October 25, 2022 – Telenor Group, a leading global telecommunications company serving 175 million customers in the Nordics and Asia, announced the formation of Telenor Asia, a more independent regional entity with headquarters in Singapore. Telenor Asia will take on full oversight and responsibility for the company’s operations in Thailand, Bangladesh, Malaysia and Pakistan.
“The strengthened team at our Singapore headquarters will add value to our operations and safeguard our interests in the region. This will also help us ensure value creation of our assets, and we will explore structural partnerships or, in the future, a potential IPO,” said Jørgen Rostrup, Head of Telenor Asia. “The foundation for our continued growth in Asia is how our services help improve people’s lives and empower societies. In a recent survey we conducted of 8,000 people in South and Southeast Asia, a resounding 93% said that mobile connectivity improved their quality of life,” he added.
Each market will now have dedicated Investment Management teams. These teams will take on an asset manager role and represent Telenor’s interests in local boards. The team in Singapore will also be strengthened with expertise in finance, operations, risk management, governance, people management and responsible business.
In 2021, Telenor Asia signed merger agreements in Malaysia and Thailand. These mergers are the largest and second largest in South-East Asia. When the two mergers are completed, Telenor Asia’s portfolio will comprise leading telco players in three large Asian markets.
To achieve a target of US$1.2 billion in cash flow by 2025, Telenor Asia will realise synergies from the two mergers and maximise opportunities across three areas:
- Increasing mobile adoption and data usage in Bangladesh and Pakistan. There are more than 150 million people in these two countries without mobile devices and 50% of the current customer base subscribe to voice services only.
- Growing business-to-business (B2B) revenue. Current revenue contribution to Telenor Asia from this sector is around 5%, with large growth potential. Throughout the pandemic, when the overall telco sector was contracting, Telenor Asia’s B2B revenue was up by 10%.
- Expanding customer value by offering services beyond core mobile connectivity such as insurance, security and gaming products.
Telenor has been present in Singapore since 1998 and has a diverse workforce of over 180 employees. Singapore is also home to Telenor’s global procurement company where a team of skilled professionals manage complex supplier relationships and ensure responsible supply chains. Telenor Connexion, which provides cutting-edge IoT solutions, has a team of sales professionals covering Asia-Pacific from Singapore. Telenor’s journey in Asia began with Bangladesh in 1997. Fast forward 25 years, Telenor has 165 million customers in the region and is committed to supporting national digital ambitions.