##### Table of Contents









SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





FORM 20-F




|  |                                                                                                         
|- | --------------------------------------------------------------------------------------------------------
|o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR
    (g) OF THE SECURITIES 
     EXCHANGE ACT OF 1934

OR




|  |                                                                                           
|- | ------------------------------------------------------------------------------------------
|þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE 
     SECURITIES EXCHANGE ACT OF 1934



OR




|  |                                                                                                   
|- | --------------------------------------------------------------------------------------------------
|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES 
     EXCHANGE ACT OF 1934

OR




|  |                                                                                                      
|- | -----------------------------------------------------------------------------------------------------
|o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
    SECURITIES 
     EXCHANGE ACT OF 1934





Telenor ASA


(Exact name of Registrant as specified in its charter)


Norway


(Jurisdiction of incorporation or organization)


Snarøyveien 30, N-1331 Fornebu, Norway


(Address of principal executive offices)





















þ o




o þ




þ o




o þ




þ


12b-2


o þ










---



##### 










TABLE OF CONTENTS


|                                                              |  |                                                                                  |   |      |     | 
|------------------------------------------------------------- |  | -------------------------------------------------------------------------------- | - | ---- | --- | 
|                                                              |  |                                                                                  |   | Page |    
|                                                              |  |                                                                                  |   |      |    
|PRESENTATION OF FINANCIAL AND OTHER
    INFORMATION           |  |                                                                                  | 3 |     
|CAUTIONARY STATEMENT REGARDING
    FORWARD-LOOKING STATEMENTS |  |                                                                                  | 3 |     
|PART I                                                       
|ITEM 1:                                                       |  | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT
    AND ADVISERS                        |   |      | 4   | 
|ITEM 2:                                                       |  | OFFER STATISTICS AND EXPECTED TIMETABLE                                          |   |      | 4   | 
|ITEM 3:                                                       |  | KEY INFORMATION                                                                  |   |      | 4   | 
|ITEM 4:                                                       |  | INFORMATION ON THE COMPANY                                                       |   |      | 15  | 
|ITEM 4A:                                                      |  | UNRESOLVED STAFF COMMENTS                                                        |   |      | 78  | 
|ITEM 5:                                                       |  | OPERATING AND FINANCIAL REVIEW AND
    PROSPECTS                                 |   |      | 78  | 
|ITEM 6:                                                       |  | DIRECTORS, SENIOR MANAGEMENT AND
    EMPLOYEES                                   |   |      | 131 | 
|ITEM 7:                                                       |  | MAJOR SHAREHOLDERS AND RELATED PARTY
    TRANSACTIONS                            |   |      | 144 | 
|ITEM 8:                                                       |  | FINANCIAL INFORMATION                                                            |   |      | 146 | 
|ITEM 9:                                                       |  | THE OFFER AND LISTING                                                            |   |      | 147 | 
|ITEM 10:                                                      |  | ADDITIONAL INFORMATION                                                           |   |      | 149 | 
|ITEM 11:                                                      |  | QUANTITATIVE AND QUALITATIVE DISCLOSURES
    ABOUT MARKET RISK                   |   |      | 159 | 
|ITEM 12:                                                      |  | DESCRIPTION OF SECURITIES OTHER THAN EQUITY
    SECURITIES                       |   |      | 161 | 
|PART II                                                      
|ITEM 13:                                                      |  | DEFAULTS, DIVIDEND ARREARAGES AND
    DELINQUENCIES                              |   |      | 161 | 
|ITEM 14:                                                      |  | MATERIAL MODIFICATIONS TO THE RIGHTS OF
    SECURITY HOLDERS AND USE OF PROCEEDS |   |      | 161 | 
|ITEM 15:                                                      |  | CONTROLS AND PROCEDURES                                                          |   |      | 161 | 
|ITEM 16A:                                                     |  | AUDIT COMMITTEE FINANCIAL EXPERT                                                 |   |      | 161 | 
|ITEM 16B:                                                     |  | CODE OF ETHICS                                                                   |   |      | 162 | 
|ITEM 16C:                                                     |  | PRINCIPAL ACCOUNTANT FEES AND SERVICES                                           |   |      | 162 | 
|ITEM 16D:                                                     |  | EXEMPTIONS FROM THE LISTING STANDARDS FOR
    AUDIT COMMITTEES                   |   |      | 163 | 
|ITEM 16E:                                                     |  | PURCHASES OF EQUITY SECURITIES BY ISSUER
    AND AFFILIATED PURCHASERS           |   |      | 163 | 
|PART III                                                     
|ITEM 17:                                                      |  | FINANCIAL STATEMENTS                                                             |   |      | 164 | 
|ITEM 18:                                                      |  | FINANCIAL STATEMENTS                                                             |   |      | 164 | 
|ITEM 19:                                                      |  | EXHIBITS                                                                         |   |      | 165 | 
|Exhibit 1                                                    
|Exhibit 4(c)                                                 
|Exhibit 8                                                    
|Exhibit 12                                                   
|Exhibit 13                                                   



2



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##### Table of Contents






PRESENTATION OF FINANCIAL AND OTHER INFORMATION











CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS








| |   |                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the level of demand for our services, particularly with regard
    to mobile communications services, fixed telephony, Internet,
    pay television services, and other newer products and services;
|
| |  | actions of our competitors;                                                                                                                                                                         
|
| |  | regulatory developments, including changes to our permitted
    tariffs, the terms of access to our network, the terms of
    interconnection and other issues; and                                 
|
| |  | the success of our international investments and expansion
    programs.                                                                                                                            



3



---






PART I







|        |                                                      
|------- | -----------------------------------------------------
|ITEM 1: | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS








|        |                                        
|------- | ---------------------------------------
|ITEM 2: | OFFER STATISTICS AND EXPECTED TIMETABLE








|        |                
|------- | ---------------
|ITEM 3: | KEY INFORMATION

SELECTED CONSOLIDATED FINANCIAL AND STATISTICAL DATA








|                                                                        |  |                                         |   |  |       |  |   |       |  |  |       |  |  |       |        |  |       |  |        |   |  |  |        |  
|----------------------------------------------------------------------- |  | --------------------------------------- | - |  | ----- |  | - | ----- |  |  | ----- |  |  | ----- | ------ |  | ----- |  | ------ | - |  |  | ------ | -
|                                                                        |  | Year ended December 31,                 |  
|                                                                        |  |                                         |  
|                                                                        |  | 2001                                    |   |  | 2002  |  |   | 2003  |  |  | 2004  |  |  | 2005  |        |  | 2005  | 
|                                                                        |  |                                         |   |  |       |  |   |       |  |  |       |  |  |       |        |  |       | 
|                                                                        |  | (NOK)                                   |   |  | (NOK) |  |   | (NOK) |  |  | (NOK) |  |  | (NOK) |        |  | (USD) | 
|                                                                        |  | (in millions, except per share amounts) |  
|Income Statement Data                                                   |  |                                         |   |  |       |  |   |       |  |  |       |  |  |       |        |  |       |  |        |   |  |  |        |  
|Revenues                                                                |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 60,591 |  |       |  | 68,927 |   |  |  | 10,220 |  
|Operating expenses(1)                                                   |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 53,224 |  |       |  | 57,222 |   |  |  | 8,484  |  
|Operating profit                                                        |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 7,367  |  |       |  | 11,705 |   |  |  | 1,736  |  
|Share of profit in associated Companies                                 |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 986    |  |       |  | 1,233  |   |  |  | 183    |  
|Profit from continuing operations                                       |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 7,413  |  |       |  | 9,138  |   |  |  | 1,355  |  
|Profit (loss) from discontinued operations(2)                           |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       |       |  |       |  | (4     | ) |  |  | (1     | )
|Profit from total operations                                            |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 7,413  |  |       |  | 9,134  |   |  |  | 1,354  |  
|Attributable to:                                                        |  |                                         |   |  |       |  |   |       |  |  |       |  |  |       |        |  |       |  |        |   |  |  |        |  
|Non-controlling interests (minority interests)                          |  |                                         |   |  |       |  |   |       |  |  |       |  |  |       | 1,320  |  |       |  | 1,488  |   |  |  | 220    |  
|Equity holders of Telenor ASA (net income)                              |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 6,093  |  |       |  | 7,646  |   |  |  | 1,134  |  
|Earnings per share from continuing operations  basic                   |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 3.49   |  |       |  | 4.47   |   |  |  | 0.66   |  
|Earnings per share from continuing operations  diluted                 |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 3.48   |  |       |  | 4.47   |   |  |  | 0.66   |  
|Earnings per share from total operations  basic                        |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 3.49   |  |       |  | 4.47   |   |  |  | 0.66   |  
|Earnings per share from total operations  diluted                      |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 3.48   |  |       |  | 4.47   |   |  |  | 0.66   |  
|Dividends per share(3)                                                  |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 1.50   |  |       |  | 2.00   |   |  |  | 0.30   |  
|Weighted average number of shares (in millions of
    shares)  primary |  |                                         |  |  |       |  |  |       |  |  |      |  |  |       | 1,748  |  |       |  | 1,711  |   |  |  |       |  

4



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##### Table of Contents



|                                                                                                                          |  |                                         |        |  |       |  |        |       |  |  |        |   |  |       |        |  |       |  |        |  |  |  |        | 
|------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------- | ------ |  | ----- |  | ------ | ----- |  |  | ------ | - |  | ----- | ------ |  | ----- |  | ------ |  |  |  | ------ | 
|                                                                                                                          |  | Year ended December 31,                 |       
|                                                                                                                          |  |                                         |       
|                                                                                                                          |  | 2001                                    |        |  | 2002  |  |        | 2003  |  |  | 2004   |   |  | 2005  |        |  | 2005  | 
|                                                                                                                          |  |                                         |        |  |       |  |        |       |  |  |        |   |  |       |        |  |       | 
|                                                                                                                          |  | (NOK)                                   |        |  | (NOK) |  |        | (NOK) |  |  | (NOK)  |   |  | (NOK) |        |  | (USD) | 
|                                                                                                                          |  | (in millions, except per share amounts) |       
|Weighted average number of shares (in millions of
    shares)  diluted                                                   |  |                                         |       |  |       |  |       |       |  |  |       |   |  |       | 1,749  |  |       |  | 1,712  |  |  |  |       | 
|U.S. GAAP                                                                                                                 |  |                                         |        |  |       |  |        |       |  |  |        |   |  |       |        |  |       |  |        |  |  |  |        | 
|Revenues                                                                                                                  |  |                                         | 40,581 |  |       |  | 47,879 |       |  |  | 52,826 |   |  |       | 67,801 |  |       |  | 70,352 |  |  |  | 10,431 | 
|Net income from continuing operations (excluding Telenor Media)                                                           |  |                                         | 1,889  |  |       |  |       |       |  |  |       |   |  |       |       |  |       |  |       |  |  |  |       | 
|Net income                                                                                                                |  |                                         | 7,004  |  |       |  | (3,658 | )     |  |  | 5,036  |   |  |       | 5,639  |  |       |  | 7,427  |  |  |  | 1,101  | 
|Net income per share from continuing operations (excluding
    Telenor Media)                                             |  |                                         | 1,066  |  |       |  |       |       |  |  |       |   |  |       |       |  |       |  |       |  |  |  |       | 
|Net income per share cumulative effect on prior years (prior to
    December 31, 2001) of change in accounting principles |  |                                         | 0,033  |  |       |  |       |       |  |  | (0.10  | ) |  |       |       |  |       |  |       |  |  |  |       | 
|Net income per share  primary (excluding treasury
    shares)                                                            |  |                                         | 3.95   |  |       |  | (2.06  | )     |  |  | 2.84   |   |  |       | 3.22   |  |       |  | 4.34   |  |  |  | 0.64   | 
|Net income per share  diluted (excluding treasury
    shares)                                                            |  |                                         | 3.95   |  |       |  | (2.06  | )     |  |  | 2.84   |   |  |       | 3.22   |  |       |  | 4.34   |  |  |  | 0.64   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Including depreciation, amortization and writedowns.                                                                                                                                                                                                                                                                                                                             
|   
|(2) | Dividends in respect of 2005 will be paid in June 2006.                                                                                                                                                                                                                                                                                                                          
|   
|(3) | Assets and liabilities held for sale in United Communication
    Industry pcl (UCOM), excluding our ownership interests in
    Total Access Communications (DTAC) and the holding of interest
    bearing liabilities, were reported as discontinued operations as
    of December 31, 2005. Please see note 1 to our consolidated
    financial statements for more information.

|                                                     |  |                         |        |       |  |       |        |       |  |       |         |       |  |  |         |  |  |  |         |  |  |  |        | 
|---------------------------------------------------- |  | ----------------------- | ------ | ----- |  | ----- | ------ | ----- |  | ----- | ------- | ----- |  |  | ------- |  |  |  | ------- |  |  |  | ------ | 
|                                                     |  | Year ended December 31,
|                                                     |  |                        
|                                                     |  | 2001                    |        | 2002  |  | 2003  |        | 2004  |  | 2005  |         | 2005 
|                                                     |  |                         |        |       |  |       |        |       |  |       |         |      
|                                                     |  | (NOK)                   |        | (NOK) |  | (NOK) |        | (NOK) |  | (NOK) |         | (USD)
|                                                     |  | (in millions)          
|Balance Sheet Data                                   |  |                         |        |       |  |       |        |       |  |       |         |       |  |  |         |  |  |  |         |  |  |  |        | 
|IFRS                                                 |  |                         |        |       |  |       |        |       |  |       |         |       |  |  |         |  |  |  |         |  |  |  |        | 
|Total non current assets                             |  |                         |       |       |  |       |       |       |  |       |        |       |  |  | 73,181  |  |  |  | 98,646  |  |  |  | 14,626 | 
|Total current assets                                 |  |                         |       |       |  |       |       |       |  |       |        |       |  |  | 18,215  |  |  |  | 25,749  |  |  |  | 3,818  | 
|Total assets                                         |  |                         |       |       |  |       |       |       |  |       |        |       |  |  | 91,396  |  |  |  | 124,395 |  |  |  | 18,444 | 
|Equity attributable to equity holders of Telenor ASA |  |                         |       |       |  |       |       |       |  |       |        |       |  |  | 40,122  |  |  |  | 46,399  |  |  |  | 6,879  | 
|Non-controlling interests (Minority interests)       |  |                         |       |       |  |       |       |       |  |       |        |       |  |  | 3,946   |  |  |  | 7,134   |  |  |  | 1,058  | 
|Total equity                                         |  |                         |       |       |  |       |       |       |  |       |        |       |  |  | 44,068  |  |  |  | 53,533  |  |  |  | 7,937  | 
|Total non-current liabilities                        |  |                         |       |       |  |       |       |       |  |       |        |       |  |  | 26,655  |  |  |  | 33,756  |  |  |  | 5,005  | 
|Total current liabilities                            |  |                         |       |       |  |       |       |       |  |       |        |       |  |  | 20,673  |  |  |  | 37,106  |  |  |  | 5,502  | 
|Total equity and liabilities                         |  |                         |       |       |  |       |       |       |  |       |        |       |  |  | 91,396  |  |  |  | 124,395 |  |  |  | 18,444 | 
|U.S. GAAP                                            |  |                         |        |       |  |       |        |       |  |       |         |       |  |  |         |  |  |  |         |  |  |  |        | 
|Total assets                                         |  |                         | 90,129 |       |  |       | 97,511 |       |  |       | 101,088 |       |  |  | 101,171 |  |  |  | 131,384 |  |  |  | 19,480 | 
|Non-current interest-bearing liabilities             |  |                         | 20,978 |       |  |       | 30,275 |       |  |       | 39,255  |       |  |  | 34,882  |  |  |  | 38,643  |  |  |  | 5,730  | 
|Shareholders equity                                 |  |                         | 42,944 |       |  |       | 35,799 |       |  |       | 42,535  |       |  |  | 42,430  |  |  |  | 47,457  |  |  |  | 7,037  | 

