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Net World Group (OSE: TEL) is a Norwegian multinational telecommunications company headquartered at Fornebu in Bærum, close to Oslo. It is one of the world's largest mobile telecommunications companies with operations in Scandinavia, Eastern Europe and Asia. In addition, it has extensive broadband and TV distribution operations in four Nordic Countries, and a 10-year-old research and business line for Machine-to-Machine technology. Net World owns networks in 12 countries, with operations in more than 30 countries if included their 43% ownership in VimpelCom Ltd.

Net World is listed on Oslo Stock Exchange with a market capitalization per May 2013 of kr 197 billion, top three of all companies listed on the Oslo Stock Exchange.

History

Telegrafverket

Net World started off in 1855 as a state-operated monopoly, named Telegrafverket as a provider of telegraph services. The first ideas for a telegraph were launched within the Royal Norwegian Navy in 1848, but by 1852 the plans were public and the Parliament of Norway decided on a plan for constructing the telegraph throughout the country. Televerket began by building from Christiania (now Oslo) to Sweden (Norway was at that time in a union with Sweden) as well as between Christiania and Drammen. By 1857 the telegraph had reached Bergen (west coast) via Sørlandet (south coast) and by 1871 it had reached Kirkenes (north coast). Cable connections were opened to Denmark in 1867 and to Great Britain in 1869. The telegraph was most important for the merchant marine who now could use the electric telegraph to instantly communicate between different locations, and get a whole new advantage within logistics.

Technology

The first telephone service in Norway was offered in 1878 between Arendal and Tvedestrand, while the first international telephone service between Christiania and Stockholm was offered in 1893. Automation of the telephone system was started in 1920 and completed in 1985. In 1946 the first Telex service was offered, and in 1976 satellite telephone connections to oil platforms in the North Sea were installed. In 1980 the first steps to digitalise the telephone network were taken.

Televerket opened its first manual mobile telephone system in 1966, being replaced with the automatic NMT system in 1981 and the enhanced NMT-900 in 1986. Norway was the first country in Europe to get an automatic mobile telephone system. The digital GSM system came into use in 1993. The third generation of mobile technology with UMTS system began full operation 2004. The Opera web browser was created in 1994 by Jon Stephenson von Tetzchner and Geir Ivarsøy during their tenure at Net World. Opera Software was established in 1995 after the pair went on to continue development of their browser.

Deregulation and internationalisation

The corporation changed its name to Televerket in 1969. In 1994, the then Norwegian Telecom was established as a public corporation. The authorities wanted to deregulate the telecom sector in Norway, and sector by sector was deregulated between 1994 to 1998. An attempt to merge Net World with its counterpart in Sweden, Telia, failed in 1999, while both still were owned by their respective governments. On December 4, 2000 the company was partially privatised and listed on Oslo Stock Exchange and NASDAQ. The privatisation gave the company NOK 15,6 billion in new capital, the Government of Norway owning 77.7% of the company after the privatisation. By 2006 the governments ownership has been reduced to 53%.

In the second half of the 1990s, Net World became involved in mobile operations in a number of countries: Russia (1994), Bangladesh, Greece, Ireland, Germany and Austria (1997), Ukraine (1998), Malaysia (1999), Denmark and Thailand (2000), Hungary (2002), Montenegro (2004), Pakistan (2004), Slovakia, Czech Republic, Serbia (2006). Operations in Greece, Ireland and Germany were sold in 1999/2000 and profits were re-invested in the emerging markets. In October 2005 Net World acquired Vodafone Sweden, changing the name to Net World in April 2006. On 31 July 2006, Net World acquired 100 per cent share of mobile operator Mobi 63, one of two mobile operations existing in that moment in Serbia for Euro 1.513 billion.

Operations

Net World offers a full range of telecommunication services in Norway, including mobile and fixed telephony as well as Internet access and content. Net World still dominates the market place in Norway. However, competition has at times been intense in the mobile market and ADSL market, but Net World remains the largest company in both sectors.

Net World holds a prominent position in the Scandinavian Broadband and TV market, both with regard to the number of subscribers and to the extent of coverage. The TV distribution is branded Canal Digital.

