Elmera Group ASA

Regulatory Filings • Apr 9, 2018

PRESSRELEASE Fjordkraft has 50,000 mobile phone customers

PRESSRELEASE Fjordkraft has 50,000 mobile phone customers

Fjordkraft Holding ASA ("Fjordkraft", OSE ticker "FKRAFT")

Fjordkraft has 50,000 mobile phone customers

In less than one year, electricity supplier and mobile phone operator Fjordkraft has reached 50,000 mobile phone customers. The company has thus seen rapid growth in the mobile telephony market.

On 25 April it will be one year since electricity supplier Fjordkraft also became a mobile telephony provider.

"We entered this market as an independent challenger to Telia and Telenor, with cheap mobile telephony and extra low prices for our electricity customers. This proves that our offer hit its mark. With two virtually omnipresent players, the mobile telephony market was ripe for competition," says CEO Rolf Barmen i Fjordkraft.

Short route from electricity to mobile telephony

Barmen said the following on the reasons for the rapid growth:

"We're in touch with a lot of people every day, and everyone in the household who buys electricity from us can take advantage of our cheap mobile offering. Our beneficial prices for mobile telephony are accessible to more than a million people.

"When we entered into the mobile market, our point of departure was what we already know. Fjordkraft is a well-known and highly visible brand and we have a large and skilled customer centre. Becoming a mobile telephony operator was thus just a short step away."

"In the mobile market there are two players with huge market resources, and the rate of change is high. It's an instructive place to compete in. For the organization it has been a shot in the arm, and the employees have welcomed the mobile operations with huge commitment," Barmen says.

Chess discontinued its operations in Bergen last summer, and Fjordkraft has recruited the customer service director, product manager and strategy developer from Chess, among others.

With the acquisition of TrønderEnergi Marked, Fjordkraft will have close to 600,000 delivery points in the private and business market. On 28 March the company reported that the acquisition has been approved by the Norwegian Competition Authority and the Norwegian Water Resources and Energy Directorate (NVE). With this acquisition, the company covers the electricity needs of more than 1.3 million people all over the country.

Market dominated by Telia and Telenor

The mobile market is dominated by Telenor and Telia, which with its brands has 92.3% of market share measured in the consumer market (Report Nkom 1st half of 2017). TalkMore, MyCall, OneCall, Tele2, and Phonero (corporate market) are all Telia or Telenor companies.

Telia bought Phonero in November and last week Telia chose to discontinue Chess as a brand.

The Ministry of Transport and Communications has recently maintained the decision of the National Communications Authority regarding continued regulation of Telenor. In addition, NKOM advises immediately to initiate new market analysis and assess the scope for future market regulation.

In March, Komplett Mobil announced that they had obtained 50,000 customers since their launch the summer of 2016.

Contakt:

CEO Rolf Barmen Mobil +47 900 80 950