Norway-based communications, IT and media company Telenor is seriously considering putting up a telecommunications company in the country to rival communications giant Globe Telecom and Smart Communications Inc.
“We are focusing on Asia and the Philippines is an interesting target,” Einar Bore, director of business development of TelenorAsia said in an interview at the sidelines of yesterday’s Norway Investments held at the Peninsula Manila.
Bore is in the country, together with several Norwegian businessmen to review investment prospects in the country.
For his part, Norway Ambassador Stale Torstein Risa said the local telecommunications market is ripe for the entry of a third major player.
“I have a good feeling this market is right for a strong innovative competitor. The future is bright for a third player in this market,” Risa explained.
Telenor is currently studying its investment prospects in the Philippines.
“They are continuing their due diligence work. I am just not sure what stage they are in now,” the ambassador said.
He said Telenor is not in a hurry to make a decision given the sizeable amount needed to put up a telecommunications firm. “It may take many months to a year,” he said.
In Pakistan where Telenor is the second largest telecommunications firm, the company invested $1 billion.
Risa said top executives of Telenor have even met with Trade Secretary Peter B. Favila to discuss their plans of locating in the Philippines. He said Favila was very receptive and excited at the prospect of a new player in the telecommunications industry.
Risa said this is not the first time Telenor has expressed interest in investing in the country. He did not say why the past investment did not push through.
“They have renewed their interest and are seriously looking at the market,” Risa said.
He reported that currently, Telenor is looking for a local firm to partner with. This is because under the Philippine constitution, a foreign firm must have a local counterpart.
“The Philippines is an attractive place to invest. The market has challenges but foreign firms are interested in the country,” he noted.
Telenor is emerging as one of the fastest growing providers of mobile communications services worldwide with ownership interests in 12 mobile operators across Europe and Asia. Telenor is also the largest provider of TV services in the Nordic region.