Acquisition of Interest
British Telecommunications PLC
31 August 2000
BT STRENGTHENS POSITION IN SWEDEN
BT today signed a deal to increase its stake in
Swedish telecommunications operator Telenordia AB
to 50 per cent, buying half of Tele Danmark's 33
per cent share in the venture. Telenor will
similarly increase its stake to 50 per cent, by
purchasing the remainder of Tele Danmark's current
holding. Tele Danmark will receive approximately
Euro 154 million (around £95 million) from BT for
its increased stake, and the same from Telenor.
The deal was announced on the eve of Telenordia's
application to the Swedish Government regulator
for a UMTS licence.
Alfred Mockett, chief executive officer of BT
Ignite, said:'BT and Telenor are already major
international players, and today's announcement
further strengthens our relationship. We are both
very positive about bringing our combined
expertise and experience to the Swedish market.
'Winning a licence in the upcoming 3G licence
'beauty contest' will enable Telenordia to provide
Swedish customers with world class mobile Internet
applications.'
BT and Telenor are considering the listing of
Telenordia, which would contribute significantly
to the roll out of a UMTS network in Sweden and
enable Swedish investors to participate in the
company's exciting future.
The Swedish telecommunications sector is valued at
more than £5 billion per year, of which the mobile
segment represents £1.3 billion. In all, Sweden
accounts for 40 per cent of the total Nordic
market.
It is the leading Internet services market in
Europe, with 51 per cent penetration, whilst more
than 60 per cent of the population has a mobile -
one of the highest levels.
Erik Heilborn, chief executive officer of
Telenordia, said 'We are delighted to see that BT
and Telenor are committed to our mobile strategy
in Sweden. They both bring substantial additional
experience and competence to our future mobile
efforts.'
BT
British Telecommunications plc is one of the
world's leading providers of telecommunications
services. Its principal activities include local,
long distance and international telecommunications
services, mobile communications, Internet services
and IT solutions. BT has operations in more than
30 countries worldwide, with ventures in the
Republic of Ireland, France, Switzerland, Spain,
Germany, Italy, Belgium, the Netherlands, Sweden,
New Zealand, Japan, Singapore, Malaysia, Korea,
Latin America and India. BT and AT&T have also
created Concert, the leading global
telecommunications company serving multi-national
business customers, international carriers and
Internet service providers worldwide.
TELENOR
Telenor is a worldwide provider of high quality
telecommunications, data and media communications
services, with a particularly strong focus on
mobile, Internet and broadband services.
Headquartered in Oslo, Norway, the company is
present in over 30 countries, has more than 22,000
employees at home and abroad, and had revenues of
US$ 3.9 billion in 1999.
Internationally, Telenor is steadily increasing
its investments within mobile, Internet, TV-
distribution and Satellite communications,
constantly providing its worldwide customers with
leading-edge solutions at competitive prices.
Telenor Mobile Communications (TMC) is the mobile
business area of Telenor, offering voice, data,
Internet, e-commerce and content services.
Telenor Mobile Communications is one of the
world's most advanced mobile operators with a
leading position in the Norwegian market and with
ownership in 16 mobile companies throughout the
world. The total number of subscribers as of
March 31, 2000 was approximately 10 million in
companies where Telenor Mobile Communications has
ownership.