Jon Fredrik Baksaas
President & CEO
Telenor Group
For a first-hand look at achieving growth through innovation, Jon Fredrik Baksaas, president and CEO, Telenor Group was invited to explain how his company grew in less than two decades from an incumbent operator in a Scandinavian country with fewer than 5 million inhabitants into a global telecommunications group. Baksaas has been president and CEO of Telenor Group since June 2002. During this period, the total number of subscriptions in Telenor Group's mobile operations has increased from 21 million in 2002 to 172 million today. With the imminent launch of its operations in India, the company’s geographic footprint will now cover more than 1.8 billion people.
Throughout the session, Baksaas described how Telenor Group had to look beyond its home market of Norway to find growth opportunities, thereby forcing them to think differently. “We started with the philosophy that the mobile phone will be a basic requirement for everyone,” he said. Now, Telenor Group operates in 14 countries and has been able to raise its current market position as the 6th largest operator in the global mobile industry (based on the total number of mobile subscribers) by aggressively making international acquisitions and focusing on having majority positions in many of its target countries.
Baksaas further demonstrated how Telenor Group was early in recognizing the growth potential for mobile communications in emerging markets. By following their belief in mobile as the main communication tool for all, a bold strategy for expansion and a robust business model, he has shown how Telenor Group has become one of the world’s largest mobile operators.
According to Baksaas, Telenor Group will continue to grow its customer base as they launch mobile services in India, the world’s largest untapped market. While price competition is brutal, this market represents significant growth potential, with merely 7% of India’s population having access to the Internet. Baksaas added: “Leveraging over 13 years of experience in Asia, we do believe that we have the competencies that can be replicated in a model that is much slimmer and flexible. Starting our operations in a new market is obviously requiring an excellent understanding of the cultural differences and competitive landscape as well as an adapted pricing strategy.”
He also elaborated upon Telenor Group’s strategy “Towards a Connected World” as a way to deliver value through service innovation with a strong focus on the socio-economic impact of the Internet in emerging markets. He also mentioned financial services, Machine-2-Machine and climate solutions as potential areas for growth. The industry will continue to experience challenges like increased competition, continued technological development and changing business models that a company would need to overcome to stay on its chosen path for growth. “Change is natural in the communications industry and standing still is not an option," said Baksaas.
With operations in some of the world’s most mature mobile markets and some of the fastest-developing countries, as well as a focus on innovation and organizational development, Baksaas concluded by detailing how Telenor Group will remain a driving force in the global telecommunications industry. Capturing growth in their three regions, strengthening operational performance and leveraging group scale and competence while ensuring capital discipline will definitely be key focus areas for the Telenor Group in the coming years, going forward the "Telenor Group Way", Baksaas declared.