OSLO, Norway-A surprise tax bill of 2.4 billion crowns (US$323 million) is the latest bit of bad news for Norway’s leading telecom operator and just part of the recent gloomy trend in Scandinavia.
The SFS, a tax agency for large-scale industry, disagreed with Telenor’s write-off of devalued Sonofon Holding shares sold to a company within the Telenor group. Telenor promises a long court battle if forced to cough up the extra money, and said it will have to borrow to cover most of the unexpected bill.
Semi-state-owned Telenor has been plagued with problems recently. Norway’s national telecom regulator PT formally ruled that the former monopoly must cut its prices on bandwidth sold on by at least 25 percent. Telenor’s mobile division is considering an appeal.
Telenor press spokesman Dag Melgaard cannot rule out thousands of job cuts as the company stretches to reach an expense cut of 10 to15 percent-about 4 billion crowns (US$538 million)-by 2004.
Telenor Mobil and Telenor Plus, the telephony, Internet and television service for home users, are divisions targeted for reductions. The company also faces possible legal action after failing to follow seniority regulations when cutting 239 jobs in Telenor Business Solutions.
Across the border in Sweden, the first negative effects of widespread third-generation (3G) delays took form in job cuts at Orange. The mobile operator is offering tempting severance packages to reduce staff without firings. Orange Sweden is also removing all consultants and temporary positions. Press chief Anette Gregow said closing the Swedish office is not an option.
