Market Outlook

Tele2 operates in 11 markets, each with its own characteristics. There is one common denominator: the world of telecoms is challenging and we are standing on the verge of a new era. In our industry, customer needs and expectations are in constant flux. At the same time, the competitive pressure calls for increased efficiency. In the long run, these are aspects that will require new business models in the industry. Our market regions include both emerging and mature markets, where cultural, economic and competitive differences are significant. The trend towards mobility is evident in all countries, although the level of maturity differs widely. In our mature markets, fixed and mobile voice revenues are forecast to decline, whereas the mobile voice market is still growing in our emerging markets. Still, mobile voice will remain a very strong revenue generator for many years to come. At the same time, new ways of communicating are gaining ground in all our markets. Attractively priced, innovative devices lead to changed user behavior. Customers demand more bandwidth in order to be able to be connected anywhere, anytime. Put shortly, Internet is fundamentally changing the way we communicate and the rapid increase in mobile data traffic will add significant revenues to the industry.

Tele2’s performance in the last year demonstrates the strength of the Group strategy and the ability to adapt to changes in the world around us. By providing the Best Deal, investing in growth markets, and focusing on cost efficiency, we have improved our cash flow and return on capital employed. But we can do more.