Telenor to Replace Mobile Network

OSLO/FORNEBU, Norway -- Telenor is going to replace its entire mobile services infrastructure in Norway during the next years, with the aim of creating a flexible and cost efficient platform for mobile services. Huawei and Starent Networks have been chosen as the technology providers for the wireless network and mobile core network, respectively.

The scope of the agreement includes the delivery of equipment across technology generations and frequency bands, as well as multi-base stations for 2G, 3G/UMTS and 4G/LTE. The change of providers will also entail digitisation, with the entire wireless network and core network being migrated to an IP-based platform.

"This is the biggest upgrade of the mobile network in Norway we have ever carried out. It will create a solid and flexible base for further developing the services offered by the Telenor mobile network and the quality of those services. Our aim is to provide customers with better, more innovative services across the country. This means better in terms of capacity, speed and stability," explains Ragnar Kårhus, head of Telenor Norway.

The replacement of infrastructure will represent a moderate increase in investments over the next two years, and thereafter improve our cost and capex structure.

Providers were selected on the basis of a thorough tender process. The providers were assessed according to technical requirements and specifications, future plans, commercial terms and conditions that could ensure stable, effective and predictable cooperation.

"All the providers were evenly matched, but in the end Huawei and Starent Networks emerged as the winners. It was a combination of technical quality, reliability in terms of handling a large-scale equipment replacement operation and commercial terms that was the deciding factor," says Ragnar Kårhus.

The agreement will run for six years and it must be given final approval by the Board of Directors at Telenor ASA.

"Huawei has also developed a very exciting concept where partners are closely involved in developing future services and infrastructure. This innovation centre was also a factor that stood out in the overall assessment. It provides us with an opportunity to further develop our role as a leading mobile operator and create conditions for technology development," adds Kårhus.

"We feel proud that we have won this contract with one of the world's leading mobile operators in its own domestic market and we are looking forward to this very exciting collaboration," says Yu Chengdong, Senior Vice-President for Huawei, European Region.

"Telenor is a market leader because it focuses on providing a superior customer experience along with compelling services. We are pleased that Starent Networks can be involved in this venture as we are committed to Telenor's success and to providing solutions for their broadband multimedia networks," says Ashraf Dahod, president and chief executive officer at Starent Networks.

Telenor ASA (Nasdaq: TELN)

Huawei Technologies Co. Ltd.

Starent Networks Corp. (Nasdaq: STAR)