Press Releases

27
April 2005

Telenor Pakistan reports 343,000 subscribers after 2 weeks of service

Islamabad April 27, 2005: Telenor ASA of Norway announced its financial results for the first quarter 2005 to day. The first report with subscriber figures from Telenor Pakistan was also revealed on the occasion. It shows 343,000 subscribers by the end of March 2005, only two weeks after the commercial launch.

The Telenor services were launched March 15th in Islamabad, Rawalpindi and Karachi. One week later Lahore, Faisalabad and Hyderabad were added to the mobile network. By April 20th the network was extended to Gujaranwala, covering a total of 35 million people. The total number of employees in Telenor Pakistan is today 760.

Chief Marketing Officer Bjorn Taale Sandberg is pleased by the reception Telenor has received in Pakistan. The mobile market is growing rapidly and we are prepared to meet the demand for our products and services. We are today presenting Telenor to the customers by 9 Customer Service Centers, 36 franchisees and several thousand retail outlets. We are encouraged to continue our efforts and expand our services to new cities and areas. We are committed to provide high quality services to our valued customers.

Executive Vice President Irfan Wahab Khan, Corporate and Regulatory, underlines the network expansion. Since the launch on March 15th, 221 additional base stations are added to the network. Addition on 71 base stations in Karachi and 53 in Lahore has further enhanced the capacity and coverage of our state of the art network, he added.

CEO Tore Johnsen underlines that Telenor has an extremely aggressive roll out plan of building 1800 base stations and coverage in 175 cities by year end 2005. The accumulated capital expenses till year end 2007 are calculated to 600 - 700 million USD (excluding license payments).

We are pleased that Telenor was able to keep the promise to commence operations in less than one year after receiving the mobile license, awarded on April 14th 2004. We also expect that Telenor will reach the license requirements well ahead of time.

The license states a minimum coverage of 70% of all Tehsil Headquarters by year end 2008.

The Government of Pakistan has recently approved revised license payment terms for both the new cellular operators. We see the approval as a positive step towards creating a level playing field in the industry comments Tore Johnsen

The overall financial results for 1st Quarter 2005 from Telenor ASA show 7.2% revenue growth to 15.3 billion Norwegian Kroner (NOK) compared with 1Q 2004. Profit before taxes and minority interests; 2.8 billion NOK. (1 NOK = 9.21 PKR)

The international mobile business shows that Telenor has reached 60.1 million mobile subscribers world wide. The company is considered to be well positioned for future revenue and profit growth.