5



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##### Table of Contents



|                                         |  |                         |   |       |  |       |   |       |  |       |   |       |  |  |         |   |  |  |         |   |  |  |        |  
|---------------------------------------- |  | ----------------------- | - | ----- |  | ----- | - | ----- |  | ----- | - | ----- |  |  | ------- | - |  |  | ------- | - |  |  | ------ | -
|                                         |  | Year ended December 31,
|                                         |  |                        
|                                         |  | 2001                    |   | 2002  |  | 2003  |   | 2004  |  | 2005  |   | 2005 
|                                         |  |                         |   |       |  |       |   |       |  |       |   |      
|                                         |  | (NOK)                   |   | (NOK) |  | (NOK) |   | (NOK) |  | (NOK) |   | (USD)
|                                         |  | (in millions)          
|Cash Flow                                |  |                         |   |       |  |       |   |       |  |       |   |       |  |  |         |   |  |  |         |   |  |  |        |  
|IFRS                                     |  |                         |   |       |  |       |   |       |  |       |   |       |  |  |         |   |  |  |         |   |  |  |        |  
|Net cash flow from operating activities  |  |                         |  |       |  |       |  |       |  |       |  |       |  |  | 18,991  |   |  |  | 22,340  |   |  |  | 3,312  |  
|Net cash flow from investment activities |  |                         |  |       |  |       |  |       |  |       |  |       |  |  | (13,031 | ) |  |  | (19,998 | ) |  |  | (2,965 | )
|Net cash flow from financing activities  |  |                         |  |       |  |       |  |       |  |       |  |       |  |  | (8,255  | ) |  |  | (832    | ) |  |  | (123   | )

|                            |  |                         |   |       |  |       |   |       |  |       |   |       |  |  |        |  |  |  |        |  |  |  |       | 
|--------------------------- |  | ----------------------- | - | ----- |  | ----- | - | ----- |  | ----- | - | ----- |  |  | ------ |  |  |  | ------ |  |  |  | ----- | 
|                            |  | Year ended December 31,
|                            |  |                        
|                            |  | 2001                    |   | 2002  |  | 2003  |   | 2004  |  | 2005  |   | 2005 
|                            |  |                         |   |       |  |       |   |       |  |       |   |      
|                            |  | (NOK)                   |   | (NOK) |  | (NOK) |   | (NOK) |  | (NOK) |   | (USD)
|                            |  | (in millions)          
|Investments and EBITDA      |  |                         |   |       |  |       |   |       |  |       |   |       |  |  |        |  |  |  |        |  |  |  |       | 
|IFRS                        |  |                         |   |       |  |       |   |       |  |       |   |       |  |  |        |  |  |  |        |  |  |  |       | 
|Capital Expenditure(1)      |  |                         |  |       |  |       |  |       |  |       |  |       |  |  | 12,745 |  |  |  | 16,439 |  |  |  | 2,437 | 
|Investment in businesses(2) |  |                         |  |       |  |       |  |       |  |       |  |       |  |  | 5,809  |  |  |  | 8,858  |  |  |  | 1,313 | 
|EBITDA(3)                   |  |                         |  |       |  |       |  |       |  |       |  |       |  |  | 21,535 |  |  |  | 23,836 |  |  |  | 3,534 | 






|    |                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Capital expenditure (Capex) is investment in property, plant and
    equipment and intangible assets.                                                                                                                          
|   
|(2) | Investments in businesses are acquisitions of non-current shares
    and participations, including acquisitions of subsidiaries.                                                                                               
|   
|(3) | For the definition and discussion of EBITDA and the
    reconciliation of EBITDA to profit from total operations, you
    should read Item 5: Operating and Financial Review
    and Prospects  Operating profit and EBITDA.

|                                            |                                            |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  |  |        | 
|------------------------------------------- | ------------------------------------------ | ----------------------- |  | ---- | ----- | ---- |  | ---- | ----- | ---- |  |  | ----- |  |  |  | ----- |  |  |  | ------ | 
|                                            |                                            | Year ended December 31,
|                                            |                                            |                        
|                                            |                                            | 2001                    |  | 2002 |       | 2003 |  | 2004 |       | 2005
|                                            |                                            |                         |  |      |       |      |  |      |       |     
|Other Operating Data                        |                                            |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  | 
|Mobile telephony (digital) subscriptions in |                                            |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  | 
|                                            | Telenor Mobile (Norway),period end (000s): |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  |  |       
|                                            |                                            | Contract                |  |      | 1,210 |      |  |      | 1,215 |      |  |  | 1,228 |  |  |  | 1,395 |  |  |  | 1,509  | 
|                                            |                                            | Prepaid                 |  |      | 1,027 |      |  |      | 1,115 |      |  |  | 1,099 |  |  |  | 1,228 |  |  |  | 1,222  | 
|Mobile telephony (digital) subscriptions in |                                            |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  | 
|                                            | Sonofon (Denmark), period end (000s):      |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  |  |       
|                                            |                                            | Contract                |  |      |      |      |  |      |      |      |  |  |      |  |  |  | 813   |  |  |  | 859    | 
|                                            |                                            | Prepaid                 |  |      |      |      |  |      |      |      |  |  |      |  |  |  | 462   |  |  |  | 425    | 
|Mobile telephony (digital) subscriptions in |                                            |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  | 
|                                            | Telenor Mobile Swedenperiod end (000s)     |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  |  |       
|                                            |                                            | Contract                |  |      |      |      |  |      |      |      |  |  | 37    |  |  |  | 48    |  |  |  | 47     | 
|                                            |                                            | Prepaid                 |  |      |      |      |  |      |      |      |  |  | 44    |  |  |  | 57    |  |  |  | 48     | 
|Mobile telephony (digital) subscriptions in |                                            |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  | 
|                                            | Kyivstar (Ukraine), period end (000s):     |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  |  |       
|                                            |                                            | Contract                |  |      |      |      |  |      | 384   |      |  |  | 534   |  |  |  | 720   |  |  |  | 1,024  | 
|                                            |                                            | Prepaid                 |  |      |      |      |  |      | 1,472 |      |  |  | 2,503 |  |  |  | 5,532 |  |  |  | 12,901 | 
|Mobile telephony (digital) subscriptions in |                                            |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  | 
|                                            | Pannon GSM (Hungary), period end (000s):   |                         |  |      |       |      |  |      |       |      |  |  |       |  |  |  |       |  |  |  |       
|                                            |                                            | Contract                |  |      |      |      |  |      | 540   |      |  |  | 595   |  |  |  | 779   |  |  |  | 1,025  | 
|                                            |                                            | Prepaid                 |  |      |      |      |  |      | 1,910 |      |  |  | 2,023 |  |  |  | 1,991 |  |  |  | 1,904  | 

6



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|                                                                        |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        |  |       | 
|----------------------------------------------------------------------- | --------------------------------------------- | ------------------------------------------------- | ------ |  | ------ |  | ------ | ---- | ----- |  | ------ |  | ----- | ---- | ------ |  | ----- |  | ------ |  | ----- | 
|                                                                        |                                               | Year ended December 31,                           |       
|                                                                        |                                               |                                                   |       
|                                                                        |                                               | 2001                                              |        |  | 2002   |  |        | 2003 |       |  | 2004   |  |       | 2005 |       
|                                                                        |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |       
|Mobile telephony (digital) subscriptions in                             |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|                                                                        | DTAC (Thailand), period end (000s):           |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        |  |      
|                                                                        |                                               | Contract                                          |        |  |       |  |        |      |      |  |        |  |      |      |        |  |      |  |        |  | 1,465 | 
|                                                                        |                                               | Prepaid                                           |        |  |       |  |        |      |      |  |        |  |      |      |        |  |      |  |        |  | 7,212 | 
|Mobile telephony (digital) subscriptions in                             |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|                                                                        | DiGi.Com (Malaysia), period end (000s):       |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        |  |      
|                                                                        |                                               | Contract                                          |        |  | 137    |  |        |      | 97    |  |        |  | 106   |      |        |  | 175   |  |        |  | 354   | 
|                                                                        |                                               | Prepaid                                           |        |  | 902    |  |        |      | 1,519 |  |        |  | 2,101 |      |        |  | 3,067 |  |        |  | 4,441 | 
|Mobile telephony (digital) subscriptions in                             |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|                                                                        | GrameenPhone (Bangladesh), period end (000s): |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        |  |      
|                                                                        |                                               | Contract                                          |        |  | 185    |  |        |      | 206   |  |        |  | 242   |      |        |  | 296   |  |        |  | 383   | 
|                                                                        |                                               | Prepaid                                           |        |  | 279    |  |        |      | 563   |  |        |  | 899   |      |        |  | 2,092 |  |        |  | 5,159 | 
|Mobile telephony (digital) subscriptions in                             |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|                                                                        | Telenor Pakistan,period end (000s):           |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        |  |      
|                                                                        |                                               | Contract and prepaid                              |        |  |       |  |        |      |      |  |        |  |      |      |        |  |      |  |        |  | 1,868 | 
|Mobile telephony (digital) subscriptions in                             |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|                                                                        | ProMonte GSM (Montenegro)period end (000s):   |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        |  |      
|                                                                        |                                               | Contract                                          |        |  |       |  |        |      |      |  |        |  |      |      |        |  | 44    |  |        |  | 45    | 
|                                                                        |                                               | Prepaid                                           |        |  |       |  |        |      |      |  |        |  |      |      |        |  | 235   |  |        |  | 265   | 
|Fixed Norway                                                            |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|Fixed telephony access channels in Norway,                              |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|                                                                        | period end (000s):                            |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        |  |      
|                                                                        |                                               | Analog (PSTN)                                     |        |  | 1,545  |  |        |      | 1,467 |  |        |  | 1,308 |      |        |  | 1,182 |  |        |  | 1,089 | 
|                                                                        |                                               | Digital (ISDN)                                    |        |  | 1,766  |  |        |      | 1,828 |  |        |  | 1,682 |      |        |  | 1,449 |  |        |  | 1,227 | 
|Fixed telephony traffic in Norway (in millions of minutes):             |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|                                                                        |                                               | National calls, excluding Internet traffic        |        |  | 10,567 |  |        |      | 9,457 |  |        |  | 8,203 |      |        |  | 7,007 |  |        |  | 5,760 | 
|                                                                        |                                               | Internet traffic                                  |        |  | 6,067  |  |        |      | 5,293 |  |        |  | 4,619 |      |        |  | 3,577 |  |        |  | 2,081 | 
|                                                                        |                                               | Calls to mobile                                   |        |  | 1,412  |  |        |      | 1,499 |  |        |  | 1,442 |      |        |  | 1,362 |  |        |  | 1,332 | 
|                                                                        |                                               | International                                     |        |  | 383    |  |        |      | 378   |  |        |  | 340   |      |        |  | 308   |  |        |  | 277   | 
|                                                                        |                                               | Value-added services and directory calls, etc.    |        |  | 624    |  |        |      | 710   |  |        |  | 781   |      |        |  | 772   |  |        |  | 620   | 
|Internet, period end (000s):                                            |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|                                                                        |                                               | Internet subscriptions, residential market Norway |        |  | 394    |  |        |      | 427   |  |        |  | 457   |      |        |  | 527   |  |        |  | 579   | 
|                                                                        |                                               |  of which xDSL                                   |        |  | 23     |  |        |      | 90    |  |        |  | 163   |      |        |  | 286   |  |        |  | 414   | 
|                                                                        |                                               | xDSL business subscriptions, Norway               |        |  | 1      |  |        |      | 4     |  |        |  | 14    |      |        |  | 40    |  |        |  | 61    | 
|Broadcast                                                               |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|Pay television subscribers in the Nordic region,
    period end (000s): |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|                                                                        |                                               | Cable TV                                          |        |  | 561    |  |        |      | 571   |  |        |  | 604   |      |        |  | 624   |  |        |  | 681   | 
|                                                                        |                                               | Satellite master antenna TV- networks (SMATV)     |        |  | 1,193  |  |        |      | 1,133 |  |        |  | 1,098 |      |        |  | 1,212 |  |        |  | 1,177 | 
|                                                                        |                                               | Home satellite dish (DTH)(1)                      |        |  | 569    |  |        |      | 701   |  |        |  | 763   |      |        |  | 824   |  |        |  | 906   | 
|                                                                        |                                               | Digital Terrestrial Television (DTT)              |        |  |       |  |        |      |      |  |        |  |      |      |        |  | 12    |  |        |  | 33    | 
|Group                                                                   |                                               |                                                   |        |  |        |  |        |      |       |  |        |  |       |      |        |  |       |  |        | 
|Number of full-time equivalent employees                                |                                               |                                                   | 21,000 |  |        |  | 22,100 |      |       |  | 19,450 |  |       |      | 20,900 |  |       |  | 27,600 | 

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|    |                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------
|(1) | Includes all subscribers of Canal Digital, which we consolidated
    as a wholly-owned subsidiary starting on June 30, 2002.

DIVIDENDS AND DIVIDEND POLICY








| |   |                                                                                                   
| | - | --------------------------------------------------------------------------------------------------
| |  | annual profit according to the income statement approved for the
    preceding financial year, and
|
| |  | retained profit from previous years,                                                              

8-7 8-9




|        |  |                  |       |  |       |  |     | 
|------- |  | ---------------- | ----- |  | ----- |  | --- | 
|        |  | Total            |      
|        |  | (in millions)(1) |      
|        |  |                  |      
|Year    |  | (NOK)            |       |  | (USD) | 
|        |  |                  |       |  |       | 
|2001    |  |                  | 621   |  |       |  | 69  | 
|2002    |  |                  | 799   |  |       |  | 115 | 
|2003    |  |                  | 1,764 |  |       |  | 265 | 
|2004    |  |                  | 2,603 |  |       |  | 428 | 
|2005(1) |  |                  | 3,419 |  |       |  | 510 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | A dividend of NOK 2.00 per share for the fiscal year
    2005 was proposed by our board of directors due for acceptance
    by the corporate assembly and approval at the annual general
    meeting on May 23, 2006. The dividend, if approved, will be
    paid in June 2006 to the holders of record of Telenor shares on
    May 23, 2006. The total amounts for 2005 do not include
    dividends on own shares as of December 31, 2005.

