stores, including 20 owned stores, of which 200 are set up towards the business market.
In 1999 net revenue was DKK 2,904 billion, EBITDA was DKK 736 mill. and EBITA was DKK 389 mill.
SONOFON’s Executive Management comprises of Ulrik Bülow, President and CEO since June 1998, Tage Rasmussen, COO and former Technical Director, Tage Reinert CFO, Allan Koch, SVP Corporate Relations, and Rune Sørensen, SVP Sales & Marketing.
For further information, see www.SONOFON.dk
Telenor
Telenor is one of Europe’s leading telecommunications companies. Its head office is based in Oslo, Norway. Telenor provides an extensive range of data and telecommunications products and services, including fixed and wireless telephone services, installation and operation of complete IT systems, global satellite systems, offshore services, transmission and distribution of broadcasting signals, value added services, Internet services and the production and distribution of directories. Telenor has a portfolio of interests in more than 70 operative subsidiaries and associated companies in over 30 countries outside Norway. With 22,000 employees at home and abroad, and turnover of NOK 33.5 billion 1999, Telenor is one of Norway’s largest companies. Telenor, which is wholly owned by the Norwegian State, is in a process of preparing for a stock listing.
Telenor Mobile Communications (TMC) is the mobile business area of Telenor, offering voice, data, Internet, e-commerce and content services. Telenor is one of the world’s most advanced mobile operators with a leading position in the Norwegian market and with ownership in 15 mobile companies throughout the world. The total number of subscribers as of March 31, 2000 was approximately 9.1 million in companies where Telenor has ownership.
Mobile Portfolio as March 31, 2000
Company | Markets | Per- centage owned | Sub- scribers * (000) | Popu- lation (mill) |
Telenor Mobil | Norway | 100.0% | 2,060 | 4.5 |
VIAG Interkom | Germany | 10.0% | 1,323 | 81.4 |
Cosmote | Greece | 22.0% | 1,190 | 10.4 |
TAC** | Thailand | 40. 0% | 1,100 | 61.9 |
Pannon GSM | Hungary | 25.8% | 751 | 10.3 |
Esat Digifone | Ireland | 49.5% | 628 | 3.6 |
DiGi.Com | Malaysia | 30. 0% | 609 | 19.5 |
Connect Austria | Austria | 17.5% | 604 | 8.0 |
VimpelCom | Russia | 31.7% | 482 | 115,0 |
North-West GSM | St. Petersburg | 12.7% | 143 | 8.0 |
Kyivstar | Ukraine | 35. 0% | 84 | 52.0 |
GrameenPhone | Bangladesh | 46.4% | 81 | 117.8 |
Pro-Monte GSM | Montenegro | 40.1% | 58 | 0.7 |
Stavtelsot | Stavropol | 49. 0% | 7 | 2.5 |
Extel | Kaliningrad | 49. 0% | 5 | 1.0 |
Total | 9,125 |
* The companies own figures **Closing in progress
GN Great Nordic
GN Great Nordic was founded in 1869 and is listed on both the Copenhagen and the London Stock Exchanges. The company is an internationally expanding group of ICT (Information, Communication and Technology) companies with about 5,200 employees all over the world.
The GN Great Nordic Group has three core businesses after the sale of SONOFON, GN Nettest: network performance monitoring solutions, GN ReSound: high-tech solutions to improve hearing, and GN Netcom: hands-free communications solutions.
GN Great Nordic is based in Denmark but operates globally on all the important markets of the respective industries of its subsidiaries. 60 per cent of GN Nettest, GN ReSound and GN Netcom employees are based in North America.
For further information, see www.gn.dk