Mobile StrategyHead of Global Coordination - Ragnar H. Korsæth

Continued Growth in Revenues and Cash Flow

• Strengthen local position and competitiveness

• Targeting the world’s next billion mobile subscribers

• Selective international expansion

Internationalisation of Telenor

200520001995

Expansion

Strategy

Value CreationStrategy

Global Coordination

Active Ownership

Network and Service Rollout

Selective Expansion

Control or Exit

Licence Hunting

GrameenPhone Performance

1 099

913

674

516

2003 2004 2005 Q1 2006

ARPU

244

196

233227

2,62,9

3,8

4,8

2003 2004 2005 Q1 2006

MoU/APPM

1 141

2 388

5 542

6 427

62 % 62 % 62 %

62 %

2003 2004 2005 Q1 06

Subscriptions/Market share

12 695

19 302

29 524

65 % 60 %50 %

2003 2004 2005

8 269

11 592

14 667

3 545

11 636

20 890

2003 2004 2005

EBITDA CAPEX

Revenues/EBITDA% EBITDA and CAPEX

All figures according to local currency. 2003-figures are not according to same accounting principles and KPI definitions as 2004-2006.EBITDA and CAPEX adjusted for change in accounting treatment of lease in 2005

Kyivstar Performance

68 67

49

40

2003 2004 2005 Q1 2006

83

110

98

56

0,40,5

0,8

1,2

2003 2004 2005 Q1 2006

3 037

6 252

13 92514 965

45 % 46 % 45 %

47 %

2003 2004 2005 Q1 06

2 001

3 341

5 769

60 % 61 % 56 %

2003 2004 2005

1 195

2 044

3 212

744

2 065

2 896

2003 2004 2005

EBITDA CAPEX

ARPU MoU/APPMSubscriptions/Market share

Revenues/EBITDA% EBITDA and CAPEX

All figures according to local currency. 2003-figures are not according to same accounting principles and KPI definitions as 2004-2006

DiGi Performance

62 60 5854

2003 2004 2005 Q1 2006

166 162169175

0,330,340,360,36

2003 2004 2005 Q1 2006

2 205

3 239

4 7955 086

20 % 22 %25 % 25 %

2003 2004 2005 Q1 06

1 714

2 231

2 899

41 %44 % 43 %

2003 2004 2005

699

979

1 259

563 520688

2003 2004 2005

EBITDA CAPEX

ARPU MoU/APPMSubscriptions/Market share

Revenues/EBITDA% EBITDA and CAPEX

All figures according to local currency. 2003-figures are not according to same accounting principles and KPI definitions as 2004-2006

Mobile Norway Performance

323 323 309 305

2003 2004 2005 Q1 2006

184186

184

176

1,61,71,81,8

2003 2004 2005 Q1 2006

2 364

2 6452 731 2 722

57 % 56 % 56 % 56 %

2003 2004 2005 Q1 06

10 90911 730

12 243

39 % 37 % 37 %

2003 2004 2005

4 262 4 305 4 471

500973 1 218

2003 2004 2005

EBITDA CAPEX

ARPU MoU/APPMSubscriptions/Market share

Revenues/EBITDA% EBITDA and CAPEX

All figures according to local currency. 2003-figures are not according to same accounting principles and KPI definitions as 2004-2006

Continued Growth in Revenues and Cash Flow

• Strengthen local position and competitiveness

• Targeting the world’s next billion mobile subscribers

• Selective international expansion

Telenor’s Operating Model

Centralisation & Integration

Stand-alone Operations

Group standards Best practice sharing

Global Coordination

Market dynamics and responsiveness is local• Operational decision making• Control of value chain• Production, marketing and service delivery

Global Service Innovation

• Coordinated sharing of proven concepts

• Virtual service market place

• Common service delivery platform

• Innovation Centre in Malaysia

Investment Optimisation

• Joint group procurement processes

• Aligning vendors on future low ARPU challenges

• Early adaptation of new technology

• Decreasing CAPEX per minute

0

20

40

60

80

100

2002 2003 2004 2005 2006

Telecom Equipment Prices

Network Efficiency (Erlang per TRX)

2,4

3

3,8

4,55

2002 2003 2004 2005 2006

Continued Growth in Revenues and Cash Flow

• Strengthen local position and competitiveness

• Targeting the world’s next billion mobile subscribers

• Selective international expansion

Strong Mobile Growth Potential

Source: Telenor estimates

• Current population footprint of 650 million

• Expect the total market to grow with

~130 million subscriptions by 2008

60

14

1215

18 20H

ungary

Malaysia

Thailand

Ukraine

Bangladesh

Pakistan

Russia

Expected Subscription Growthby 2008 (million)

The Next Billion Challenge

The first billion subscriptions

More than USD 25 ARPU

The next billion subscriptions

Less than USD 2 ARPU

How to Make Money on

USD 2 ARPU

No Subscriber Acquisition

Costs

No Customer Support

Monitor the Peak

Hour00:00

02:00

04:00

06:00

08:00

10:00

12:00

14:00

16:00

18:00

20:00

22:00Example Hourly Traffic Profile

(Traffic minutes per hour)

Extremely efficient

distribution

From Scratch Cards to E-Refill

Vendor Revenue Share Model

PredicableRegulatory

Regime

Continued Growth in Revenues and Cash Flow

• Strengthen local position and competitiveness

• Targeting the world’s next billion mobile subscribers

• Selective international expansion

Selective Expansion Criterias

• Market size and penetration growth

• Political stability

• Regulatory environment

• Cultural fit

• Strong business case

0

1000

2000

3000

4000

5000

6000

7000

8000

2003 2004 2005

Mobinil Vodafone

Egypt Opportunity

Facts• Population 2005 (millions) : 75• Penetration 2005 : 17%• GDP/pop 2005 (USD) : 1380• GDP growth : 5%

Strategic Rationale• The MENA region has untapped potential• Low penetration• Large and fast growing market• Utilize Telenor’s greenfield expertise

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2003 2004 2005

Mobinil Vodafone

Subscriber development (000)

Market share (%)

Vietnam Opportunity

Facts• Population 2005 (millions) : 84• Penetration 2005 : 10%• GDP/pop 2005 (USD) : 616• GDP growth : 8%

Strategic Rationale• Within a core region• Low penetration• Large and fast growing market

0

500

1000

1500

2000

2500

3000

3500

4000

2003 2004 2005

Vinaphone Mobifone Viettel S-fone

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2003 2004 2005

Vinaphone Mobifone Viettel S-fone

Subscriber development (000)

Market share (%)

Serbia Opportunity – Mobtel/Mobi63

Facts• Population 2005 (millions)* : 7.5• Penetration 2005 : 65%• GDP/pop 2005 (USD) : 2.500• GDP growth (2006-2007) : 5%

* Excluding Montenegro and Kosovo

0

500

1000

1500

2000

2500

3000

3500

2003 2004 2005

Mobte l/Mobi63 M TS (Te lekoM Srbija)

0 %

10 %

20 %

30 %

40 %

50 %

60 %

70 %

80 %

90 %

100 %

2003 2004 2005

Mobtel/Mobi63 MTS (Telekom Srbija)

Strategic Rationale• Within a core region• Synergies with Promonte and Pannon

Subscriber development (000)

Market share (%)

Concluding Remarks

• Strengthen local position and competitiveness

• Targeting the world’s next billion mobile subscribers

• Selective international expansion

Continued profitable growth