Norway’s Telenor is struggling in Asia – Time to consider selling, says analyst

Telenor umbrellas on the streets of Myanmar’s capital Yangon in 2014. Photo: Heiko Junge / NTB

Norway’s telecom giant Telenor should consider becoming a purely Nordic company, says equity analyst in DNB Markets Frank Maaø to media DN.

E24 reports that the stock analyst has been following the company for the longest and due to legal feuds, ever higher tax claims, investment halt, and lower growth opportunities in the Asian market, Telenor should consider selling or merging in the Asian region and focus only on the Nordic Market he says.

“Telenor has struggled with demands from the authorities about the mobile operations they have in countries such as Bangladesh and Thailand. At the same time, Telenor will not provide more capital to the mobile operations in Pakistan. And in Malaysia, Telenor has entered into a merger agreement with a competitor and will now de-consolidate the business there,” the analyst says to DN.

On Thursday morning, it was announced that Telenor will sell its operations in Myanmar for NOK 900 million to the investment company M1 Group.

Telenor CEO Sigve Brekke however assures DN that the company has no plans to withdraw from the region and that the Asia strategy is firm. “Telenor will continue to be a strong Asian telecom operator with over 8,000 employees and approximately 160 million customers in the region even after this transaction,” he says.

About Mette Larsen

ScandAsia Journalist • Scandinavian Publishing Co., Ltd. • Thailand

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