Overview by region

Tele2’s markets have been divided into four distinct regions in order to make the best use of the company’s resources: Nordic, Russia, Central Europe and Western Europe. These regions include both emerging and mature markets, where cultural, economic and competitive differences are significant. However, the trend towards mobility is universal, and is clearly evident in all countries. While mobile communication services are fairly standardized across different regions, the level of maturity differs widely. As a consequence, the focus of Tele2’s operations in each region is different. In the Western European region, Tele2 aims to maintain and harvest, while developing the corporate business segment. The Nordic region remains the cash flow generator of the Tele2 group as well as its test bed for new services. In Central Europe, Tele2 keeps growing and expanding businesses. Lastly, Russia is the growth engine of the group.

Tele2’s position and priorities also vary within the regions. Local market characteristics differ in many ways, even in the same country. Our green field operations, e.g. Kazakhstan acquired in 2010, are focused on land grab, brand awareness and price leadership. As challenger in Latvia and Estonia, Tele2 pays particular attention to price, market share, expected quality and network capabilities. As defender in many parts of Russia, in Sweden and in Lithuania, Tele2 focuses on retention, price stability, Value Added Services and quality.

While there are important local differences, Tele2 has established a number of general priorities in order to address opportunities and challenges for 2010. These objectives go beyond the local context and are common to all the regions and countries where we operate.

• Increasing customers’ perception of Tele2 as a supplier of attractively priced services that meet quality expectations.
• Maximizing Customer Lifetime Value (CLTV) by keeping churn rates to a minimum, while optimizing revenue from all customer segments.
• Securing high quality mobile networks.

These fundamental objectives will guide the company’s regional activities through 2010 and beyond.