20-30% 40-60%


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EXCHANGE RATES




|                        |  |         |        | 
|----------------------- |  | ------- | ------ | 
|Year ended December 31, |  | Average |       
|                        |  |         |       
|2001                    |  |         | 9.0380 | 
|2002                    |  |         | 7.9253 | 
|2003                    |  |         | 7.0627 | 
|2004                    |  |         | 6.7241 | 
|2005                    |  |         | 6.7444 | 



|              |  |     |        |  |      |  |        | 
|------------- |  | --- | ------ |  | ---- |  | ------ | 
|              |  | Low |        |  | High | 
|              |  |     |        |  |      | 
|October 2005  |  |     | 6.4307 |  |      |  | 6.6155 | 
|November 2005 |  |     | 6.4591 |  |      |  | 6.7393 | 
|December 2005 |  |     | 6.5944 |  |      |  | 6.8023 | 
|January 2006  |  |     | 6.5242 |  |      |  | 6.7483 | 
|February 2006 |  |     | 6.6416 |  |      |  | 6.8490 | 
|March 2006    |  |     | 6.5726 |  |      |  | 6.7340 | 
|April(1) 2006 |  |     | 6.4190 |  |      |  | 6.5142 | 






|    |                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------
|(1) | Low and high noon buying rates for the period starting
    April 1, 2006 and ending on April 5, 2006.





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RISK FACTORS


Risks Related to Our Business




| |                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We face increasing competition in the Norwegian
    telecommunications market which may result in further reductions
    in tariffs and loss of market share and could affect our future
    revenues and profitability.













| |                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we fail to successfully develop and market new mobile
    communications services, our ability to achieve further revenue
    growth in mobile communications services in the Norwegian market
    and the more mature international markets in which we operate
    may be reduced.



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| |                                                                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Lack of control, or failure to increase our ownership and
    thus gain control, over companies in which we have minority
    interests, or disagreements with our principal shareholders in
    our international operations, may impede our strategic
    objectives.















| |                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The value of our international operations and investments
    may be adversely affected by political, social, economic and
    legal developments in foreign countries.



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| |                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Increased exposure to currency exchange rate fluctuations
    may have an adverse effect on our reported earnings and the
    value of our international operations and investments.





| |                                                                                                                                                                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we or international mobile operators in which we have
    invested fail to obtain, or fail to enter into agreements to
    utilize, licenses for third generation mobile services, we may
    be unable to achieve further revenue growth in mobile
    communications or to benefit from certain cost reductions
    related to network improvements in our target markets.





| |   |                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | to achieve further revenue growth in mobile communications, if
    demand for improved or new services and products, which will
    work better on UMTS networks, proves to be strong; and/or
|
| |  | to benefit from the low incremental costs of increases in UMTS
    network capacity compared to increases in GSM network capacity.                                                           



| |                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------
| | Continuing rapid changes in technologies could increase
    competition or require us to make substantial additional
    investments.





| |                                                                                                   
| | --------------------------------------------------------------------------------------------------
| | In-orbit satellite failure may result in lost revenues in
    our satellite broadcasting business.





| |                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Actual or perceived health risks or other problems
    relating to mobile handsets or transmission masts could lead to
    decreased mobile communications usage.



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Risks Related to Regulatory Matters




| |                                                                                                                                 
| | --------------------------------------------------------------------------------------------------------------------------------
| | Increased regulation and changes in the regulatory
    environment could adversely affect our business operations in
    Norway.









| |                                                                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Existing and new regulatory requirements may impair our
    flexibility in setting tariff structures, require us to further
    reduce tariffs, provide advantages to our competitors or provide
    grounds for legal proceedings against us.









| |                                                                                                                                                                              
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The regulatory framework in Norway, which is based on EU
    telecommunications regulation, may impair our ability to compete
    effectively in our existing or new markets.



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| |                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Increased and unpredictable regulation of our
    international mobile operations and investments and the lack of
    institutional continuity and safeguards in certain of the
    emerging market countries in which we operate could adversely
    affect our competitive position, increase our costs of
    regulatory compliance and adversely affect our results and
    business prospects.









Risks Related to Our Ownership by the Kingdom of Norway




| |                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------
| | We could be influenced by the Kingdom of Norway whose
    interest may not always be aligned with the interests of our
    other shareholders.



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Risks Related to Our Ordinary Shares and the American
Depositary Shares




| |                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The price of our ordinary shares and ADSs may be volatile
    and fluctuate significantly due to many factors, including
    variations in our operating results and changes to the
    regulatory environment.





| |                                                                                                   
| | --------------------------------------------------------------------------------------------------
| | An ADS holder may not be able to exercise voting rights as
    readily as an ordinary shareholder.








|        |                           
|------- | --------------------------
|ITEM 4: | INFORMATION ON THE COMPANY

THE COMPANY












| |                
| | ---------------
| | Snarøyveien 30,
| | N-1331Fornebu  
| | Norway.        





OVERVIEW




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Mobile operations






| |   |                                                                                                                                                            
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a 100% ownership interest in Sonofon in Denmark, with
    approximately 1.284 million subscribers;                                                         
|
| |  | as of January 5, 2006, a 100% ownership interest in
    Vodafone Sweden, with approximately 1.7 million
    subscriptions, including Telenor Mobile Sweden.
|
| |  | a 56.5% ownership interest in Kyivstar in Ukraine, with
    approximately 13.925 million subscriptions;                                                    
|
| |  | a 100% ownership interest in Pannon GSM in Hungary, with
    approximately 2.929 million subscriptions;                                                    
|
| |  | a 69.3% economic stake in DTAC in Thailand, with approximately
    8.677 million subscriptions;                                                            
|
| |  | a 61.1% ownership interest in DiGi.Com in Malaysia, with
    approximately 4.795 million subscriptions;                                                    
|
| |  | a 62% ownership interest in GrameenPhone in Bangladesh, with
    approximately 5.542 million subscriptions                                                 
|
| |  | a 100% ownership interest in Telenor Pakistan in Pakistan, with
    approximately 1.868 million subscriptions.                                             
|
| |  | a 100% ownership interest in ProMonte GSM in Montenegro, with
    approximately 310,000 subscriptions.                                                     







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In October 2005, we entered into an agreement with Vodafone
    Group for the acquisition of its subsidiary Vodafone Sweden for
    EUR 1,035 million (NOK 8,170 million),
    including assumed debt. The acquisition was completed on
    January 5, 2006. In addition, we entered into a partner
    network agreement, allowing our customers to benefit from
    Vodafones global brand, products and services in Sweden.
|
| |  | We increased our economic stake in Total Access Communication
    (DTAC) in Thailand to 56.9% in October 2005. Following
    transactions based on mandatory tender offers required under
    regulations in Thailand and Singapore, our economic stake in
    DTAC as at December 31, 2005 was 69.3%.                                                                                                                         

Telenor Fixed




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Telenor Broadcast






Other Businesses




STRATEGY








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | To strengthen the performance of our local mobile operations by
    combining Group industrialization with local drive and
    responsiveness.                                                                                                                                                                                                                                                                               
|
| |  | To maintain and further develop our leading position within
    telecommunications in the Nordic region with a broad range of
    services in both the residential and business markets and high
    market shares.                                                                                                                                                                                                          
|
| |  | To realize synergies across the Nordic region, primarily with
    respect to our mobile operations through our established Nordic
    unit, which comprises and coordinates our mobile and fixed
    operations in the Nordic region. By streamlining our Nordic
    operations, we aim at strengthening customer focus as well as
    cost-efficiency.                                                                      
|
| |  | To ensure value creation in our mobile portfolio by maximizing
    cash flow in mature markets, securing continued subscriber
    growth in our international companies with a particular emphasis
    on subscriber growth in emerging markets and achieving control
    in order to benefit from synergies across our international and
    domestic operations and as a result, to increase our overall
    profitability.
|
| |  | To maintain and further develop a leading position within the
    Nordic TV distribution market.                                                                                                                                                                                                                                                                                                                             

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| |   |                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | To enhance the value of those companies which are not strategic
    for our main business areas and dispose of all or part of our
    interest in such companies.













| |                                                                    
| | -------------------------------------------------------------------
| | To strengthen our position as an international mobile
    operator.





| |                                                 
| | ------------------------------------------------
| | To strengthen our position in the Nordic region.





| |                                                                     
| | --------------------------------------------------------------------
| | To be the leading provider of communications services in
    Norway.





| |                                                                                                
| | -----------------------------------------------------------------------------------------------
| | To continue to be the leading distributor of TV services
    to consumers in the Nordic region.



Organisation




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##### Table of Contents









MOBILE OPERATIONS


Overview




| |            
| | -----------
| | Definitions



Subscriptions.


Churn.


Mobile Operators








| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In October 2005, we entered into an agreement with Vodafone
    Group for the acquisition of its subsidiary Vodafone Sweden for
    a consideration of EUR 1,035 million
    (NOK 8,170 million), including the assumption of debt.
    The acquisition was completed on January 5, 2006. In
    addition, we entered into a partner network agreement, allowing
    our customers to benefit from Vodafones global brand,
    products and services in Sweden.

19



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| |   |                                                                                                                                                                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | With effect from October 26, 2005, we increased our
    economic stake in Total Access Communication (DTAC) in
    Thailand to 56.9%. Following transactions based on mandatory
    tender offers in connection required under regulations in
    Thailand and Singapore, Telenors economic stake as of
    December 31, 2005 was 69.3%.





| |   |                                                                                                                                                                                                                                                                                                                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Our mobile commitments in Asia and Eastern/ Central Europe are
    becoming increasingly important to us and we have now
    established dedicated Executive Vice Presidents for these
    operations. In addition, we have strengthened the co-ordination
    of operational and human resources across all countries in which
    we have operations with two new Executive Vice Presidents in the
    Group Management.

.


|                     |  |              |  |                      |              |  |                 |  |      |            |  |  |        | 
|-------------------- |  | ------------ |  | -------------------- | ------------ |  | --------------- |  | ---- | ---------- |  |  | ------ | 
|                     |  |              |  | Date of Commencement |              |  | Date of Initial |  |      | Ownership  | 
|Company              |  | Market       |  | of Operations(1)     |              |  | Investment      |  |      | percentage | 
|                     |  |              |  |                      |              |  |                 |  |      |            | 
|Subsidiaries         |  |              |  |                      |              |  |                 |  |      |            |  |  |        | 
|Telenor Mobil        |  | Norway       |  |                      | May 1993     |  |                 |  |      |            |  |  | 100.00 | 
|Sonofon              |  | Denmark      |  |                      | July 1992    |  |                 |  | 2000 |            |  |  | 100.00 | 
|Telenor Mobile       |  |              |  |                      |              |  |                 |  |      |            |  |  |        | 
|Sweden               |  | Sweden       |  |                      | June 2001    |  |                 |  | 2001 |            |  |  | 100.00 | 
|Kyivstar GSM         |  | Ukraine      |  |                      | October 1997 |  |                 |  | 1998 |            |  |  | 56.51  | 
|Pannon GSM           |  | Hungary      |  |                      | March 1994   |  |                 |  | 1993 |            |  |  | 100.00 | 
|DTAC(2)              |  | Thailand     |  |                      | July 1992    |  |                 |  | 2000 |            |  |  | 69.30  | 
|DiGi.Com             |  | Malaysia     |  |                      | May 1995     |  |                 |  | 1999 |            |  |  | 61.00  | 
|GrameenPhone         |  | Bangladesh   |  |                      | March 1997   |  |                 |  | 1997 |            |  |  | 62.00  | 
|Telenor Pakistan     |  | Pakistan     |  |                      | March 2005   |  |                 |  | 2004 |            |  |  | 100.00 | 
|ProMonte GSM         |  | Montenegro   |  |                      | July 1996    |  |                 |  | 1996 |            |  |  | 100.00 | 
|Associated Companies |  |              |  |                      |              |  |                 |  |      |            |  |  |        | 
|VimpelCom            |  | Russia/Other |  |                      | June 1994    |  |                 |  | 1999 |            |  |  | 29.91  | 
|                     |  | countries    |  |                      |              |  |                 |  |      |            |  |  |        | 
|ONE                  |  | Austria      |  |                      | October 1998 |  |                 |  | 1997 |            |  |  | 17.45  | 






|    |                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Dates company commenced operations to provide commercial mobile
    services.                                                                                                 
|   
|(2) | As of December 31, 2005 Telenors combined direct and
    indirect interests in UCOM was 86.2% and in DTAC was 75%, which
    includes UCOMs 41.6% economic interest in DTAC.



