"Norway Telecommunications Report Q4 2012" Now Available At Fast Market Research

New Fixed Networks market report from Business Monitor International: "Norway Telecommunications Report Q4 2012"

by Bill Thompson

(WireNews+Co) - Boston, MA - 27 October 2012

BMI View: Norway's telecoms markets is one of the highest value markets in the world on a per capita basis, and furthermore it is one of the most technologically developed with high prevalence of wireless data services, smartphones and value-added services. However, while Norway's high income levels support high ARPUs, operators are nonetheless under similar pressures to their peers across Europe. The regulator, the NPT, has implemented cuts to mobile termination rates that continue in 2012 and 2013 and that have squeezed operator revenues - while the threat of consumer IP substitution also looms. The market therefore has a bright outlook but with a number of significant threats, if less amplified than in much of the rest of Europe.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/464530_norway_telecommunications_report_q4_2012.aspx) (http://www.fastmr.com/prod/464530_norway_telecommunications_report_q4_2012.aspx)

Key Data:

- Mobile subscription growth has remained robust to June 2012, at 4.4% y-o-y. However, we expect this to slow markedly in the coming quarters and years due to high penetration rates.
- Monthly blended ARPUs saw a seasonal increase in Q212, and Telenor's was even up y-o-y. However, the limits of pre-to-postpaid subscription migration and the effect of mobile termination rates is likely to see declines in ARPU return in H212 and H113.
- The broadband market has continued to grow robustly, with dedicated mobile broadband outperforming fixed. Breaking down fixed broadband subscriptions by technology, there has been a clear bias towards higher speed technology, notably cable and fibre, which compensated for the 11.1% decline in DSL subscriptions. BMI forecasts these trends to continue in the medium term.

Key Trends And Developments

Mobile termination rate (MTR) cuts were implemented in July 2012 and scheduled for January 2013, which will see Telenor and NetCom's MTR cut from NOK0.3 per minute in H112 to NOK0.15 per minute in H113. Meanwhile, Tele2's MTR will fall from NOK0.4 per minute to NOK0.15 per minute over the same period. As a result of these cuts, we forecast a steeper decline in ARPU in 2012 and 2013, before a more gradual decline in the latter part of our forecast period. It should, however, be noted that MTR cuts can have a positive impact on bottom-line performance by reducing operating costs.

Ownership changes could change the complexion of the fixed broadband market. It was reported in May 2012 that TeliaSonera was considering selling the second largest fixed wireline provider NextGenTel. Swedish business daily Dagens Industri reported that TeliaSonera issued an investment memorandum to potential buyers of NextGenTel, estimating the sale could raise SEK1-1.5bn (US$139-209mn). Further, it has also been reported that Quadrangle and Goldman Sachs Capital Partners have decided to sell their stakes in cable operator GET. It has been reported the sale will take place in H212 or 2013 and could raise around EUR1bn.

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