TeliaSonera’s Capex (capital expenditure) in the second quarter of 2013 decreased 21 percent to $537 million (SEK 3,539 million) from $676 million (SEK 4,457 million).
The Capex-to-sales ratio decreased to 14 percent from 17. The Capex-to-sales ratio, excluding license and spectrum fees, decreased to 13.2 percent from 16.2 percent.
Though TeliaSonera has invested less in telecom infrastructure, it noted that network quality and capacity are crucial to meet the exploding demand for data.
The telecom giant will further invest in 4G and mobile coverage, expand within fiber and selectively target acquisitions of existing fiber networks in our home markets.
The telecom operator’s H1 Capex decreased to $950 million (SEK 6,258 million) from SEK 7,632 million.
The Capex-to-sales ratio in H1 decreased to 12.6 percent from 14.7. The Capex-to-sales ratio, excluding license and spectrum fees, decreased to 11.9 percent from 14.2.
TeliaSonera on Wednesday said it will significantly expand its 4G network in Sweden, targeting 92 percent geographic coverage in the next two years, utilizing existing 2G/3G infrastructure to ensure a cost efficient roll-out.
Moreover, coverage is prioritized across the group and Estonian operation extended its 4G network significantly in the quarter and has currently the best national 4G coverage in Europe.
Its Capex in mobility decreased to SEK 1,004 million from SEK 1,201 million.
TeliaSonera’s Capex in broadband decreased to SEK 1,100 million from SEK 1,412 million.
TeliaSonera net sales decreased 3.9 percent to $3.8 billion in Q2. Its net income decreased 16.9 percent to $612 million.
As per its cost cutting measures, Per-Arne Blomquist, president and CEO of TeliaSonera, said the company served notice to around 1,050 of the targeted 1,800 employees. Savings are expected to be further visible in the second half of this year. It would reduce the cost base by SEK 2 billion net by the end of 2014.