go-to


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| |                           
| | --------------------------
| | Alliances and Associations







| |          
| | ---------
| | Customers



|                        |  |                 |  |                |      |  |                  |  |      |               |  |           |               |  |  |         |      |   |  |  |    | 
|----------------------- |  | --------------- |  | -------------- | ---- |  | ---------------- |  | ---- | ------------- |  | --------- | ------------- |  |  | ------- | ---- | - |  |  | -- | 
|                        |  |                 |  | Mobile         |      |  | Market Share     |  |      |               |  | Growth in |               |  | 
|                        |  |                 |  | Telephony      |      |  | Based on         |  |      | Total         |  |           | Subscriptions |  |  | Prepaid |     
|Company                 |  | Market          |  | Penetration(1) |      |  | Subscriptions(1) |  |      | Subscriptions |  |           | From 2003     |  |  | Share   |     
|                        |  |                 |  |                |      |  |                  |  |      |               |  |           |               |  |  |         |     
|                        |  |                 |  | (%)            |      |  | (%)              |  |      | (thousands)   |  |           | (%)           |  |  | (%)     |     
|Subsidiaries            |  |                 |  |                |      |  |                  |  |      |               |  |           |               |  |  |         |      |   |  |  |    | 
|Telenor Mobil           |  | Norway          |  |                | 107  |  |                  |  | 56   |               |  |           | 2,731         |  |  |         | 3    |   |  |  | 45 | 
|Sonofon                 |  | Denmark         |  |                | 89   |  |                  |  | 27   |               |  |           | 1,284         |  |  |         | 1    |   |  |  | 33 | 
|Telenor Mobile          |  |                 |  |                |      |  |                  |  |      |               |  |           |               |  |  |         |      |   |  |  |    | 
|Sweden(2)               |  | Sweden          |  |                | 110  |  |                  |  | 1    |               |  |           | 95            |  |  |         | (10  | ) |  |  | 51 | 
|Kyivstar GSM            |  | Ukraine         |  |                | 64   |  |                  |  | 46   |               |  |           | 13,925        |  |  |         | 123  |   |  |  | 93 | 
|Pannon GSM              |  | Hungary         |  |                | 87   |  |                  |  | 34   |               |  |           | 2,929         |  |  |         | 6    |   |  |  | 65 | 
|DTAC                    |  | Thailand        |  |                | 47   |  |                  |  | 28   |               |  |           | 8,677         |  |  |         | 11   |   |  |  | 83 | 
|DiGi.Com                |  | Malaysia        |  |                | 73   |  |                  |  | 25   |               |  |           | 4,795         |  |  |         | 48   |   |  |  | 93 | 
|GrameenPhone            |  | Bangladesh      |  |                | 6    |  |                  |  | 62   |               |  |           | 5,542         |  |  |         | 132  |   |  |  | 93 | 
|Telenor Pakistan        |  | Pakistan        |  |                | 13   |  |                  |  | 9    |               |  |           | 1,868         |  |  |         | n.a. |   |  |  | 98 | 
|ProMonte GSM            |  | Montenegro      |  |                | 88   |  |                  |  | 58   |               |  |           | 310           |  |  |         | 11   |   |  |  | 85 | 
|Associated companies(3) |  |                 |  |                |      |  |                  |  |      |               |  |           |               |  |  |         |      |   |  |  |    | 
|VimpelCom(4)            |  | Russia          |  |                | 87   |  |                  |  | 34   |               |  |           | 43,097        |  |  |         | 68   |   |  |  | 97 | 
|                        |  | Other countries |  |                | n.a. |  |                  |  | n.a. |               |  |           | 2,317         |  |  |         | n.a. |   |  |  | 98 | 
|ONE                     |  | Austria         |  |                | 103  |  |                  |  | 20   |               |  |           | 1,664         |  |  |         | 11   |   |  |  | 53 | 






|    |                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------
|(1) | Based on our and the local regulatory authorities
    estimates unless otherwise stated.                           
|   
|(2) | Figures do not include subscriptions for Vodafone Sweden, which
    we acquired on January 5, 2006.                 
|   
|(3) | All information for associated companies is based on figures
    published by the companies unless otherwise stated.
|   
|(4) | Based on 6 months churn for prepaid.                                                                                

21



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##### Table of Contents





| |                      
| | ---------------------
| | Licenses and Networks



|                      |                                 |            |              |               |          |          |      |         |            |  |      |          |      |                       |        |        |        | 
|--------------------- | ------------------------------- | ---------- | ------------ | ------------- | -------- | -------- | ---- | ------- | ---------- |  | ---- | -------- | ---- | --------------------- | ------ | ------ | ------ | 
|                      |                                 |            |              |               |          |          |      | Licence |            |  |     
|                      |                                 |            |              |               |          | Licence  |      |         | Expiration |  |      | Licence  |     
|Company               |                                 | Licences   |              | Network Type  |          | Granted  |      |         | Date       |  |      | Duration |     
|                      |                                 |            |              |               |          |          |      |         |            |  |      |          |     
|Telenor Mobil         |                                 | GSM 900    |              | GSM/GPRS/EDGE |          |          | 1992 |         |            |  | 2017 |          |      | Extended 2006 to 2017
|                      |                                 | GSM 900    |              |               |          |          | 2001 |         |            |  | 2013 |          |      |                       | 12 yrs |       
|                      |                                 | GSM 1800   |              |               |          |          | 1998 |         |            |  | 2010 |          |      |                       | 12 yrs |       
|                      |                                 | UMTS       |              | W-CDMA        |          |          | 2000 |         |            |  | 2012 |          |      |                       | 12 yrs |       
|Sonofon               |                                 | GSM 900    |              | GSM/GPRS      |          |          | 1997 |         |            |  | 2012 |          |      |                       | 15 yrs |       
|                      |                                 | GSM 1800   |              |               |          |          | 1997 |         |            |  | 2007 |          |      |                       | 10 yrs |       
|                      |                                 | GSM 1800   |              |               |          |          | 2000 |         |            |  | 2010 |          |      |                       | 10 yrs |       
|                      |                                 | UMTS       |              | W-CDMA        |          |          | 2005 |         |            |  | 2021 |          |      |                       | 16 yrs |       
|Kyivstar GSM(1)       |                                 | GSM 900    |              | GSM/GPRS      |          |          | 1997 |         |            |  | 2012 |          |      |                       | 15 yrs |       
|                      |                                 | GSM 1800   |              |               |          |          | 2001 |         |            |  | 2016 |          |      |                       | 15 yrs |       
|Pannon GSM            |                                 | GSM 900    |              | GSM/GPRS/EDGE |          |          | 1993 |         |            |  | 2008 |          |      |                       | 15 yrs |       
|                      |                                 | GSM 1800   |              |               |          |          | 1999 |         |            |  | 2014 |          |      |                       | 15 yrs |       
|                      |                                 | UMTS       |              | W-CDMA        |          |          | 2004 |         |            |  | 2019 |          |      |                       | 15 yrs |       
|DTAC(2)               |                                 | AMPS 800   |              | AMPS          |          |          | 1990 |         |            |  | 2018 |          |      | Extended 1996 to 2018
|                      |                                 | GSM 1800   |              | GSM/GPRS      |          |          | 1990 |         |            |  | 2018 |          |      |                       |        |       
|DiGi.Com(3)           |                                 | GSM 1800   |              | GSM/GPRS/EDGE |          |          | 2000 |         |            |  | 2015 |          |      |                       | 15 yrs |       
|                      |                                 | EGSM       |              |               |          |          |      |         |            |  |      |          |      |                       |        |       
|GrameenPhone          |                                 | GSM 900    |              | GSM           |          |          | 1996 |         |            |  | 2011 |          |      |                       | 15 yrs |       
|                      |                                 | GSM 1800   |              |               |          |          |      |         |            |  |      |          |      |                       |        |       
|Telenor Pakistan      |                                 | GSM 900    |              | GSM/GPRS/     |          |          | 2004 |         |            |  | 2019 |          |      |                       | 15 yrs |       
|                      |                                 | GSM 1800   |              |               |          |          | 2004 |         |            |  | 2019 |          |      |                       | 15 yrs |       
|                      |                                 | LDI        |              | LDI           |          |          | 2004 |         |            |  | 2024 |          |      |                       | 20 yrs |       
|ProMonte              |                                 | GSM 900    |              | GSM/GPRS      |          |          | 2002 |         |            |  | 2017 |          |      |                       | 15 yrs |       
|                      |                                 | GSM 1800   |              |               |          |          | 2002 |         |            |  | 2017 |          |      |                       | 15 yrs |       
|Associated companies: |                                 |            |              |               |          |          |      |         |            |  |      |          |      |                       |        |       
|VimpelCom:(4)         |                                 |            |              |               |          |          |      |         |            |  |      |          |      |                       |        |       
|                      | Moscow                          |            | GSM 900/1800 |               | GSM/GPRS |          |      | 1998    |            |  |      | 2008     |      |                       |        | 10 yrs |       
|                      | Central and Central Black Earth |            | GSM 900/1800 |               | GSM/GPRS |          |      | 2000    |            |  |      | 2008     |      |                       |        | 8 yrs  |       
|                      | North-Caucasus                  |            | GSM 900/1800 |               | GSM/GPRS |          |      | 2000    |            |  |      | 2008     |      |                       |        | 8 yrs  |       
|                      | North and North-West            |            | GSM 900/1800 |               | GSM/GPRS |          |      | 2002    |            |  |      | 2012     |      |                       |        | 10 yrs |       
|                      | Siberia                         |            | GSM 900/1800 |               | GSM/GPRS |          |      | 2000    |            |  |      | 2008     |      |                       |        | 8 yrs  |       
|                      | Ural                            |            | GSM 900/1800 |               | GSM/GPRS |          |      | 2002    |            |  |      | 2012     |      |                       |        | 10 yrs |       
|                      | Ural (whole Ural                |            |              |               |          |          |      |         |            |  |      |          |      |                       |        |        |       
|                      |                                 | Territory) |              | GSM 1800      |          | GSM/GPRS |      |         | 2002       |  |      |          | 2012 |                       |        |        | 10 yrs | 
|                      | Volga                           |            | GSM 900/1800 |               | GSM/GPRS |          |      | 2002    |            |  |      | 2008     |      |                       |        | 8 yrs  |       
|ONE                   |                                 | GSM 1800   |              | GSM/GPRS      |          |          | 1997 |         |            |  | 2017 |          |      |                       | 20 yrs |       
|                      |                                 | UMTS       |              | W-CDMA        |          |          | 2000 |         |            |  | 2020 |          |      |                       | 20 yrs |       






|    |                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------
|(1) | In addition to the operating licenses, Kyivstar holds a number
    of regional frequency licenses.      
|   
|(2) | Rather than a license, DTAC has the right to operate a mobile
    network pursuant to a concession.     
|   
|(3) | Rather than a license, DiGi.Com holds the right to operate a
    mobile network (Spectrum allocation).
|   
|(4) | In addition, VimpelCom also holds several GSM/ AMPS/ D-AMPS
    licenses in other regions and countries.

22



---



##### Table of Contents





| |    
| | ---
| | GSM





| |     
| | ----
| | UMTS





| |             
| | ------------
| | Wireless LAN

e-mail




| |                    
| | -------------------
| | Network Development

state-of around-the






23



---



##### Table of Contents





| |                      
| | ---------------------
| | Products and services





| |               
| | --------------
| | Voice services









| |              
| | -------------
| | Data services

SMS and MMS.


Content services.


Internet/intranet access.


mCommerce. top-up


24



---



##### Table of Contents





| |                
| | ---------------
| | Interconnection





| |                      
| | ---------------------
| | International Roaming







| |                   
| | ------------------
| | Wholesale services



Marketing






Telenor Mobil  Norway






25



---



##### Table of Contents











| |                      
| | ---------------------
| | Products and services



e-mail






| |                           
| | --------------------------
| | Marketing and distribution







26



---



##### Table of Contents







| |          
| | ---------
| | Customers



| |       
| | ------
| | Retail







|                                                  |          |                        |     |       |       |  |     |       |       |  |     |       |       | 
|------------------------------------------------- | -------- | ---------------------- | --- | ----- | ----- |  | --- | ----- | ----- |  | --- | ----- | ----- | 
|                                                  |          | Year ended December 31 |    
|                                                  |          |                        |    
|                                                  |          | 2003                   |     |       | 2004  |  |     | 2005  |      
|                                                  |          |                        |     |       |       |  |     |       |      
|Mobile subscriptions (period end, 000s):          |          |                        |     |       |       |  |     |       |       |  |     |      
|Digital                                           |          |                        |     |       |       |  |     |       |       |  |     |      
|                                                  | Contract |                        |     | 1,228 |       |  |     | 1,395 |       |  |     | 1,509 |      
|                                                  | Prepaid  |                        |     | 1,099 |       |  |     | 1,228 |       |  |     | 1,232 |      
|Analog                                            |          |                        | 37  |       |       |  | 22  |       |       |  |    |      
|                                                  |          |                        |     |       |       |  |     |       |      
|                                                  |          | Total                  |     |       | 2,364 |  |     |       | 2,645 |  |     |       | 2,731 | 
|                                                  |          |                        |     |       |       |  |     |       |      
|Subscriptions through service providers and MVNOs |          |                        | 487 |       |       |  | 540 |       |       |  | 660 |      
|Mobile Telephony Penetration in Norway            |          |                        | 90  | %     |       |  | 102 | %     |       |  | 107 | %    
|Churn rates for contract subscriptions            |          |                        | 21  | %     |       |  | 15  | %     |       |  | 21  | %    





| |          
| | ---------
| | Wholesale







27



---



##### Table of Contents









| |        
| | -------
| | Traffic



|                                                                                     |  |      |       |  |      |  |       |      |  |  |       | 
|------------------------------------------------------------------------------------ |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                                                                     |  | 2003 |       |  | 2004 |  |       | 2005 | 
|                                                                                     |  |      |       |  |      |  |       |      | 
|Traffic:                                                                             |  |      |       |  |      |  |       |      |  |  |       | 
|Digital                                                                              |  |      |       |  |      |  |       |      |  |  |       | 
|Total outgoing traffic (in million of minutes)                                       |  |      | 3,048 |  |      |  | 3,438 |      |  |  | 3,908 | 
|Total incoming traffic (in million of minutes)                                       |  |      | 1,832 |  |      |  | 1,939 |      |  |  | 2,017 | 
|Average monthly incoming and outgoing traffic (minutes per
    digital subscription) |  |      | 176   |  |      |  | 184   |      |  |  | 184   | 
|Number of outgoing SMS, MMS and content messages (in millions)                       |  |      | 2,409 |  |      |  | 2,785 |      |  |  | 3,459 | 
|Analog                                                                               |  |      |       |  |      |  |       |      |  |  |       | 
|Total outgoing traffic (in million of minutes)                                       |  |      | 36    |  |      |  | 23    |      |  |  |      | 
|Total incoming traffic (in million of minutes)                                       |  |      | 14    |  |      |  | 9     |      |  |  |      | 





| |            
| | -----------
| | Competition









| |                   
| | ------------------
| | Regulatory matters



set-up


28



---



##### Table of Contents







Sonofon  Denmark








| |                      
| | ---------------------
| | Products and services









| |                           
| | --------------------------
| | Marketing and distribution







29



---



##### Table of Contents





| |          
| | ---------
| | Customers



|                                         |                                         |                         |      |     |       |  |      |      |       |  |      |     |       | 
|---------------------------------------- | --------------------------------------- | ----------------------- | ---- | --- | ----- |  | ---- | ---- | ----- |  | ---- | --- | ----- | 
|                                         |                                         | Year ended December 31  |     
|                                         |                                         |                         |     
|                                         |                                         | 2003                    |      |     | 2004  |  |      | 2005 |      
|                                         |                                         |                         |      |     |       |  |      |      |      
|Mobile subscriptions (period end, 000s): |                                         |                         |      |     |       |  |      |      |       |  |      |    
|Digital                                  |                                         |                         |      |     |       |  |      |      |       |  |      |    
|                                         | Contract(1)                             |                         |      | 772 |       |  |      | 813  |       |  |      | 859 |      
|                                         | Prepaid(2)                              |                         |      | 238 |       |  |      | 462  |       |  |      | 425 |      
|                                         |                                         |                         |      |     |       |  |      |      |      
|                                         |                                         | Total own subscriptions |      |     | 1,010 |  |      |      | 1,275 |  |      |     | 1,284 | 
|                                         |                                         |                         |      |     |       |  |      |      |      
|                                         | Subscriptions through service providers |                         |      | 407 |       |  |      | 185  |       |  |      | 216 |      
|                                         | Fixed-line customers(3)                 |                         |      | 448 |       |  |      | 461  |       |  |      | 127 |      
|Mobile Telephony Penetration in Denmark  |                                         |                         | 82   | %   |       |  | 88   | %    |       |  | 89   | %  
|Churn rates for contract subscriptions   |                                         |                         | 38.6 | %   |       |  | 33.1 | %    |       |  | 24.4 | %  






|    |                                                                                                                                                                                                                                            
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Contract subscriptions for the year end 2004 have been adjusted.
    SIM-cards used for telemetric applications are now excluded from
    the figures.                                                                                     
|   
|(2) | The number of prepaid subscribers for the years ending 2004 and
    2005 includes subscribers of CBB Mobil, a service provider which
    Sonofon acquired during 2004. CBB Mobil has continued to operate
    under its own name and brand.
|   
|(3) | Figures from 2003 and 2004 are not comparable with 2005 figures
    as the method of calculation was adjusted in 2005 from the
    number of phone numbers published to the number of fixed lines
    actually sold.                       



