The group had no significant payables or debt to

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Unformatted text preview: gian Post and Telecommunications Authority (“NPT”), coastal radio after an agreement with the Norwegian Ministry of Justice and Preparedness, services concerning Svalbard, wire services for ships, providing emergency lines for the police, fire department and ambulances. The Group receives compensation for providing SSO. In 2011 and 2010, the Group received NOK 90 million and NOK 90 million, respectively, under this agreement. In 2010, the Group received technology neutral licenses in the 900 MHz band. /page 74/ telenor annual report 2011 notes to the financial statements / telenor group The Group pays an annual fee to NPT and the Norwegian Ministry of Transport and Communications for delivering electronic communication services, including payments for frequencies and numbers. The fee was NOK 98 million and NOK 99 million in 2011 and 2010, respectively. The Group provides mobile and fixed telephony services, leased lines, customer equipment, Internet connections, TV distributions and other services to the state and companies controlled by the state in the normal course of business and at arms-length prices. The Group also purchases services, such as postal services, in the normal course of business and at arms-length prices. Details of such transactions are not included in this note. The Group sold transmission capacity and related services in the digital and analog terrestrial transmission network to Norsk Rikskringkasting AS of NOK 205 million in 2011 and NOK 204 million in 2010. Transactions with associated companies NOK in millions 2011 2010 sales to Purchases from sales to Purchases from 1 261 2 552 631 1 796 In 2011 and 2010, sales to associated companies include network access charges to Norges Televisjon AS of NOK 356 million and NOK 348 million, respectively. Sales in 2011 and 2010 include sub-leasing of sports rights to C More Group AB for NOK 144 million and NOK 139 million, respectively. In addition, sales in 2011 and 2010 include delivery of Nordic Connect and Managed Services to EDB ErgoGroup ASA of NOK 199 million and NOK 61 million, respectively. Purchases from associated companies in 2011 and 2010 include distribution rights from TV2 AS, TV2 Zebra AS and C More Group AB of NOK 1,126 million and NOK 1,081 million, respectively. Purchases in 2011 and 2010 also include purchases of IT services from EDB ErgoGroup ASA of NOK 446 million and NOK 170 million, respectively. A substantial part of the purchases in 2011 and 2010 concerns sales and marketing support for distributors of the Group’s products and services in Norway. Interconnect services with related parties in Pakistan and Bangladesh occured in 2011 due to the combination of VimpelCom and Orascom. Sales to associated companies amounts to NOK 372 million and purchases amounts to NOK 328 million. The Group’s shares in the associated company RiksTV AS are pledged as collateral for debt in the company. Furthermore, the Group has provided fulfilment guarantees of NOK 75 million in favour of the associated company Norges Television AS. For information of receivables on associated companies, see note 22 and 23. The Group had no significant payables or debt to associated companies as of 31 December 2011 and 2010. Transactions with subsidiaries have been eliminated on consolidation and do not represent related party transactions. See note 16 in the financial statements of Telenor ASA for a list of significant subsidiaries. The same applies to transactions with joint ventures that are consolidated proportionally, see note 21. For compensation of key management personnel, see note 36. / 35 / Commitments and contingencies The Group is involved in a number of legal proceedings in various forums. While acknowledging the uncertainties of litigation, the Group is of the opinion that based on the information currently available, these matters, except as discussed below, will be resolved without any material adverse effect individually or in the aggregate on the Group’s financial position. No provisions have been made for the legal disputes discussed in this note. For legal disputes, in which the Group assess it to be probable (more likely than not) that an economic outflow will be required to settle the obligation, provisions have been made based on management’s best estimate. See note 14 for tax disputes. Grameenphone 1) bTRC – Audit claim In April 2011, Bangladesh Telecommunication Regulatory Commission (BTRC) announced its intention to conduct an audit of the existing mobile operators in Bangladesh. As part of this initiative, BTRC appointed a Chartered Accountant firm for conducting the audit of Grameenphone. On 3 October 2011 Grameenphone received a claim amounting to approximately NOK 2.2 billion from BTRC referring to findings of the audit that the regulator carried out over a few months from April 2011 related to circumstances from the establishment of Grameenphone until today. Grameenphone has contended and clarified to BTRC and the audit firm that the acceptable audit norms and practices have not been followed during and after the audit a...
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This document was uploaded on 03/21/2014.

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