As a result an impairment loss of nok 41 billion was

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Unformatted text preview: erest petition seeking cancellation of 122 cellular phone licences granted by the Government of India in 2008, including 22 licences to Unitech Wireless (Uninor). As a result, an impairment loss of NOK 4.1 billion was recognised in the fourth quarter of 2011. For further information, please refer to the section “Events after the reporting period”. Other units Revenues in other units declined by 15% down to NOK 2.7, while EBITDA before other income and expenses was NOK -807 million in 2011 compared to NOK -263 million in 2010. More than half of the reduction is explained by the deconsolidation of EDB Business Partner from the third quarter of 2010, resulting in positive eliminations due to internal transactions within Other units segment last year. For supplementary segment information, reference is made to note 5 to the consolidated financial statements. DIGITAL SErVICES Positioning in new Internet-driven ecosystems is high on Telenor’s strategic agenda. The ability to offer a wide range of digital services, such as music, movies, storage, mobile health solutions, mobile advertising and innovative communication services, to our customers is central to our future development. Acting on this challenge, Telenor established the company ComoYo in 2011 with a focus on launching “over the top” digital services to consumers in close co-operation with Telenor business units, and with the potential for global expansion over time. Another important initiative in this field was announced in November, when Telenor and Google signed a global agreement. Mobile financial services offer new ways to use the mobile phone for banking and payment, based on Telenor’s distribution networks and co-operation with banks. There are tremendous opportunities within payment services and domestic and international remittances in countries such as Bangladesh and Pakistan, where Telenor is cover- ing previously unmet needs through a low cost distribution model. In more mature markets, Telenor’s main role is as a carrier of financial services for established service providers, adding value through providing secure electronic signature and identification. In a collaboration project financed by Norwegian Research Council, Telenor and the largest Norwegian bank DNB have tested a mobile payment solution based on NFC (Near Field Communication) enabled by mobile phones. Machine-to-machine (M2M) communication represents another growth area where Telenor has taken an active role. In 2011, the Nissan LEAF telematics system, with Telenor Connexion as an important contributor, won the GSMA award for “Best Mobile Innovation for Automotive and Transport”. M2M health services are also being developed. Telenor has, together with health care industry and technology partners, established an innovation project to actively meet the challenges of an aging population through innovative care technology. rESEArCh AND INNOVATION Research and innovation are vital to ensure future growth. Telenor has a broad approach to innovation, spanning from improvements in the core business, operational efficiency and industrialisation processes to strategic research, new business initiatives and the launch of innovative services. Telenor utilises open innovation with customers, industrial partners and with research institutions worldwide to secure access to cutting edge knowledge and services, including EU research programmes, participation in the global GSM A ssociation and various standardisation bodies. /page 10/ telenor annual report 2011 report from the board of directors 2011 Telenor is collaborating with academic partners and the industry to secure the best customer experience. In May 2011, the Centre for Service Innovation (CSI) was officially opened at the Norwegian School of Economics (NHH) in Norway. The CSI is backed by a consortium of the largest Norwegian service providers within telecom, banking and insurance, and national and international research groups. The Centre represents a new way of working and offers a unique opportunity for bridging research and business development. Increasing demand for data requires higher bandwidth and capacity. Therefore, cost per bit must be reduced to adapt to the new demands. Telenor explores the technological migration steps necessary to ensure Telenor’s future position as a mobile operator in the best way, working with issues such as service differentiation, infrastructure and spectrum sharing opportunities. More cost efficient utilisation of our networks is a target. In 2011, costs related to research and innovation that have been recognised in the income statement amount to NOK 0.8 billion (of which NOK 0.4 billion relates to research and development). This relates to research and innovation in technology, services, business models and processes. Telenor works on new services such as financial services, over-the-top services and M2M connectivity and on new group processes to industrialise operations across the Group. In addition Telenor has invested in innovation initiatives creating new infrastructure services...
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