| |        
| | -------
| | Traffic



|                                                                                       |  |      |       |  |      |  |       |      |  |  |       | 
|-------------------------------------------------------------------------------------- |  | ---- | ----- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                                                                       |  | 2003 |       |  | 2004 |  |       | 2005 | 
|                                                                                       |  |      |       |  |      |  |       |      | 
|GSM                                                                                    |  |      |       |  |      |  |       |      |  |  |       | 
|Traffic(1):                                                                            |  |      |       |  |      |  |       |      |  |  |       | 
|Total outgoing traffic (in millions of minutes)                                        |  |      | 1,027 |  |      |  | 1,192 |      |  |  | 1,679 | 
|Total incoming traffic (in millions of minutes)                                        |  |      | 701   |  |      |  | 826   |      |  |  | 1,013 | 
|Average monthly incoming and outgoing traffic 
    (minutes per digital subscription) |  |      | 145   |  |      |  | 148   |      |  |  | 179   | 
|Number of outgoing SMS and content messages (in millions)                              |  |      | 809   |  |      |  | 1,273 |      |  |  | 1,755 | 






|    |                                                                                  
|--- | ---------------------------------------------------------------------------------
|(1) | Data for 2004 and 2005 includes traffic generated by CBB Mobil
    subscriptions.





| |            
| | -----------
| | Competition



30



---



##### Table of Contents









| |                   
| | ------------------
| | Regulatory matters



set-up






Telenor Mobile Sweden  Sweden










31



---



##### Table of Contents





| |                      
| | ---------------------
| | Products and Services





| |          
| | ---------
| | Customers





| |        
| | -------
| | Traffic



|                                                                                       |  |      |      |  |      |  |      |      |  |  |      | 
|-------------------------------------------------------------------------------------- |  | ---- | ---- |  | ---- |  | ---- | ---- |  |  | ---- | 
|                                                                                       |  | 2003 |      |  | 2004 |  |      | 2005 | 
|                                                                                       |  |      |      |  |      |  |      |      | 
|GSM                                                                                    |  |      |      |  |      |  |      |      |  |  |      | 
|Traffic:                                                                               |  |      |      |  |      |  |      |      |  |  |      | 
|Total outgoing traffic (in millions of minutes)                                        |  |      | 28.2 |  |      |  | 56.8 |      |  |  | 75.4 | 
|Total incoming traffic (in millions of minutes)                                        |  |      | 11.7 |  |      |  | 60.3 |      |  |  | 93.5 | 
|Average monthly incoming and outgoing traffic 
    (minutes per digital subscription) |  |      | 49   |  |      |  | 111  |      |  |  | 132  | 





| |            
| | -----------
| | Competition



UMTS-nät re-use




| |                   
| | ------------------
| | Regulatory matters



Pannon GSM  Hungary




32



---



##### Table of Contents







| |                      
| | ---------------------
| | Products and services

Non-voice




| |                           
| | --------------------------
| | Marketing and distribution

up-to








| |          
| | ---------
| | Customers



|                                         |          |                        |    |       |       |      |    |       |       |  |    |       |       | 
|---------------------------------------- | -------- | ---------------------- | -- | ----- | ----- | ---- | -- | ----- | ----- |  | -- | ----- | ----- | 
|                                         |          | Year ended December 31
|                                         |          |                       
|                                         |          | 2003                   |    | 2004  |       | 2005
|                                         |          |                        |    |       |       |     
|Mobile subscriptions (period end, 000s): |          |                        |    |       |       |      |    |       |       |  |    |      
|                                         | Contract |                        |    | 595   |       |      |    | 779   |       |  |    | 1,025 |      
|                                         | Prepaid  |                        |    | 2,023 |       |      |    | 1,991 |       |  |    | 1,904 |      
|                                         |          |                        |    |       |       |      |    |       |       |  |    |      
|                                         |          | Total                  |    |       | 2,618 |      |    |       | 2,770 |  |    |       | 2,929 | 
|                                         |          |                        |    |       |       |      |    |       |       |  |    |      
|Mobile Telephony Penetration in Hungary  |          |                        | 73 | %     |       |      | 80 | %     |       |  | 87 | %    





| |            
| | -----------
| | Competition

T-Mobile T-Mobile,


33



---



##### Table of Contents





| |                   
| | ------------------
| | Regulatory matters

T-Mobile


T-Mobile






| |                  
| | -----------------
| | USF contributions









| |                                   
| | ----------------------------------
| | GVH investigation- The cartel case



34



---



##### Table of Contents





DiGi.Com  Malaysia






| |                      
| | ---------------------
| | Products and Services





| |                           
| | --------------------------
| | Marketing and Distribution





| |          
| | ---------
| | Customers



|                                         |          |                        |    |       |       |      |    |       |       |  |    |       |       | 
|---------------------------------------- | -------- | ---------------------- | -- | ----- | ----- | ---- | -- | ----- | ----- |  | -- | ----- | ----- | 
|                                         |          | Year ended December 31
|                                         |          |                       
|                                         |          | 2003                   |    | 2004  |       | 2005
|                                         |          |                        |    |       |       |     
|Mobile subscriptions (period end, 000s): |          |                        |    |       |       |      |    |       |       |  |    |      
|                                         | Contract |                        |    | 104   |       |      |    | 172   |       |  |    | 354   |      
|                                         | Prepaid  |                        |    | 2,101 |       |      |    | 3,067 |       |  |    | 4,441 |      
|                                         |          |                        |    |       |       |      |    |       |       |  |    |      
|                                         |          | Total                  |    |       | 2,205 |      |    |       | 3,239 |  |    |       | 4,795 | 
|                                         |          |                        |    |       |       |      |    |       |       |  |    |      
|Mobile Telephony Penetration in Malaysia |          |                        | 44 | %     |       |      | 57 | %     |       |  | 73 | %    





| |            
| | -----------
| | Competition



35



---



##### Table of Contents









| |                  
| | -----------------
| | Regulatory issues









Total Access Communication PCL (DTAC)  Thailand






| |                      
| | ---------------------
| | Products and Services





| |                           
| | --------------------------
| | Marketing and Distribution



36



---



##### Table of Contents





| |          
| | ---------
| | Customers



|                                         |          |                        |    |       |       |  |    |       |       |  |    |       |       | 
|---------------------------------------- | -------- | ---------------------- | -- | ----- | ----- |  | -- | ----- | ----- |  | -- | ----- | ----- | 
|                                         |          | Year ended December 31 |   
|                                         |          |                        |   
|                                         |          | 2003                   |    |       | 2004  |  |    | 2005  |      
|                                         |          |                        |    |       |       |  |    |       |      
|Mobile subscriptions (period end, 000s): |          |                        |    |       |       |  |    |       |       |  |    |      
|                                         | Contract |                        |    | 1,167 |       |  |    | 1,277 |       |  |    | 1,465 |      
|                                         | Prepaid  |                        |    | 5,383 |       |  |    | 6,509 |       |  |    | 7,212 |      
|                                         |          |                        |    |       |       |  |    |       |      
|                                         |          | Total                  |    |       | 6,550 |  |    |       | 7,786 |  |    |       | 8,677 | 
|                                         |          |                        |    |       |       |  |    |       |      
|Mobile Telephony Penetration in Thailand |          |                        | 35 | %     |       |  | 43 | %     |       |  | 47 | %    





| |            
| | -----------
| | Competition







| |                   
| | ------------------
| | Regulatory matters











37



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Kyivstar  Ukraine










| |                      
| | ---------------------
| | Products and services





| |                           
| | --------------------------
| | Marketing and distribution

co-branding






| |          
| | ---------
| | Customers

Kyivstar


|                                         |          |                        |    |       |       |      |    |       |       |  |    |        |        | 
|---------------------------------------- | -------- | ---------------------- | -- | ----- | ----- | ---- | -- | ----- | ----- |  | -- | ------ | ------ | 
|                                         |          | Year ended December 31
|                                         |          |                       
|                                         |          | 2003                   |    | 2004  |       | 2005
|                                         |          |                        |    |       |       |     
|Mobile subscriptions (period end, 000s): |          |                        |    |       |       |      |    |       |       |  |    |       
|                                         | Contract |                        |    | 534   |       |      |    | 720   |       |  |    | 1,024  |       
|                                         | Prepaid  |                        |    | 2,503 |       |      |    | 5,532 |       |  |    | 12,901 |       
|                                         |          |                        |    |       |       |      |    |       |       |  |    |       
|                                         |          | Total                  |    |       | 3,037 |      |    |       | 6,252 |  |    |        | 13,925 | 
|                                         |          |                        |    |       |       |      |    |       |       |  |    |       
|Mobile Telephony Penetration in Ukraine  |          |                        | 14 | %     |       |      | 29 | %     |       |  | 64 | %     



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| |        
| | -------
| | Traffic





| |            
| | -----------
| | Competition











| |                   
| | ------------------
| | Regulatory matters









set-up




39



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| |                  
| | -----------------
| | Legal proceedings





GrameenPhone  Bangladesh








| |                     
| | --------------------
| | Product and services

up-to-date




| |                           
| | --------------------------
| | Marketing and distribution



40



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| |          
| | ---------
| | Customers



|                                           |          |                        |     |     |       |  |     |       |       |  |     |       |       | 
|------------------------------------------ | -------- | ---------------------- | --- | --- | ----- |  | --- | ----- | ----- |  | --- | ----- | ----- | 
|                                           |          | Year ended December 31 |    
|                                           |          |                        |    
|                                           |          | 2003                   |     |     | 2004  |  |     | 2005  |      
|                                           |          |                        |     |     |       |  |     |       |      
|Mobile subscriptions (period end, 000s):   |          |                        |     |     |       |  |     |       |       |  |     |      
|                                           | Contract |                        |     | 242 |       |  |     | 296   |       |  |     | 383   |      
|                                           | Prepaid  |                        |     | 899 |       |  |     | 2,092 |       |  |     | 5,159 |      
|                                           |          |                        |     |     |       |  |     |       |      
|                                           |          | Total                  |     |     | 1,141 |  |     |       | 2,388 |  |     |       | 5,542 | 
|                                           |          |                        |     |     |       |  |     |       |      
|Mobile Telephony Penetration in Bangladesh |          |                        | 1.3 | %   |       |  | 2.8 | %     |       |  | 6.2 | %    





| |            
| | -----------
| | Competition





| |                   
| | ------------------
| | Regulatory matters







41



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##### Table of Contents





Telenor Pakistan  Pakistan




| |         
| | --------
| | Overview







| |                     
| | --------------------
| | Product and services





| |                           
| | --------------------------
| | Marketing and distribution





| |          
| | ---------
| | Customers



|                                         |          |                   |    |       |       | 
|---------------------------------------- | -------- | ----------------- | -- | ----- | ----- | 
|                                         |          | Year ended       
|                                         |          | December 31, 2005
|                                         |          |                  
|Mobile subscriptions (period end, 000s): |          |                   |    |      
|                                         | Contract |                   |    | 32    |      
|                                         | Prepaid  |                   |    | 1,836 |      
|                                         |          |                   |    |      
|                                         |          | Total             |    |       | 1,868 | 
|                                         |          |                   |    |      
|Mobile Telephony Penetration in Pakistan |          |                   | 13 | %    



42



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##### Table of Contents





| |            
| | -----------
| | Competition





| |                   
| | ------------------
| | Regulatory matters











43



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##### Table of Contents



ProMonte GSM  Montenegro






| |                      
| | ---------------------
| | Products and services





| |                           
| | --------------------------
| | Marketing and distribution

shop-in




| |          
| | ---------
| | Customers



|                                           |          |                        |    |      |     |      |    |     |     |  |    |     |     | 
|------------------------------------------ | -------- | ---------------------- | -- | ---- | --- | ---- | -- | --- | --- |  | -- | --- | --- | 
|                                           |          | Year ended December 31
|                                           |          |                       
|                                           |          | 2003                   |    | 2004 |     | 2005
|                                           |          |                        |    |      |     |     
|Mobile subscriptions (period end, 000s):   |          |                        |    |      |     |      |    |     |     |  |    |    
|                                           | Contract |                        |    | 46   |     |      |    | 44  |     |  |    | 45  |    
|                                           | Prepaid  |                        |    | 207  |     |      |    | 235 |     |  |    | 265 |    
|                                           |          |                        |    |      |     |      |    |     |     |  |    |    
|                                           |          | Total                  |    |      | 253 |      |    |     | 279 |  |    |     | 310 | 
|                                           |          |                        |    |      |     |      |    |     |     |  |    |    
|Mobile Telephony Penetration in Montenegro |          |                        | 69 | %    |     |      | 78 | %   |     |  | 88 | %  





| |            
| | -----------
| | Competition



T-Mobile




VimpelCom  Russia and other CIS countries




44



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|                                           |  |                    |        |  |                  |  |        | 
|------------------------------------------ |  | ------------------ | ------ |  | ---------------- |  | ------ | 
|                                           |  | Economic ownership |        |  | Voting ownership | 
|                                           |  |                    |        |  |                  | 
|Alfa Group (through Eco Telecom Limited)   |  |                    | 24.50% |  |                  |  | 32.91% | 
|Telenor (through Telenor East Invest AS) |  |                    | 29.91% |  |                  |  | 26.58% | 
|Free float                                 |  |                    | 44.10% |  |                  |  | 39.20% | 
|Treasury stock                             |  |                    | 0.50%  |  |                  |  | 0.50%  | 
|Other                                      |  |                    | 0.99%  |  |                  |  | 0.81%  | 







| |                         
| | ------------------------
| | Mergers and acquisitions





| |                 
| | ----------------
| | Licensing issues





| |                      
| | ---------------------
| | Products and services







45



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| |          
| | ---------
| | Customers



|                                            |                 |                        |    |        |        |  |    |        |        |  |    |        |        | 
|------------------------------------------- | --------------- | ---------------------- | -- | ------ | ------ |  | -- | ------ | ------ |  | -- | ------ | ------ | 
|                                            |                 | Year ended December 31 |   
|                                            |                 |                        |   
|                                            |                 | 2003                   |    |        | 2004   |  |    | 2005   |       
|                                            |                 |                        |    |        |        |  |    |        |       
|Mobile subscriptions (period end, 000s):(1) |                 |                        |    |        |        |  |    |        |        |  |    |       
|                                            | Russia          |                        |    | 11,437 |        |  |    | 25,725 |        |  |    | 43,097 |       
|                                            | Other Countries |                        |    |       |        |  |    | 859    |        |  |    | 2,317  |       
|                                            |                 | Total                  |    |        | 11,437 |  |    |        | 26,583 |  |    |        | 45,414 | 
|                                            |                 |                        |    |        |        |  |    |        |       
|Mobile Telephony Penetration in Russia      |                 |                        | 25 | %      |        |  | 51 | %      |        |  | 87 | %     






|    |                                                                                                                                                               
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Figures are based on statistics published by Advanced
    Communications & Media. The number of prepaid
    subscribers are based on a 6 month churn period.