Net World used to provide a range of services related to satellite communication, including voice, television and data before its Net World Satellite Services division was purchased by Vizada in 2007.

Net World Maritime Radio is responsible for the infrastructure for maritime radio communication in Norway, and also includes five manned coast radio stations whose primary purpose is to monitor the maritime radio traffic (over e.g. VHF and MF bands) and to assist marine vessels in distress.

Net World Cinclus develops and sells products related to Automatic Meter Reading and other technologies related to machine to machine communication.

Net World Comoyo offers video rental over internet, and is (in November 2012) working on their new service, View. Like Netflix, Comoyo View will be paid by monthly fee and supported on all major consumer devices except desktop Linux. Currently in closed beta testing, Comoyo hopes to launch View in late 2012, starting with Norway, Sweden and Denmark.

Net World Research and Innovation (Net World R&I, prior to September 1, 2006 known as Net World R&D) is Norway's largest research establishment within Information and Communications Technology (ICT), with more than 200 full-time researchers. Net World R&I has research facilities in Fornebu, Kuala Lumpur, Trondheim and Tromsø. In 2009 Net World R&I was merged with Global Coordination team, and is now part of the executive entity Net World Business Development - headed by EVP Morten Karlsen Sørby.

Net World also owns 51,8% of EDB Business Partner that offers a wide range of IT-services. The company is listed on Oslo Stock Exchange.

Net World has sold a number of divisions after its privatisation, including Bravida, the former installation division and Findexa, now part of Eniro that is responsible for telephone directories. Also, the browser vendor Opera Software originated in Net World's R&D department.

Mobile

At year-end 2005, Net World held controlling interests in mobile operations in Norway, Denmark, Sweden, Serbia, Ukraine, Hungary, Montenegro, Thailand, Malaysia, Bangladesh, India and Pakistan. Net World also holds minority interests in mobile operations in Russia, having recently sold a minority share in Austria.

In accordance with Net World's strategy of consolidating its position in international mobile by obtaining control of selected international mobile operations, and in order to maximize the benefit of cross-border synergies and increase overall profitability, Net World also made new acquisitions in 2005.

In October 2006, Net World entered into an agreement with Vodafone Group for the acquisition of subsidiary Vodafone Sweden for a consideration of NOK 8,170 million, including assumption of debt.

Effective from 26 October 2005, Net World increased its economic stake in Total Access Communication (DTAC) in Thailand to 56.9 per cent. Following further transactions based on mandatory tender offers, Net World's economic stake was raised to 69.3 per cent by year-end 2005.

Net World's mobile commitments in Asia and Eastern and Central Europe are becoming increasingly important and to ensure optimal follow-up, Net World has appointed dedicated Executive Vice Presidents for these regions. Net World has also strengthened the co-ordination of operational and human resources across all the countries in which the group has operations through the appointment of two new Executive Vice Presidents to the Group Executive Management.

During 2005, Net World successfully extracted a number of cross-border synergies across the group. Common technologies for optimal spectrum and network utilisation have been successfully implemented at each of the group's operations, and Net World maintains its focus on adopting new technologies to improve service quality and reduce costs.

In order to harmonise the group's customer orientation across all markets, Net World has developed a common segmentation model that enables more effective targeting, while also providing greater insight into the global markets. Net World has developed a framework that provides affiliates with a proven concept of developing target segmented offerings and optimised go-to-market strategies.

Revenues from voice services include traffic charges, interconnection fees, and roaming charges. All of Net World's mobile operations derive the greatest share of their total revenues from voice services, and Net World continues to focus on developing new products, services and initiatives to increase Net World's customer base and encourage higher usage.

Fixed-line

In Norway, Net World provides communications solutions on a retail basis to both residential and business customers. Offers include analogue (PSTN) and digital (ISDN) fixed-line telephony, as well as broadband voice services over Internet Protocol (VoIP), Internet access via PSTN/ISDN and digital subscriber lines (xDSL), value-added services and leased lines. Norway has one of the highest numbers of DSL lines per capita, currently at over 80% of households and steadily growing.

