Telia's new organisation opens up possibilities for structural changes

Telia's new organisation opens up possibilities for structural changes Telia is introducing a new organisation on April 1, 2001. Five new business and a combined sales and customer service unit for the business areas will provide a better platform for Telia to participate in the restructuring of the telecommunications industry. The new structure will also strengthen Telia's business orientation and facilitate the Group's internationalisation. "With the new combined sales unit, we will also intensify our sales to private customers and enterprises," commented Marianne Nivert, Telia's President and CEO. The new business areas are Telia Mobile, Telia International Carrier, Telia Networks, Telia Internet Services and Telia Equity. The combined sales and customer service unit for private customers and enterprises will be called Telia Sweden. Telia Research will also be moved out of the Enterprises business area and report directly to the CEO. The following people were appointed to head Telia's new business areas and Telia Sweden as of April 1: Telia Mobile - Kenneth Karlberg, who currently holds the same position. Telia International Carrier - Lars Rydin, currently President of International Carrier AB. Telia Networks - Jan Johansson, previously business area manager at the Vattenfall energy group. Telia Internet Services - Indra Åsander, currently Marketing Manager at Skanova. Telia Equity - Eva Lindqvist, currently manager of a project to broaden the ownership of units in the present Enterprises business area. Telia Sweden - Anders Gylder, currently head of the Business Solutions business area. Each business area is responsible within its product area for the Group's results in all markets, both in Sweden and internationally, and will thereby be given greater independence to conduct their operations. The business areas are co-ordinating all sales and customer service activities for all customers in Sweden under a single management. In markets where the business areas see synergistic benefits to co-operating, a common sales and customer unit will be formed, based on the same model used in Sweden. The sales organisation is being strengthened to make it easier for customers to find their way to the right Telia unit. Corporate staffs and business area staffs are also being reviewed. "The new organisation facilitates potential structural deals and partnerships, since it will be easier to follow the logic of each business area," says Marianne Nivert, President and CEO of Telia. "International initiatives will also be simpler to implement." The heads of the new business areas will comprise Telia's Group Management together with the new Executive Committee that has been appointed. The following people are members of the Executive Committee: Marianne Nivert, President and CEO, Bo Jacobsson, CFO, Lars Härenstam with special responsibility for corporate development and Jan Rudberg with special responsibility for new business development. Group Management also includes Michael Kongstad, head of Corporate Communications and Emanuela Pedrocco, marketing manager, Competence Market. The companies and units that belong to each business area are shown in the attachment to this release. The new organisation will be implemented on April 1. Comparable figures are expected to be distributed on April 10. For further information to journalists, please contact: Telia´s Press Office, +46 8 713 58 30 Telia Mobile Business Area The Telia Mobile business area is responsible for Telia's mobile network, for all mobile services, and for the development of integrated fixed/mobile services. The business area basically comprises the operations of the present Mobile business area. As a wholesaler and retailer, Telia Mobile offers network capacity and mobile services to private individuals and enterprises in the Nordic region, as well as mobile portal services in Europe (for example, Speedy Tomato). The business unit includes the following units/functions, among others: Telia Finland Oy, Luottokunta, (transferred from Business Solutions) and the fixed/mobile group from Telia TeleCom AB. Telia International Carrier Business Area The Telia International Carrier business area is responsible for international carrier business in Europe and the United States. The business area produces and sells international network services in the form of infrastructure and network capacity, and functions as a wholesale carrier of voice and IT traffic for operators and service providers. The business area basically comprises the operations that are conducted by Telia International Carrier today and the activities of Telia UK Ltd. Telia Networks Business Area The Telia Networks business area is responsible for Telia's fixed network, fixed telephony and data communications services, and for further developing IP infrastructure. As a wholesaler and retailer, Telia Networks offers network capacity and fixed telephony to customers. Operations are focused primarily on the Swedish market, but also on markets that Telia has developed earlier in the Nordic and Baltic Sea regions. The business area also comprises Telia.Net's router operations. Among other units, Skanova Networks, responsible for the wholesale Skanova brand and fixed network operations in the other Nordic countries, the Baltics and the rest of Europe, will be transferred to Telia Networks. Telia Internet Services Business Area The Telia Internet Services business area is responsible for the Group's Internet services (access, applications and portals). Telia Internet Services offers Internet services to private individuals and enterprises in Sweden and the other Nordic countries. The following units are being transferred from the present Business Solutions and People Solutions business areas to Telia Internet Services: Telia e-bolaget AB, Telia Electronic Commerce AB, Telia Internet Partner AB, Makaranda AB, and cable and portal companies in Denmark. Telia Equity Business Area The Telia Equity business area is responsible for the Group's ownership interests in areas outside Telia's core operations. Companies and units in the current Enterprises business area, whose ownership will be broadened, will be part of Telia Equity during a transition period. The following units are being transferred from the Enterprises business area: Telia Handel to Telia Sweden; Telia Fastigheter (real estate) to Telia Networks and Corporate Financial Control, and Telia Försäkring (insurance) to Corporate Financial Control. The following units are being transferred to Telia Equity: Telia AB Satellit (from the Carrier and Networks business area), Scandinavia Online AB (from the People Solutions business area) and Wireless Car Sweden AB (from the Mobile business area). When the new organisation comes into force, Telia Nära's service and installation operations (including public telephony) will be transferred to Telia Equity. In the ongoing programme to streamline Telia's operations, service and installation activities have been defined as not belonging to Telia's core business. These activities are already included in the ongoing streamlining of Telia's overall service and installation operations, such as those in Neterna AB, Installation AB and Relacom AB. Telia Nära's service and installation operations will now be added to these. Telia Sweden Telia Sweden is forming a common sales and customer unit for Telia's private and enterprise customers in Sweden. The unit's operations are driven at the request of the Mobile, Networks, International Carrier and Internet Services business areas. The following units are being transferred to Telia Sweden from the present Business Solutions, People Solutions, Mobile and Enterprises business areas: Telia Handel AB (Enterprises), Telia Online AB (Business Solutions), Telia Promotor AB (Business Solutions), Telia Partner AB (Business Solutions), Telia Infonet AB (Business Solutions) and Telia Nära AB (People Solutions), including the latter's retail store operations but excluding its service and installation operations. Telia Research The new Telia Research unit consists primarily of Telia Research AB, parts of Telia Business Innovation, the Group's Business Intelligence and Market Analysis units, the Information Centre, Demotel and Teldok. The unit reports directly to the CEO. ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/02/19/20010219BIT00290/bit0001.doc http://www.bit.se/bitonline/2001/02/19/20010219BIT00290/bit0001.pdf