| |            
| | -----------
| | Competition







| |                   
| | ------------------
| | Regulatory matters

Regulatory Environment




Legal proceedings






46



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##### Table of Contents











47



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##### Table of Contents



TELENOR FIXED






| |   |                                                                                                                                
| | - | -------------------------------------------------------------------------------------------------------------------------------
| |  | analog (PSTN), digital fixed line telephony services
    (ISDN) and broadband voice services over Internet Protocol
    (VoIP);
|
| |  | internet access via PSTN/ ISDN and digital subscriber lines
    (xDSL);                                                        
|
| |  | value-added services; and                                                                                                      
|
| |  | leased lines.                                                                                                                  











Overview and Background




| |             
| | ------------
| | Fixed Norway



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Residential market. We provide voice services on a
    traditional public switched telephone network (PSTN), an
    integrated services digital network (ISDN) and via
    broadband Voice over Internet Protocol (VoIP). We also provide
    narrowband (PSTN/ ISDN) and broadband (xDSL) Internet
    access and services to homes across Norway. At December 31,
    2005, we had approximately 922,000 PSTN subscriptions, 286,000
    ISDN basic rate access subscriptions and 24,000 VoIP
    subscriptions for telephony services. We also had 579,000
    Internet access subscriptions in the residential market,
    comprising 165,000 narrowband (ISDN/ PSTN) subscriptions and
    414,000 broadband (xDSL) subscriptions.
|
| |  | Business market. We provide our business customers, which
    include a number of public sector entities, with PSTN, ISDN and
    VoIP telephony services, Internet access via xDSL and leased
    lines services. At December 31, 2005, we had approximately
    167,000 PSTN subscriptions, 216,000 basic rate, 7,000 primary
    rate ISDN subscriptions and 1,600 VoIP subscriptions for
    telephony services. We also had 61,000 subscriptions for
    Internet access via xDSL in this market. In addition, we provide
    integrated voice and data telecommunications, access and network
    services to the business market in Norway.                                                                                     

48



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Wholesale market. We provide a range of interconnection
    and capacity services, including leased lines, in the Norwegian
    market. Our interconnection and capacity services allow other
    network operators, Internet service providers and other service
    providers to connect to our network or use our infrastructure in
    order to facilitate their own service offerings. We also provide
    international operators with transit and capacity services for
    international voice and data traffic into or through Norway. We
    provide unbundled telephony access (PSTN and ISDN) and xDSL
    access, to other operators and service providers. Further, we
    provide local loop unbundling (LLUB) and shared access to
    the local loop, which enables other operators able to provide
    end users with broadband.



| |             
| | ------------
| | Fixed Sweden

IP-based IP-TV




| |              
| | -------------
| | Fixed Denmark



Fixed Norway




| |                   
| | ------------------
| | Residential Market





| |         
| | --------
| | Services



Analog (PSTN). dial-up


ISDN. dial-up


xDSL.


49



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VoIP.


Value-added services.




| |                 
| | ----------------
| | Fees and tariffs

Familie & Venner






| |              
| | -------------
| | Subscriptions



|                              |                             |                    |       |       |      |  |       |       |  |  |       |     | 
|----------------------------- | --------------------------- | ------------------ | ----- | ----- | ---- |  | ----- | ----- |  |  | ----- | --- | 
|                              |                             | As of December 31, |      
|                              |                             |                    |      
|                              |                             | 2003               |       |       | 2004 |  |       | 2005  | 
|                              |                             |                    |       |       |      |  |       |       | 
|                              |                             | (in thousands)     |      
|Telephony                     |                             |                    |       |       |      |  |       |       |  |  |       |    
|                              | Analog (PSTN)               |                    |       | 1,096 |      |  |       | 1,001 |  |  |       | 922 | 
|                              | Digital (ISDN)(1)           |                    |       | 454   |      |  |       | 371   |  |  |       | 286 | 
|                              | VoIP (Broadband)            |                    |       |      |      |  |       |      |  |  |       | 24  | 
|                              |                             |                    |       |       |      |  |       |       | 
|Total telephony subscriptions |                             |                    | 1,550 |       |      |  | 1,372 |       |  |  | 1,232 |    
|                              |                             |                    |       |       |      |  |       |       | 
|Internet Access               |                             |                    |       |       |      |  |       |       |  |  |       |    
|                              | PSTN/ ISDN access (dial-up) |                    |       | 294   |      |  |       | 241   |  |  |       | 165 | 
|                              | xDSL access                 |                    |       | 163   |      |  |       | 286   |  |  |       | 414 | 
|                              |                             |                    |       |       |      |  |       |       | 
|Total subscriptions           |                             |                    | 457   |       |      |  | 527   |       |  |  | 579   |    
|                              |                             |                    |       |       |      |  |       |       | 






|    |                                                                                             
|--- | --------------------------------------------------------------------------------------------
|(1) | Each digital (ISDN) subscription in the residential market
    provides two access channels.



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| |        
| | -------
| | Traffic



|                                                                             |  |                         |        |   |                     |  |       |      |  |  |           |  |  |           |       |   |  |  |       |  
|---------------------------------------------------------------------------- |  | ----------------------- | ------ | - | ------------------- |  | ----- | ---- |  |  | --------- |  |  | --------- | ----- | - |  |  | ----- | -
|                                                                             |  | Year ended December 31, |        |   | Increase (decrease) | 
|                                                                             |  |                         |        |   |                     | 
|                                                                             |  | 2003                    |        |   | 2004                |  |       | 2005 |  |  | 2003/2004 |  |  | 2004/2005 |      
|                                                                             |  |                         |        |   |                     |  |       |      |  |  |           |  |  |           |      
|                                                                             |  |                         |        | % |                     |  | %     |     
|                                                                             |  | (millions of minutes)   |        |   |                     |  |      
|Traffic:                                                                     |  |                         |        |   |                     |  |       |      |  |  |           |  |  |           |       |   |  |  |       |  
|National traffic (exclusive internet traffic and calls to mobile
    phones) |  |                         | 5,202  |   |                     |  | 4,654 |      |  |  | 3,963     |  |  |           | (10.5 | ) |  |  | (14.8 | )
|Internet traffic                                                             |  |                         | 3,323  |   |                     |  | 2,605 |      |  |  | 1,533     |  |  |           | (21.6 | ) |  |  | (41.2 | )
|Calls to mobile phones                                                       |  |                         | 847    |   |                     |  | 810   |      |  |  | 781       |  |  |           | (4.4  | ) |  |  | (3.6  | )
|International                                                                |  |                         | 207    |   |                     |  | 193   |      |  |  | 167       |  |  |           | (6.8  | ) |  |  | (13.5 | )
|Other                                                                        |  |                         | 520    |   |                     |  | 529   |      |  |  | 424       |  |  |           | 1.7   |   |  |  | (19.8 | )
|                                                                             |  |                         |        |   |                     |  |       |      |  |  |           |  |  |           |      
|Total                                                                        |  |                         | 10,099 |   |                     |  | 8,791 |      |  |  | 6,868     |  |  |           | (13.0 | ) |  |  | (21.9 | )
|                                                                             |  |                         |        |   |                     |  |       |      |  |  |           |  |  |           |      
|Market share (based on minutes)                                              |  |                         |        |   |                     |  |       |      |  |  |           |  |  |           |       |   |  |  |       |  
|Total residential(1)                                                         |  |                         | 67%    |   |                     |  | 68%   |      |  |  | 65%       |  |  |           |       |   |  |  |       |  






|    |                        
|--- | -----------------------
|(1) | Average during the year



| |            
| | -----------
| | Competition

dial-up Dial-up dial-up dial-up








| |                
| | ---------------
| | Business Market



51



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| |         
| | --------
| | Services

Basic network services.


Leased Lines.


Internet access.


VPN.


Nordicom.


Value-added telephony services.


Messaging. e-mail e-mail, e-mail


Managed Voice Services.


52



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| |              
| | -------------
| | Subscriptions



|                |                     |                               |  |     |      |  |  |      |     |  |  |     |     | 
|--------------- | ------------------- | ----------------------------- |  | --- | ---- |  |  | ---- | --- |  |  | --- | --- | 
|                |                     | As of December 31,            | 
|                |                     |                               | 
|                |                     | 2003                          |  |     | 2004 |  |  | 2005 |    
|                |                     |                               |  |     |      |  |  |      |    
|                |                     | (in thousands)                | 
|Telephony       |                     |                               |  |     |      |  |  |      |     |  |  |    
|                | Analog (PSTN)       |                               |  | 212 |      |  |  | 181  |     |  |  | 167 |    
|                | Digital (ISDN)(1)   |                               |  | 278 |      |  |  | 247  |     |  |  | 223 |    
|                |                     | Of which basic rate(1)        |  |     | 270  |  |  |      | 239 |  |  |     | 216 | 
|                |                     | Of which primarly rate(1)     |  |     | 8    |  |  |      | 8   |  |  |     | 7   | 
|                |                     | VoIP (Broadband)              |  |     |     |  |  |      |    |  |  |     | 2   | 
|                |                     |                               |  |     |      |  |  |      |    
|                |                     | Total telephony subscriptions |  |     | 490  |  |  |      | 428 |  |  |     | 390 | 
|                |                     |                               |  |     |      |  |  |      |    
|Internet Access |                     |                               |  |     |      |  |  |      |     |  |  |    
|                | xDSL access         |                               |  | 14  |      |  |  | 40   |     |  |  | 61  |    
|                |                     |                               |  |     |      |  |  |      |    
|                | Total subscriptions |                               |  | 14  |      |  |  | 40   |     |  |  | 61  |    
|                |                     |                               |  |     |      |  |  |      |    






|    |                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | A basic rate digital (ISDN) subscription provides two
    access channels and a primary rate digital
    (ISDN) subscription provides 12 to 30 access channels.





| |        
| | -------
| | Traffic



|                                                                             |  |                         |       |   |                     |  |       |      |  |  |           |   |  |           |       |   |  |  |       |  
|---------------------------------------------------------------------------- |  | ----------------------- | ----- | - | ------------------- |  | ----- | ---- |  |  | --------- | - |  | --------- | ----- | - |  |  | ----- | -
|                                                                             |  | Year ended December 31, |       |   | Increase (decrease) | 
|                                                                             |  |                         |       |   |                     | 
|                                                                             |  | 2003                    |       |   | 2004                |  |       | 2005 |  |  | 2003/2004 |   |  | 2004/2005 |      
|                                                                             |  |                         |       |   |                     |  |       |      |  |  |           |   |  |           |      
|                                                                             |  | (millions of minutes)   |       |   | %                   |  |       | %    | 
|Traffic:                                                                     |  |                         |       |   |                     |  |       |      |  |  |           |   |  |           |       |   |  |  |       |  
|National traffic (exclusive internet traffic and calls to mobile
    phones) |  |                         | 3,001 |   |                     |  | 2,353 |      |  |  | 1,797     |   |  |           | (21.6 | ) |  |  | (23.6 | )
|Internet traffic                                                             |  |                         | 1,296 |   |                     |  | 972   |      |  |  | 548       |   |  |           | (25.0 | ) |  |  | (43.6 | )
|Calls to mobile phones                                                       |  |                         | 595   |   |                     |  | 552   |      |  |  | 551       |   |  |           | (7.2  | ) |  |  | (0.2  | )
|International                                                                |  |                         | 133   |   |                     |  | 115   |      |  |  | 110       |   |  |           | (13.5 | ) |  |  | (4.3  | )
|Other                                                                        |  |                         | 261   |   |                     |  | 243   |      |  |  | 196       |   |  |           | (6.9  | ) |  |  | (19.3 | )
|                                                                             |  |                         |       |   |                     |  |       |      |  |  |           |   |  |           |      
|Total                                                                        |  |                         | 5,286 |   |                     |  | 4,235 |      |  |  | 3,202     |   |  |           | (19.9 | ) |  |  | (24.4 | )
|                                                                             |  |                         |       |   |                     |  |       |      |  |  |           |   |  |           |      
|Market share (based on minutes)                                              |  |                         |       |   |                     |  |       |      |  |  |           |   |  |           |       |   |  |  |       |  
|Total residential(1)                                                         |  |                         | 74    | % |                     |  | 72    | %    |  |  | 68        | % |  |           |       |   |  |  |       |  

53



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|    |                        
|--- | -----------------------
|(1) | Average during the year



| |                           
| | --------------------------
| | Distribution and marketing





| |            
| | -----------
| | Competition





| |                 
| | ----------------
| | Wholesale Market



| |                   
| | ------------------
| | Domestic wholesale

Interconnection services.


Local loop unbundling.


xDSL.


Intelligent network services.


Wholesale line rental.


54



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| |       
| | ------
| | Access



|                              |                           |                    |     |     |      |  |     |      |  |  |     |     | 
|----------------------------- | ------------------------- | ------------------ | --- | --- | ---- |  | --- | ---- |  |  | --- | --- | 
|                              |                           | As of December 31, |    
|                              |                           |                    |    
|                              |                           | 2003               |     |     | 2004 |  |     | 2005 | 
|                              |                           |                    |     |     |      |  |     |      | 
|                              |                           | (in thousands)     |    
|Telephony                     |                           |                    |     |     |      |  |     |      |  |  |     |    
|                              | Analog (PSTN)             |                    |     | 104 |      |  |     | 188  |  |  |     | 202 | 
|                              | Digital (ISDN)(1)         |                    |     | 57  |      |  |     | 114  |  |  |     | 111 | 
|                              | Of which basic rate(1)    |                    |     | 57  |      |  |     | 113  |  |  |     | 110 | 
|                              | Of which primarly rate(1) |                    |     |    |      |  |     | 1    |  |  |     | 1   | 
|                              |                           |                    |     |     |      |  |     |      | 
|Total telephony subscriptions |                           |                    | 161 |     |      |  | 302 |      |  |  | 313 |    
|                              |                           |                    |     |     |      |  |     |      | 
|xDSL access                   |                           |                    | 56  |     |      |  | 91  |      |  |  | 109 |    
|LLUB access                   |                           |                    | 80  |     |      |  | 145 |      |  |  | 235 |    






|    |                                                                                                                                                                
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | A basic rate digital (ISDN) subscription provides two
    access channels and a primary rate digital (ISDN) subscription
    provides 12 to 30 access channels.



| |            
| | -----------
| | Competition







| |                        
| | -----------------------
| | International wholesale



International direct dialing.