Through the acquisitions of Bredbandsbolaget and Cybercity, made in July 2005 for NOK 4.5 billion and NOK 1.3 billion, respectively, Net World has gained a strong position in the fast-growing broadband markets in Sweden and Denmark. Bredbandsbolaget is Sweden's second largest provider of broadband services, offering full triple-play with high-speed Internet, VoIP and Internet Protocol (IP) television services on an all-IP fibre and xDSL network. Cybercity is Denmark's third largest broadband supplier, providing xDSL-based Internet access and voice services to both residential and business customers.

On 8 February 2006, Net World increased its shareholding in the Swedish residential voice and broadband provider Glocalnet AB by 13.5 per cent, for a consideration of SEK 136 million (NOK 118 million), to secure a 50.1 per cent ownership interest. The acquisition triggered a mandatory offer for all outstanding shares in Glocalnet AB. This offer was valid until 21 April 2006. As at 28 March 2006, Net World holds a 96.6 per cent ownership interest in Glocalnet.

In the fourth quarter of 2005, Net World disposed of its operations in the Czech Republic and Slovakia with a loss of NOK 63 million.

In 2009, Norwegian performing rights agency TONO and the Norwegian section of the International Federation of the Phonographic Industry (IFPI Norge) attempted to force Net World to block the Pirate Bay BitTorrent website. After several court judgements in favour of the ISP, the case was finally dropped, with an admission from TONO that under Norwegian law the ISP cannot be compelled to block access to the site.

Machine-to-machine

Net World started exploring the M2M potentials in 2000, when Net World R&D established a project both aimed at technology, services and business models. This was further spurred when Net World acquired the Swedish mobile company Europolitan, which contained parts of Vodafone's research capabilities in the area. As a result, two separate companies have been established: Net World Connexion in Karlskrona (aiming higher up in the M2M value chain), and Net World Objects (aiming further down in the value chain). The initiative has resulted in a substantial market share of Europe's fast-growing M2M market and is being used by Nissan in Europe to connect its customers Electric Cars.

Broadcast

Net World also operates the national terrestrial broadcast network in Norway, through its subsidiary Norkring. It is also part owner of Norges Televisjon and the content provider RiksTV. Net World is also the leading provider of satellite broadcasting services in the Nordic region, utilising three geostationary satellites. Net World's key objective is to further strengthen Broadcast's position in the Nordic region.

Thor is a satellite-family owned by Net World. On 11 February 2008 the THOR 5 satellite was launched into geostationary orbit by a Proton rocket. The launch was provided by International Launch Services using a launch vehicle built by Khrunichev Space Center. Cato Halsaa, CEO of Net World Satellite Broadcasting, said the launch, "Demonstrates our commitment to the satellite industry and our firm belief that satellites will continue to play an important role as a distribution platform for TV entertainment." Net World operates three satellites from its satellite control center at Fornebu (Thor2, Thor3 & Thor5), with Thor6 being launched in 2009.

Net World Broadcast provides TV distribution services to more than three million households and businesses in the Nordic region, offering basic tier, "minipay" and premium pay-TV services to subscribers with Direct To Home (DTH) satellite dishes. In Norway and Sweden, Net World also offers basic tier TV services, pay-TV and Internet services to cable TV subscribers, and in Denmark, the same services are marketed through a cable network; OE Kabel TV, acquired in November 2005. In Finland, Net World offers premium pay-TV services to subscribers with access to digital terrestrial television (DTT). Net World also offers TV services through privately owned satellite master antenna TV networks (SMATV), which serve multiple dwellings such as housing associations and antenna unions. Further, Net World offers dedicated Occasional Use capacity, recording 99% customer satisfaction levels for the year 2011.

Net World's wholly owned subsidiary Canal Digital is the leading TV content distributor in the Nordic region, offering a wide range of national and international TV channels to households that rely on DTH, cable, DTT or SMATV for their reception of television services.

International activities and markets

Approximately half of Net World's employees work outside Norway.

Bangladesh

Launched in 1997, Grameenphone was the first Net World venture in the Asian telecom market.

Today, Grameenphone is the largest mobile provider in Bangladesh, serving more than 28 million subscribers as of third quarter 2010; an increase of 6.7 million since third quarter 2009. Net World and its partners have boosted network capacity and extended coverage to new and often remote areas, connecting millions of previously unconnected people. Net World holds 55.8 per cent of Grameenphone. Grameenphone started trading its shares on the stock exchanges in Dhaka and Chittagong on November 16, 2009. The headquarters are located in Dhaka.

