Telecommunications create new opportunities for future growth Cecilia Edström Senior Vice President...

Telecommunications create new opportunities for future growth

Cecilia EdströmSenior Vice President andHead of Group Communications

TeliaSonera - in brief

• Result of a merger of the Swedish incumbent Telia AB and Finnish incumbent Sonera Corporation in December 2002

• Head office in Stockholm, Sweden

• 2008 net sales USD 15.7 billion

• Approx. 32,200 employees

• Market capitalization around EUR 16.5* billion or USD 23.5* billion

• Shares listed on Stockholm and Helsinki stock exchanges

• Largest shareholders - Swedish state (37.3%) and Finnish state (13.7%)

* As of June 1, 2009

Our footprint

• More than 453 million population

• Total number of subscriptions almost 137 million

– of which ~44 million in the majority-owned operations

– and ~93 in the associated companies

Applications

WebBrowser & search engine

Content distribution

Hardware

Changing competitive dynamics

Access Telcos

5

Six focus areas

• World class service company

• Quality in networks

• Cost efficiency

• Migration from traditional fixed-voice services

• New B2B sales approach

• Growth in Eurasia

Different levels of market maturity

Source: TeliaSonera (Q32008 Eurasia data. Pre-paid: TeliaSonera customers only) Analysys (Q42007 for Nordic & Baltic. Pre-paid: industry data)

Denmark124% penetration22% pre-paid5.5 M population

Sweden115% penetration46% pre-paid9 M population

Latvia103% penetration43% pre-paid2.3 M population

Nepal14% penetration99% pre-paid29 M population

Uzbekistan36% penetration95% pre-paid27 M population

Kazakhstan93% penetration80% pre-paid15 M populationNordic & Baltic:

• Growing mobile data traffic (+467% Sept 07-Sept 08)

Eurasia:• High voice growth• Low data traffic

IPIP– 3G up to 14.4 Mbit/s

From 1G to 4G in less than 30 years

Voice

WAP

Data

AnalogueAnalogue– NMT

DigitalDigital– GSM/GPRS from 9.6 kbps

4G4G100Mbit/s

Mobile accessMobile access

Access anywhere, anytime

0

10

20

30

40

50

2002 2007 2012

Sources: Cisco, 2008

Global IP traffic… will nearly double every two years

(2007-2012)

Exa

byte

s /

mo

nth

5 exabyteper month

7 exabyteper month

44 exabyteper month

Data traffic is increasing faster than customers

Mobile data traffic and customersTeliaSonera Mobility Services (Nordic and Baltic)

Source: TeliaSonera

3,000

1,000

2,000

Data traffic

+479%

September 2007

December 2008

January 2008

Data subscribers

+135%

Megabytes (‘000 000)

Current trends create new opportunities

• Many people feel unable to cope withday-to-day activities withouttelecommunications

• On-line access keeps people up to date

• People make good use of communicationtechnology in their work

• People feel they need access to theinternet to do a good job

• Companies think a great part of businesstravel could be reduced by using moderncommunications

Findings from TeliaSonera Trend report 2009

Strong focus on sustainability

Four key areas

• Bridging the digital divide

• Meeting the demand for sustainable communication services

• Becoming a world-class service company

• Maintaining high ethical standards in all our markets

Bridging the digital divide

• TeliaSonera helps to bridge the ’digital divide’ by bringing our communications infrastructure and expertise to emerging markets and by providing access through low-cost solutions in all our markets

• We believe that society is strengthened when all citizens, whatever their backgrounds, can connect to the digital community in a safe way

Highlights 2008

• Top rating in Carbon Disclosure Project Leadership Index

• Total carbon dioxide emissions per subscriber from wholly-owned companies fell by 11%

• In Sweden 2001-2008, CO2 emissions reduced by 70%

Over 10 years of environmental focus

TeliaSonera contributing to global sustainability

• Responsible use of resources – energy efficiency

• Utilizing and promoting modern communicationservices, e.g. telemeetings, videoconferences

• Educating customers for benefitting from telecomservices and improving digital literacy

Government and Business co-operation in digital development

• Need for national clear ambition and strategic vision– Governmental bodies need detailed knowledge of IT– Cooperation with industry organisations

• The fundamentals for cooperation – Ongoing dialogue

The telecom industry and governmental bodies need to be in continuously contact regarding the rapid ongoing development to seek and catch opportunities

– Education and information

To be able to provide affordable mobile services with good coverage the telecom industry needs:

• Frequencies allocated at reasonable terms

• Long-term frequency strategy to ensure certainty for future investments

• Customers- services for daily use- quality of services- easy-to-use services

• Society- sustainable development- services that increase efficiency- job opportunities

• Shareholders- take lead in the development

of the industry

Telecommunications - a healthy and vibrant industry

TeliaSonera adds value to