Annual Report 2007 - Company Description A Review of Our Operations: Integrated Enterprise Services

Finland's Metsäliitto Group is one of Europe's largest forest industry companies and it is supplying wood and paper products in 30 countries. In order to operate efficiently Metsäliitto needs reliable information and communications technology solutions. "We face the same kind of challenges as other industries and have to be able to constantly increase our efficiency. TeliaSonera offers a standardized portfolio of voice and data services that has increased the availability and reachability of our wood supply purchasing foremen and other staff," says Metsäliitto Chief Information Officer Jarmo Toikka. "TeliaSonera is powerful locally which means a commitment face to face. At the same time its regional Nordic and Baltic scope presented a financially competitive offer." As a Nordic base industry leader Metsäliitto is committed to sustainable forestry. System-to-system communications from TeliaSonera supply harvesters with area maps and help secure a responsible sourcing of wood while person-to-person services like telephone and Internet meetings save time and money spent on travelling and help reduce emissions of carbon dioxide.

Strategic discussions with customers about their objectives allow TeliaSonera to provide customers with what they need and help increase productivity, and along with it, cash flow. By always striving to contribute to the development of our clients' core business, TeliaSonera aims to become a meaningful market player in the provision of complete solutions for communication in the Nordic countries.

Companies are increasingly moving toward purchasing communications services and support solutions from external providers rather than investing in internal maintenance. Demand for integrated, hosted services is growing. TeliaSonera offers a wide range of services, from voice and data solutions and networked IT services to systems integration and converging services, as well as highly standardized solutions for small and medium-sizes companies.

As from January 1, 2008, TeliaSonera has renewed its business-to-business sales approach in order to improve service for customers and increase sales growth and efficiency. The business area Integrated Enterprise Services has been turned into a high powered sales force, Business Services, that will ensure one-stop shopping in a world where companies want to purchase their services from a single source. Meanwhile, Mobility Services and Broadband Services are responsible, on a profit-and-loss basis, for the basic offerings. Sales to business customers make up nearly 25 percent of Group revenue at TeliaSonera which has more than half a million business customers. Valued at close to SEK 130 billion, the Nordic market for business services harbors great potential for growth.

Together with Microsoft and Finnish IT-company Mepco, we launched in 2007 a new services model in Finland for business support. We expanded My Sonera, the most flexible and adaptable service on the Finnish market, to small and medium sized enterprises and expanded our offering EasyBox from Finland to Denmark, targeting companies with no IT-department but a sizeable need for better and well-integrated service packages.

TeliaSonera was first in the Nordics to launch a new generation virtual meeting service for business customers. TelePresence brings companies significant travel cuts, improved time management and reduced carbon dioxide emissions. New tools that generate benefits like lower travel spending and unlimited availability also are challenging the leadership of our customers who need to rethink the rules of how their companies work. As new services mean new requirements for leadership, it is important that we provide our customers with guidelines on how to handle issues like security and privacy.

Looking ahead, more enterprise market services will originate in the consumer services market. We are preparing for a new generation and are looking at how teenagers are using uniform communication, with video, voice, instant messaging and document sharing all in one. For business customers to adopt such services, they need a company that can deliver telecom carrier grade solutions ensuring security.

Executing our strategy to create growth by increasing our share of customers' investments in managed services, TeliaSonera strengthened its position in 2007 by acquiring know-how. Systems integrator Cygate, acquired in January 2007, in turn bought Didata Sverige, a Swedish subsidiary of global systems integrator Dimension Data, in April the same year. Finnish managed hosting specialist company Crescom was acquired in June, and to expand its distribution channels TeliaSonera increased its stake in the office solutions chain DataInfo in Finland to 100 percent in September.

The virtual meeting service Telepresence helps companies reduce the need to travel. The four persons facing the camera are not in the same room as the other attendants but present via a link.

TeliaSonera has 200 business customers in managed services in Sweden, which is four times more than in the middle of 2005. In 2007, TeliaSonera signed several multi-year agreements with leading companies in the Nordic region.

"We have the best days ahead of us in this industry. By creating an efficient, high-powered sales force, we have an excellent chance efficient, high-powered sales force, we have an excellent chance to increase market share in a region where business leaders understand the cash flow benefits of mobility and where white-collar productivity thinking is advanced."

Juho Lipsanen, President, Integrated Enterprise Services (from January 1, 2008, President of Business Services)

Introduction

TeliaSonera in Society

Financial Statements

Corporate Governance

Additional Information