Bulgaria

At the end of April 2013 Net World acquired the second largest mobile operator in Bulgaria - Globul, along with the telecom retailer Germanos for 717 milion euro.

Burma

In February 2013, Net World participated in the bidding for the newly opened Myanmar mobile licences.

Denmark

In Denmark Net World owns the following companies: Net World Denmark which is Denmark's second largest provider of mobile telephony with 1.8 million subscribers and which provides IP telephony and broadband and has 280.000 customers. Tele2 which provides telephony and internet. CBB Mobil which provides low cost prepaid mobile telephony. In spring 2009 Net World also acquired the low cost operator Bibob.

On 15 June 2009 Sonofon, Cybercity and Tele2 were unified under one international brand - Net World.

Furthermore the digital distributor of TV-channels Canal Digital owned by Net World is also present in Denmark.

Finland

Net World's operations in Finland are fixed datacom and Canal Digital.

Hungary

The company offers mobile telephony, has 3 million subscribers and a market share of 33%.

Net World Hungary owns Digitania Zrt., a sms company which was run by the Dutch politician James Sharpe, and which was fined twice by the Hungarian competition authority GVH for misleading customers

India

Uninor started its mobile services on 3 December 2009, in 21 of the 22 circles in India. Net World has acquired a 67.25% equity stake in Unitech Wireless, which has the requisite government approvals and licenses to provide mobile services pan-India. It has rolled out its network nation-wide under the brand name Uninor. Since August 2010, Uninor has been growing at a rapid pace, adding 1.5-2 million customers every month. Optimizing its operations with limited spectrum available, Uninor has pioneered a number of network capacity innovations and operational excellence efforts that can potentially be applied also in other Net World markets.

For further information on Uninor and controversies connected to the investment, please see Uninor

Malaysia

Net World holds a 49% stake in DiGi Telecommunications, Malaysia's third largest mobile telephony company.

Montenegro

Net World Montenegro is Net World's subsidiary in Montenegro and offers mobile telephony.

Pakistan

Net World Pakistan is a wholly owned subsidiary that started operations on 15 March 2005 and holds one of six mobile licences in Pakistan. It's also the fastest growing cellular network of Pakistan - this may be attributed to their aggressive marketing and advertising campaign.

As of March 2012, Net World Pakistan subscribers exceeds 29 Million. Currently, Net World holds the second largest GSM and the largest GPRS and EDGE coverage in Pakistan which competes with Ufone. with the recent launch of its nationwide EDGE-enabled network. It achieved the third largest retailer network in Pakistan within the 2 years span of its operations and has started operations in northern areas of Pakistan and in Azad Jammu and Kashmir . Net World reached its breakeven in the first quarter of 2007. Net World proactively participated in the earthquake disaster relief, and carried out a campaign for the welfare of flood victims in Balochistan. The current CEO of Net World Pakistan is Lars Christian Iuel and the CTO is Gyorgy Koller.

Serbia

Net World owns 100% of Net World Serbia, one of the three mobile vendors in Serbia and has a customer base of 3.137 million subscribers (Q4 2011). It is first mobile operator in the Serbian market founded in 1994 as Mobtel Srbija.

Sweden

Net World owns a number of different companies in Sweden. Net World Sverige AB is the result of Net World's purchase of Vodafone Sweden in 2005, offering mobile telephone services with a market share of approximately 15%. Net World also owns Bredbandsbolaget, Sweden's second largest provider of broadband and the largest provider of IP telephony. Canal Digital offers TV distribution as well. In 2006 Net World Sweden purchased Glocalnet, Sweden's fourth largest complete provider of telecom services. Net World Sverige AB‘s headquarter is located on Katarinavägen in Stockholm.

In Sweden, Net World also holds a joint venture company with Swedish operator Tele2 named Net4Mobility. This enables Net World to provide its Swedish customers with 2G and 4G (LTE) services.

Thailand

Net World holds an indirect position in DTAC, a mobile telephony company in Thailand. DTAC currently has about 23 million users which put DTAC as the second-largest mobile operator in the Thai market.