Roaming.


Leased capacity services. point-to-


55



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##### Table of Contents







| |                   
| | ------------------
| | Network Operations



| |                        
| | -----------------------
| | Domestic infrastructure



Trunk transmission network.






Access network.






| |                             
| | ----------------------------
| | International infrastructure

International wholesale network.




Transatlantic submarine cable.




56



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Global Capacity Services.




| |             
| | ------------
| | Fixed Sweden



dial-up


IP-TV




|                 |  |                |     |  |      |  |     | 
|---------------- |  | -------------- | --- |  | ---- |  | --- | 
|                 |  | As of          |    
|                 |  | December 31,   |    
|                 |  |                |    
|                 |  | 2004           |     |  | 2005 | 
|                 |  |                |     |  |      | 
|                 |  | (in thousands) |    
|VoIP (Broadband) |  |                | 67  |  |      |  | 104 | 
|Internet Access  |  |                |     |  |      |  |     | 
|LAN access(1)    |  |                | 139 |  |      |  | 155 | 
|xDSL access      |  |                | 164 |  |      |  | 214 | 
|TV subscriptions |  |                | 1   |  |      |  | 12  | 

57



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|    |                                    
|--- | -----------------------------------
|(1) | LAN stands for Local Area Network



Fixed Denmark








|                 |  |                |    |  |      |  |     | 
|---------------- |  | -------------- | -- |  | ---- |  | --- | 
|                 |  | As of          |   
|                 |  | December 31,   |   
|                 |  |                |   
|                 |  | 2004           |    |  | 2005 | 
|                 |  |                |    |  |      | 
|                 |  | (in thousands) |   
|VoIP (Broadband) |  |                | 2  |  |      |  | 26  | 
|xDSL access      |  |                | 77 |  |      |  | 122 | 



TELENOR BROADCAST


Overview






Distribution. pay-TV pay-TV pay-TV


Transmission.


58



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Other.


Distribution






pay-TV pay-TV






|                          |  |        |           |  |        |  |         |         |  |  |         |  |  |       |         |  |  |  |           | 
|------------------------- |  | ------ | --------- |  | ------ |  | ------- | ------- |  |  | ------- |  |  | ----- | ------- |  |  |  | --------- | 
|                          |  | Norway |           |  | Sweden |  |         | Denmark |  |  | Finland |  |  | Total |        
|                          |  |        |           |  |        |  |         |         |  |  |         |  |  |       |        
|Subscribers Broadcast     |  |        |           |  |        |  |         |         |  |  |         |  |  |       |         |  |  |  |           | 
|DTH pay-TV subscribers    |  |        | 341,000   |  |        |  | 361,000 |         |  |  | 151,000 |  |  |       | 53,000  |  |  |  | 906,000   | 
|DTH basic tier households |  |        | 135,000   |  |        |  | 48,000  |         |  |  | 36,000  |  |  |       | 3,000   |  |  |  | 222,000   | 
|Cable TV subscribers      |  |        | 409,000   |  |        |  | 242,000 |         |  |  | 30,000  |  |  |       |        |  |  |  | 681,000   | 
|SMATV households          |  |        | 196,000   |  |        |  | 271,000 |         |  |  | 634,000 |  |  |       | 76,000  |  |  |  | 1,177,000 | 
|DTT pay-TV subscribers    |  |        |          |  |        |  |        |         |  |  |        |  |  |       | 33,000  |  |  |  | 33,000    | 
|                          |  |        |           |  |        |  |         |         |  |  |         |  |  |       |        
|Total                     |  |        | 1,081,000 |  |        |  | 922,000 |         |  |  | 851,000 |  |  |       | 165,000 |  |  |  | 3,019,000 | 
|                          |  |        |           |  |        |  |         |         |  |  |         |  |  |       |        



| |    
| | ---
| | DTH

pay-TV pay-TV pay-TV pay-TV


59



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|                          |  |                         |           |  |      |  |           |      |  |  |           | 
|------------------------- |  | ----------------------- | --------- |  | ---- |  | --------- | ---- |  |  | --------- | 
|                          |  | Year ended December 31, |          
|                          |  |                         |          
|                          |  | 2003                    |           |  | 2004 |  |           | 2005 | 
|                          |  |                         |           |  |      |  |           |      | 
|Subscribers at period end |  |                         |           |  |      |  |           |      |  |  |           | 
|DTH pay-TV subscribers    |  |                         | 763,000   |  |      |  | 824,000   |      |  |  | 906,000   | 
|DTH basic tier households |  |                         | 241,000   |  |      |  | 253,000   |      |  |  | 222,000   | 
|                          |  |                         |           |  |      |  |           |      | 
|Total subscribers         |  |                         | 1,004,000 |  |      |  | 1,077,000 |      |  |  | 1,128,000 | 
|                          |  |                         |           |  |      |  |           |      | 





| |         
| | --------
| | Cable TV

cable-TV


pay-TV






|                          |                               |                         |         |        |      |  |         |        |  |  |         |        | 
|------------------------- | ----------------------------- | ----------------------- | ------- | ------ | ---- |  | ------- | ------ |  |  | ------- | ------ | 
|                          |                               | Year ended December 31, |        
|                          |                               |                         |        
|                          |                               | 2003                    |         |        | 2004 |  |         | 2005   | 
|                          |                               |                         |         |        |      |  |         |        | 
|Subscribers at period end |                               |                         |         |        |      |  |         |        |  |  |         |       
|Basic tier                |                               |                         | 604,000 |        |      |  | 624,000 |        |  |  | 681,000 |       
|                          | Of which digital pay-TV       |                         |         | 35,000 |      |  |         | 51,000 |  |  |         | 58,000 | 
|                          | Cable TV Internet subscribers |                         |         | 31,000 |      |  |         | 44,000 |  |  |         | 73,000 | 

pay-TV




| |      
| | -----
| | SMATV

pay-TV




|                 |  |                         |           |  |      |  |           |      |  |  |           | 
|---------------- |  | ----------------------- | --------- |  | ---- |  | --------- | ---- |  |  | --------- | 
|                 |  | Year ended December 31, |          
|                 |  |                         |          
|                 |  | 2003                    |           |  | 2004 |  |           | 2005 | 
|                 |  |                         |           |  |      |  |           |      | 
|SMATV households |  |                         | 1,098,000 |  |      |  | 1,212,000 |      |  |  | 1,177,000 | 

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| |    
| | ---
| | DTT

pay-TV pay-TV pay-TV


pay-TV




| |            
| | -----------
| | Competition











pay-TV


61



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Transmission




| |                               
| | ------------------------------
| | Telenor Satellite Broadcasting





|                              |  |                         |    |  |      |  |    |      |  |  |    | 
|----------------------------- |  | ----------------------- | -- |  | ---- |  | -- | ---- |  |  | -- | 
|                              |  | Year ended December 31, |   
|                              |  |                         |   
|                              |  | 2003                    |    |  | 2004 |  |    | 2005 | 
|                              |  |                         |    |  |      |  |    |      | 
|Used for digital transmission |  |                         | 32 |  |      |  | 33 |      |  |  | 33 | 
|Used for analog transmission  |  |                         | 6  |  |      |  | 3  |      |  |  | 3  | 
|Spare capacity                |  |                         | 5  |  |      |  | 4  |      |  |  | 4  | 
|                              |  |                         |    |  |      |  |    |      | 
|Total number of transponders  |  |                         | 43 |  |      |  | 40 |      |  |  | 40 | 
|                              |  |                         |    |  |      |  |    |      | 







| |            
| | -----------
| | Competition





| |         
| | --------
| | Norkring





62



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Other




| |                           
| | --------------------------
| | Conditional access systems

Pay-TV






| |                  
| | -----------------
| | Related interests

A-pressen,




pay-TV


EDB BUSINESS PARTNER ASA


Overview




Strategy and recent developments






| |   |                                                                                                                                        
| | - | ---------------------------------------------------------------------------------------------------------------------------------------
| |  | to be a leading expertise-based IT business, focusing on
    application development and infrastructure and network
    operations; and

63



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| |   |                                                                                                                                                                                                                
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | to take advantage of current IT trends, such as increased
    outsourcing of IT departments, the growth of Internet
    applications,
    e-commerce, Internet
    banking, and business critical applications.

® ®




®














64



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Business Areas and Services




Competition






SATELLITE SERVICES


Overview




Mobile Satellite Services




| |         
| | --------
| | Overview







| |         
| | --------
| | Services



65



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| |                                   
| | ----------------------------------
| | Mobile telephony and data services







| |             
| | ------------
| | Leased lines





| |               
| | --------------
| | Other services





| |            
| | -----------
| | Competition





66



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| |                                  
| | ---------------------------------
| | Corporate Networks (CN) and Taide

point-to






OPPLYSNINGEN AS








RESEARCH AND DEVELOPMENT






67



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REGULATION




| |                       
| | ----------------------
| | Regulatory Environment



European Union Regulation














68



---



##### Table of Contents





| |                
| | ---------------
| | WTO Obligations



Norway






Regulatory framework and developments








69



---



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Regulations on the provision of networks and
telecommunications services






Regulation of satellite, cable television, terrestrial
broadcasting networks and television distribution










70



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Universal service obligations (USO)






Special service obligations (SSO)




Non-discrimination, transparency and objectivity
requirements






Cost accounting and price regulation






71



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##### Table of Contents









|                         |  |                   |        |  |      |  |        |      |  |  |       | 
|------------------------ |  | ----------------- | ------ |  | ---- |  | ------ | ---- |  |  | ----- | 
|                         |  | 2002              |        |  | 2003 |  |        | 2004 | 
|                         |  |                   |        |  |      |  |        |      | 
|                         |  | (NOK in millions) |       
|Fixed telephony          |  |                   |        |  |      |  |        |      |  |  |       | 
|Operating profit         |  |                   | 2,184  |  |      |  | 2,607  |      |  |  | 2,660 | 
|Average capital employed |  |                   | 11,735 |  |      |  | 10,281 |      |  |  | 8,747 | 
|Mobile telephony         |  |                   |        |  |      |  |        |      |  |  |       | 
|Operating profit         |  |                   | 2,221  |  |      |  | 2,222  |      |  |  | 2,369 | 
|Average capital employed |  |                   | 3,431  |  |      |  | 2,932  |      |  |  | 2,938 | 
|Leased lines             |  |                   |        |  |      |  |        |      |  |  |       | 
|Operating profit         |  |                   | 295    |  |      |  | 316    |      |  |  | 469   | 
|Average capital employed |  |                   | 3,287  |  |      |  | 3,259  |      |  |  | 2,934 | 



Accounting separation and review




Interconnection and access  General




Fixed network interconnection




72



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Mobile network interconnection


set-up


Access for resellers in the fixed network (Wholesale line
rental)




Access for Mobile Virtual Network Operators (MVNOs)


SIM-card


Access for mobile service providers


SIM-cards,




Access for value-added telephony service providers




73



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Access for broadband service providers




Local loop unbundling






Wholesale Leased Lines




co-location.


Mobile national roaming






74



---



##### Table of Contents



Retail Markets




Carrier selection




Number portability


IP-telephony


Rights of way




VoIP regulation


any-to any-to




| |                
| | ---------------
| | Competition Law



75



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| |                                
| | -------------------------------
| | Norwegian Competition Authority













| |                                  
| | ---------------------------------
| | EFTA Surveillance Authority (ESA)



76



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| |                    
| | -------------------
| | Consumer Protection





| |                
| | ---------------
| | Gender Equality





| |               
| | --------------
| | Data Retention



ORGANIZATIONAL STRUCTURE




PROPERTY, PLANTS AND EQUIPMENT






|                        |  |                   |     |  |      |  |    |      |  |  |      |  |  |      |    |  |            |  |    |  |  |  |     | 
|----------------------- |  | ----------------- | --- |  | ---- |  | -- | ---- |  |  | ---- |  |  | ---- | -- |  | ---------- |  | -- |  |  |  | --- | 
|                        |  | 2005              |     |  | 2006 |  |    | 2007 |  |  | 2008 |  |  | 2009 |    |  | After 2009 | 
|                        |  |                   |     |  |      |  |    |      |  |  |      |  |  |      |    |  |            | 
|                        |  | (NOK in millions) |    
|Total lease obligations |  |                   | 151 |  |      |  | 90 |      |  |  | 72   |  |  |      | 65 |  |            |  | 58 |  |  |  | 218 | 



77



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|         |                          
|-------- | -------------------------
|ITEM 4A: | UNRESOLVED STAFF COMMENTS








|        |                                             
|------- | --------------------------------------------
|ITEM 5: | OPERATING AND FINANCIAL REVIEW AND PROSPECTS

INTRODUCTION


The following discussion should be read in conjunction with
our consolidated financial statements, which have been prepared
in accordance with IFRS as adopted by the European Union, which
differ in certain respects from US GAAP. For a reconciliation of
the material differences between IFRS and US GAAP, you should
read note 38 to our consolidated financial statements.










| |   |                                                                                                  
| | - | -------------------------------------------------------------------------------------------------
| |  | the political, economic and legal environment in the foreign
    countries in which we operate;  
|
| |  | increased competition;                                                                           
|
| |  | the actions of other principal shareholders within consolidated
    or main associated companies;
|
| |  | our exposure to currency exchange rate fluctuations, when
    reporting in Norwegian Krone;      
|
| |  | regulatory developments both in and outside Norway.                                              

20-F


78



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DEFINITIONS




Man-years. full-time


Mobile Operations


Subscription and traffic


Interconnection revenues


Other mobile revenues


Non-mobile revenues


Subscriptions. SIM-card SIM-cards SIM-cards SIM-cards


Average traffic minutes per subscription per month
(AMPU).


Average revenue per subscription per month (ARPU).


Mobile revenues from companys subscriptions


SMS/MMS and content messages.


Costs of material and traffic charges.


Other operating expenses.


Fixed Operations


Telephony


79



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xDSL/Internet


Data services IP-VPN.


