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Tele2 AB - Company Report
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Company Reports are concise reports that provide a review of the company's activities, corporate strategy and recent developments.
Tele2 AB claims to be Europe’s leading alternative telecommunications operator, with around 29 million customers in 18 countries. The company offers fixed and mobile telephony, broadband, dial-up Internet, data networks, telephone cards, cable TV, and content services to both the residential and business markets. Through its services division Tele2 also offers a range of IT outsourcing, system integration, radio component, and procurement services, as well as integrated solutions for card processing. Tele2 has traditionally challenged incumbent operators in each of the countries that it has entered. However, the company has increasingly withdrawn from markets, either completely or partly, where regulatory conditions and the competitive environment have hampered further expansion, including those in France, Hungary, Portugal, Italy, and Spain in 2007, although most notably it has increased its presence in the Russian mobile market during this time. The Tele2 of the future is destined be a more product-focused company, with less geographical dispersion than today. Meanwhile, having used to operate as a traditional reseller, Tele2 is now increasing building its own infrastructure, thus offering a higher return and providing greater flexibility for its service offerings. Tele2 AB (originally known as NetCom Systems AB and subsequently NetCom AB) was formed in 1993 as a wholly-owned subsidiary of Kinnevik, a Swedish industrial and communications group. Having acquired and then merged with Société Européene de Communication SA (SEC) in July and October 2000, respectively, all the Tele2-branded operations were brought together under one management to create a platform for the development and bundling of fixed-line, mobile, fixed-wireless, data, Internet, and related services to both companies’ customers on a pan-European basis. The company was subsequently renamed Tele2 AB in February 2001. Tele2 has been listed on the Stockholm Stock Exchange since 1996. As of December 31, 2006, the company's largest shareholder was Investment AB Kinnevik with 28.2% of the company's share capital.
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