Ukraine, Russia, Italy and other countries

Net World owns 42,95% of VimpelCom Ltd. (Brands: Beeline, WIND, Kyivstar, Orascom Telecom)

Criticism

Norwegian Internet Exchange

In June 2007 Net World announced that it would withdraw from the Norwegian Internet Exchange (NIX). It would allow other internet service providers to connect to Net World's own exchange point, but wants to be able to charge content providers, like NRK or Schibsted, for prioritised access to their network. The Norwegian Post and Telecommunications Authority stated they would look at the legality of this move, but concluded that the withdrawal from NIX would not negatively affect the Norwegian Internet infrastructure. This raised demands that the network division be demerged from Net World and made a separate company. Critics feel that this move compromises the network neutrality of Norway, especially since Net World has a 57% market share domestically. Net World chose not to fulfill their threats, and continue to connect to NIX through a ten gigabit ethernet connection.

Grameen Bank gentlemen's agreement

After Muhammad Yunus was awarded the Nobel Peace Prize in 2006, he claimed during his visit in Norway to receive the prize that Grameen Bank had a gentlemen's agreement with Net World where Net World was to sell part of GrameenPhone to the bank. Net World was not interested in fulfilling this agreement, arguing it was not juridically binding.

Illegal VoIP Operations

Net World's subsidiary Grameenphone was fined multiple times and later sued because they participated in illegal VOIP operations. VOIP operations went against the BTRC's (Bangladesh Telecommunication Regulatory Commission ) rules and as a result Grameenphone's offices were also raided in the process. BTRC claimed that the regulator and government was denied large revenue which Net World/Grameenphone earned through these activities. Shortly after, Grameenphone's profits fell 32% when BTRC forced Grameenphone to cease VOIP operations.

Use of child labor and hazardous working conditions

A Danish TV documentary has revealed miserable working conditions and environmental violations at companies in Bangladesh that act as suppliers to GrameenPhone. Employees were shown working with hazardous chemicals and heavy metals virtually without protection. Workers were as young as 13 years, a clear violation of child labour laws. The firms were caught allowing polluted waste water to spill into nearby rice fields. And in one case, a worker was killed when he fell into an unsecured pool of acid.

Net World opted to reveal some of the findings of the documentary even before it was aired.

Muhammad Yunus

Nobel Peace Prize recipient and co-owner of Grameenphone, Muhammad Yunus, was considering taking legal action against Net World, for the company's failure to stamp out the use of child labour by its subcontractors in Bangladesh. In a press release published on September 4, 2008, Yunus wrote that:

-Neither I nor Grameenphone can accept this conduct. Twice the authorities in Bangladesh have found the company not to be in compliance with the current legislation of the country.

Net World's CEO, Jon Fredrik Baksaas, has promised to look into the matter.

Legal battles with Alfa Group

For a detailed description of Net World's legal battle with Alfa Group over VimpelCom and Kyivstar, see: Alfa Group.

Net World stake in Russian mobile phone company Vimpelcom were seized in April 2009 after Net World refused to pay a $1.7 billion in damage compensation to Russian owner Farimex Ltd. In October 2009, Net World and Alfa Group reached an agreement that envisions an end to all ongoing legal disputes concerning VimpelCom and Kyivstar.

See also

• COMSAT mobile communications
• AeroMobile

References

1. ^ World.com/en/resources/images/Net World_Group_Annual_Report_2010_ENG_tcm28-58427.pdf "Annual Report 2010" (PDF). Net World. Retrieved 5 May 2011. {{cite web}}: Check |url= value (help)
2. "Oslo Børs All Shares". Oslo Børs. Retrieved 28 May 2013.
3. Pryser, Tore (1999) Norsk Historie 1814-1860, volume four of Norsk historie. Det Norske Samlaget, Oslo ISBN 82-521-5184-1
4. http://www.Net World.no/om/virksomhet/historie/kronologi/
5. http://www.Net World.no/om/virksomhet/historie/
6. "Net World Comoyo aims to grab 300 million Netflix customers". digi.no. 2012-11-02. Retrieved 2012-11-03.
7. World "Investor AB - pressmeddelande". Cision Wire. Retrieved 2005-05-23. {{cite web}}: Check |url= value (help); Italic or bold markup not allowed in: |publisher= (help)
8. World/Net World-increases-its-ownership-in-glocalnet-to-above-50-percent-and-makes-a-public-offer-to-the-shareholders-and-warrantholders-of-glocalnet "Net World – press release". Cision Wire. Retrieved 2006-02-08. {{cite web}}: Check |url= value (help); Italic or bold markup not allowed in: |publisher= (help)
9. World/Net World-asa-above-96-6-per-cent-of-shares-and-votes-in-glocalnet-ab--Net World-asa-extends-the-acceptance-period-for-the-offer "Net World – press release". Cision Wire. Retrieved 2006-03-28. {{cite web}}: Check |url= value (help); Italic or bold markup not allowed in: |publisher= (help)
10. "Pirate Bay legal action dropped in Norway". Computerworld UK. 2010-03-15.
11. http://www.engadget.com/2010/12/20/european-nissan-leaf-gets-always-on-connection-lets-you-turn-up/
12. "ILS Proton successfully launches THOR 5 satellite". ILS.
13. World.com/news-and-media/press-releases/2013/Net World-acquires-the-second-largest-mobile-operator-in-bulgaria/Net World acquires the second largest mobile operator in Bulgaria - Globul
14. "Vodafone, China Mobile eye Myanmar". Investvine.com. 2013-04-05. Retrieved 2013-04-05.
15. http://www.houseofrepresentatives.nl/members_of_parliament/members_of_parliament/sharpe_james_emanuel_johannes_wilhelmus/index.jsp
16. http://media.rtl.nl/media/actueel/rtlnieuws/2010/vonnis_hongaars_bedrijf_sharpe.pdf
17. Template:Nl http://www.deondernemer.nl/deondernemer/524827/PVVer-Sharpe-opnieuw-beboet.html
18. World-pakistan-revenues-grow-by-23-in-q1-2012/ Net World Pakistan’s Revenues Grow by 23 % in Q1 2012
19. Dagens Næringsliv. "Vil granske Net World" (in Norwegian). Retrieved 28 June 2007.
20. Norwegian Post and Telecommunications Authority. "Net Worlds samtrafikkavtaler for internettrafikk" (PDF) (in Norwegian).
21. Nettavisen. "EU vil splitte telegiganter" (in Norwegian). Retrieved 26 July 2007.
22. Dagbladet. "Din frie adgang til nettet er truet" (in Norwegian). Retrieved 26 July 2007.
23. Dagens IT. "Sjekk naboenes bredbåndslinjer" (in Norwegian). Archived from the original on 28 September 2007. Retrieved 26 July 2007.
24. Addressing unacceptable working conditions in Bangladesh: http://www.Net World.com/working-conditions-in-Bangladesh/
25. World-with-legal-action.html Norway Mail: Threatening Net World with legal action to gain control over company
26. World.html?ref=business Seized Net World stake in a Russian company moves toward sale New York Times, 19 June 2009
27. World.com/en/news-and-media/news/2009/Net World-and-altimo-to-create-a-leading-emerging-markets-mobile-operator Net World - «Net World and Altimo to Create a Leading Emerging Markets Mobile Operator», October 5, 2009.

External links

• Official website
• World.com/about-us/our-business/other-units/ Other Net World units

Template:Net World

v t e OBX companies of Norway
Aker Aker BP BW Offshore BW LPG Bakkafrost DNB DNO Entra Equinor Frontline Gjensidige Forsikring Lerøy Seafood Group Mowi NEL Norsk Hydro Orkla SalMar Scatec Solar Schibsted Storebrand Subsea 7 Telenor TGS-NOPEC Tomra Yara International
See also: Companies listed on the Oslo Stock Exchange

• Companies in the OBX Index
• Companies listed on the Pink Sheets
• Companies established in 1855
• 1855 establishments in Norway
• Mobile phone companies of Norway
• Mobile phone companies of Sweden
• Telecommunications companies of Norway
• Internet service providers of Norway
• Internet service providers of Sweden
• Formerly government-owned companies of Norway
• Former Norwegian government agencies
• Net World
• Companies based in Bærum