Other revenues


Wholesale revenues


Broadcast Operations


Distribution


Transmission 1-degree


Other


GROUP OVERVIEW










80



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##### Table of Contents



RESULTS OF OPERATIONS  GROUP


Revenues


|                          |  |                   |        |          |          |  |        |       |          |  |          |   |  |  |        |  
|------------------------- |  | ----------------- | ------ | -------- | -------- |  | ------ | ----- | -------- |  | -------- | - |  |  | ------ | -
|                          |  | 2004              |        |          | 2005     | 
|                          |  |                   |        |          |          | 
|                          |  |                   |        | Of which |          |  |        |       | Of which | 
|Revenues                  |  | Total             |        |          | external |  |        | Total |          |  | external |  
|                          |  |                   |        |          |          |  |        |       |          |  |          |  
|                          |  | (NOK in millions) |       
|Telenor Mobil  Norway    |  |                   | 11,730 |          |          |  | 10,504 |       |          |  | 12,243   |   |  |  | 11,072 |  
|Sonofon  Denmark         |  |                   | 4,404  |          |          |  | 4,351  |       |          |  | 5,191    |   |  |  | 5,059  |  
|Kyivstar  Ukraine        |  |                   | 4,219  |          |          |  | 4,217  |       |          |  | 7,272    |   |  |  | 7,266  |  
|Pannon GSM  Hungary      |  |                   | 5,907  |          |          |  | 5,901  |       |          |  | 6,061    |   |  |  | 6,051  |  
|DiGi.Com  Malaysia       |  |                   | 3,946  |          |          |  | 3,943  |       |          |  | 4,932    |   |  |  | 4,928  |  
|GrameenPhone  Bangladesh |  |                   | 2,186  |          |          |  | 2186   |       |          |  | 2,970    |   |  |  | 2,969  |  
|Other mobile operations   |  |                   | 423    |          |          |  | 335    |       |          |  | 2,219    |   |  |  | 2,076  |  
|Fixed                     |  |                   | 19,256 |          |          |  | 17,433 |       |          |  | 19,313   |   |  |  | 17,140 |  
|Broadcast                 |  |                   | 5,346  |          |          |  | 5211   |       |          |  | 5,649    |   |  |  | 5,518  |  
|Other operations          |  |                   | 9,540  |          |          |  | 6,611  |       |          |  | 9,967    |   |  |  | 7,060  |  
|Eliminations              |  |                   | (6,366 | )        |          |  | (101   | )     |          |  | (6,890   | ) |  |  | (212   | )
|                          |  |                   |        |          |          |  |        |       |          |  |          |  
|Total revenues            |  |                   | 60,591 |          |          |  | 60,591 |       |          |  | 68,927   |   |  |  | 68,927 |  
|                          |  |                   |        |          |          |  |        |       |          |  |          |  











|               |  |                   |        |  |      |  |        | 
|-------------- |  | ----------------- | ------ |  | ---- |  | ------ | 
|               |  | 2004              |        |  | 2005 | 
|               |  |                   |        |  |      | 
|               |  | (NOK in millions) |       
|Revenues       |  |                   |        |  |      |  |        | 
|Norway         |  |                   | 33,397 |  |      |  | 33,556 | 
|Outside Norway |  |                   | 27,194 |  |      |  | 35,371 | 
|               |  |                   |        |  |      | 
|Total revenues |  |                   | 60,591 |  |      |  | 68,927 | 
|               |  |                   |        |  |      | 

81



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Operating Expenses




| |                                       
| | --------------------------------------
| | Costs of materials and traffic charges

|                                       |  |                   |        |  |      |  |        | 
|-------------------------------------- |  | ----------------- | ------ |  | ---- |  | ------ | 
|                                       |  | 2004              |        |  | 2005 | 
|                                       |  |                   |        |  |      | 
|                                       |  | (NOK in millions) |       
|Traffic charges  network capacity     |  |                   | 8,875  |  |      |  | 10,634 | 
|Traffic charges  satellite capacity   |  |                   | 1,191  |  |      |  | 1,066  | 
|Costs of materials etc                 |  |                   | 5,858  |  |      |  | 6,011  | 
|                                       |  |                   |        |  |      | 
|Costs of materials and traffic charges |  |                   | 15,924 |  |      |  | 17,711 | 
|                                       |  |                   |        |  |      | 





TV-program TV-decoders.




| |                     
| | --------------------
| | Own work capitalized

|                             |  |                   |     |  |      |  |     | 
|---------------------------- |  | ----------------- | --- |  | ---- |  | --- | 
|                             |  | 2004              |     |  | 2005 | 
|                             |  |                   |     |  |      | 
|                             |  | (NOK in millions) |    
|Costs of materials etc.      |  |                   | 162 |  |      |  | 216 | 
|Salaries and personnel costs |  |                   | 311 |  |      |  | 349 | 
|Other operating expenses     |  |                   | 84  |  |      |  | 139 | 
|                             |  |                   |     |  |      | 
|Total own work capitalized   |  |                   | 557 |  |      |  | 704 | 
|                             |  |                   |     |  |      | 



82



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| |                             
| | ----------------------------
| | Salaries and personnel costs

|                                                       |  |                   |       |  |      |  |        | 
|------------------------------------------------------ |  | ----------------- | ----- |  | ---- |  | ------ | 
|                                                       |  | 2004              |       |  | 2005 | 
|                                                       |  |                   |       |  |      | 
|                                                       |  | (NOK in millions) |      
|Salaries and holiday pay                               |  |                   | 7,554 |  |      |  | 7,794  | 
|Social security tax                                    |  |                   | 1,142 |  |      |  | 1,138  | 
|Pension costs including social security tax            |  |                   | 837   |  |      |  | 772    | 
|Share-based payments, excluding social security tax(1) |  |                   | 28    |  |      |  | 20     | 
|Other personnel costs                                  |  |                   | 409   |  |      |  | 512    | 
|                                                       |  |                   |       |  |      | 
|Total salaries and personnel costs                     |  |                   | 9,970 |  |      |  | 10,236 | 
|                                                       |  |                   |       |  |      | 






|    |                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------
|(1) | Include share options and employee share ownership program,
    excluding social security tax on these payments.











| |                         
| | ------------------------
| | Other operating expenses

|                                                       |  |                   |        |  |      |  |        | 
|------------------------------------------------------ |  | ----------------- | ------ |  | ---- |  | ------ | 
|                                                       |  | 2004              |        |  | 2005 | 
|                                                       |  |                   |        |  |      | 
|                                                       |  | (NOK in millions) |       
|Operating lease of building, land and equipment        |  |                   | 1,070  |  |      |  | 1,248  | 
|Other cost of premises, vehicles, office equipment etc |  |                   | 793    |  |      |  | 860    | 
|Operation and maintenance                              |  |                   | 3,628  |  |      |  | 4,315  | 
|Travel and travel allowances                           |  |                   | 482    |  |      |  | 489    | 
|Postage freight, distribution and telecommunication    |  |                   | 296    |  |      |  | 389    | 
|Concession fees                                        |  |                   | 582    |  |      |  | 862    | 
|Marketing and sales commission                         |  |                   | 3,735  |  |      |  | 4,873  | 
|Advertising                                            |  |                   | 1,416  |  |      |  | 2,019  | 
|Bad debt                                               |  |                   | 248    |  |      |  | 311    | 
|Consultancy fees and external personnel                |  |                   | 1,350  |  |      |  | 1,757  | 
|Other                                                  |  |                   | 271    |  |      |  | 483    | 
|                                                       |  |                   |        |  |      | 
|Total other operating expenses                         |  |                   | 13,871 |  |      |  | 17,606 | 
|                                                       |  |                   |        |  |      | 

83



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| |                          
| | -------------------------
| | Other income and expenses

|                                                        |  |                   |     |      |  |  |     | 
|------------------------------------------------------- |  | ----------------- | --- | ---- |  |  | --- | 
|                                                        |  | 2004              |     | 2005
|                                                        |  |                   |     |     
|                                                        |  | (NOK in millions)
|Gains on disposal of fixed assets and operations        |  |                   |     |      |  |  |     | 
|Sonofon  Denmark                                       |  |                   |    |      |  |  | 1   | 
|Pannon GSM  Hungary                                    |  |                   | 5   |      |  |  | 10  | 
|Fixed                                                   |  |                   | 10  |      |  |  | 88  | 
|Broadcast                                               |  |                   | 1   |      |  |  | 1   | 
|EDB Business Partner                                    |  |                   | 303 |      |  |  | 31  | 
|Other business units                                    |  |                   | 144 |      |  |  | 22  | 
|Corporate functions and Group activities                |  |                   | 99  |      |  |  | 163 | 
|Eliminations                                            |  |                   |    |      |  |  | 4   | 
|                                                        |  |                   |     |      |  |  |     | 
|Total gains on disposal of fixed assets and operations  |  |                   | 562 |      |  |  | 320 | 
|                                                        |  |                   |     |      |  |  |     | 
|Losses on disposal of fixed assets and operations       |  |                   |     |      |  |  |     | 
|Telenor Mobil  Norway                                  |  |                   |    |      |  |  | 16  | 
|Pannon GSM  Hungary                                    |  |                   | 3   |      |  |  | 19  | 
|DiGi.Com  Malaysia                                     |  |                   |    |      |  |  | 5   | 
|GrameenPhone  Bangladesh                               |  |                   | 8   |      |  |  | 10  | 
|Other mobile operations                                 |  |                   |    |      |  |  | 1   | 
|Fixed                                                   |  |                   | 25  |      |  |  | 65  | 
|Broadcast                                               |  |                   | 1   |      |  |  | 1   | 
|Other business units                                    |  |                   | 21  |      |  |  | 1   | 
|Corporate functions and Group activities                |  |                   | 31  |      |  |  | 33  | 
|Eliminations                                            |  |                   | (15 | )    |  |  | 1   | 
|                                                        |  |                   |     |      |  |  |     | 
|Total losses on disposal of fixed assets and operations |  |                   | 74  |      |  |  | 152 | 
|                                                        |  |                   |     |      |  |  |     | 

84



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|                                                                   |  |                   |      |   |      |  |      |  
|------------------------------------------------------------------ |  | ----------------- | ---- | - | ---- |  | ---- | -
|                                                                   |  | 2004              |      |   | 2005 | 
|                                                                   |  |                   |      |   |      | 
|                                                                   |  | (NOK in millions) |     
|Expenses for workforce reductions and onerous (loss)
    contracts |  |                   |      |   |      |  |      |  
|Telenor Mobil  Norway                                             |  |                   | 24   |   |      |  | (2   | )
|Sonofon  Denmark                                                  |  |                   | 28   |   |      |  | 12   |  
|Pannon GSM  Hungary                                               |  |                   | 16   |   |      |  | 10   |  
|Other mobile operations                                            |  |                   | 562  |   |      |  | 414  |  
|Fixed                                                              |  |                   | 86   |   |      |  | 159  |  
|Broadcast                                                          |  |                   | 5    |   |      |  |     |  
|EDB Business Partner                                               |  |                   | 33   |   |      |  | 18   |  
|Other business units                                               |  |                   | 28   |   |      |  | 15   |  
|Corporate functions and Group activities                           |  |                   | 116  |   |      |  | 29   |  
|Eliminations                                                       |  |                   | (562 | ) |      |  | (245 | )
|Total workforce reductions and onerous (loss) contracts            |  |                   | 336  |   |      |  | 410  |  
|                                                                   |  |                   |      |   |      | 
|Total other (income) and expenses                                  |  |                   | (152 | ) |      |  | 242  |  
|                                                                   |  |                   |      |   |      | 









Depreciation, Amortization and Write-downs


|                                                       |  |                   |        |  |      |  |        | 
|------------------------------------------------------ |  | ----------------- | ------ |  | ---- |  | ------ | 
|                                                       |  | 2004              |        |  | 2005 | 
|                                                       |  |                   |        |  |      | 
|                                                       |  | (NOK in millions) |       
|Depreciation of property, plant and equipment          |  |                   | 7,737  |  |      |  | 8,059  | 
|Amortization of intangible assets (excluding goodwill) |  |                   | 2,900  |  |      |  | 3,411  | 
|                                                       |  |                   |        |  |      | 
|Amortization of prepaid leases                         |  |                   |       |  |      |  | 74     | 
|                                                       |  |                   |        |  |      | 
|Total depreciation and amortization                    |  |                   | 10,637 |  |      |  | 11,544 | 
|                                                       |  |                   |        |  |      | 
|Write-downs of property, plant and equipment           |  |                   | 282    |  |      |  | 488    | 
|Write-downs of goodwill                                |  |                   | 3,129  |  |      |  | 46     | 
|Write-downs of intangible assets (excluding goodwill)  |  |                   | 120    |  |      |  | 53     | 
|Total write-downs                                      |  |                   | 3,531  |  |      |  | 587    | 
|                                                       |  |                   |        |  |      | 
|Total depreciation, amortization and write-downs       |  |                   | 14,168 |  |      |  | 12,131 | 
|                                                       |  |                   |        |  |      | 

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Specification of depreciation of property, plant and
equipment and amortization of intangible assets (excluding
goodwill) in 2004 and 2005:


|                          |  |                   |       |  |            |  |           |           |  |  |            |  |  |         |       |  |  |  |    | 
|------------------------- |  | ----------------- | ----- |  | ---------- |  | --------- | --------- |  |  | ---------- |  |  | ------- | ----- |  |  |  | -- | 
|                          |  | 2004              |       |  | 2005       | 
|                          |  |                   |       |  |            | 
|                          |  | Property,         |       |  |            |  | Property, |           |  | 
|                          |  | plant and         |       |  | Intangible |  |           | plant and |  |  | Intangible |  |  | Prepaid |      
|                          |  | equipment         |       |  | assets     |  |           | equipment |  |  | assets     |  |  | leases  |      
|                          |  |                   |       |  |            |  |           |           |  |  |            |  |  |         |      
|                          |  | (NOK in millions) |      
|Telenor Mobil  Norway    |  |                   | 781   |  |            |  | 282       |           |  |  | 661        |  |  |         | 228   |  |  |  |   | 
|Sonofon  Denmark         |  |                   | 340   |  |            |  | 850       |           |  |  | 416        |  |  |         | 869   |  |  |  |   | 
|Kyivstar  Ukraine        |  |                   | 301   |  |            |  | 255       |           |  |  | 869        |  |  |         | 340   |  |  |  |   | 
|Pannon GSM  Hungary      |  |                   | 689   |  |            |  | 605       |           |  |  | 594        |  |  |         | 577   |  |  |  |   | 
|DiGi.Com  Malaysia       |  |                   | 779   |  |            |  | 123       |           |  |  | 912        |  |  |         | 127   |  |  |  |   | 
|GrameenPhone  Bangladesh |  |                   | 205   |  |            |  | 11        |           |  |  | 410        |  |  |         | 29    |  |  |  |   | 
|Other mobile operations   |  |                   | 32    |  |            |  | 83        |           |  |  | 213        |  |  |         | 398   |  |  |  |   | 
|Fixed                     |  |                   | 3,173 |  |            |  | 399       |           |  |  | 2,689      |  |  |         | 494   |  |  |  | 54 | 
|Broadcast                 |  |                   | 605   |  |            |  | 99        |           |  |  | 486        |  |  |         | 68    |  |  |  |   | 
|Other operations          |  |                   | 832   |  |            |  | 193       |           |  |  | 833        |  |  |         | 277   |  |  |  |   | 
|                          |  |                   |       |  |            |  |           |           |  |  |            |  |  |         |      
|Total                     |  |                   | 7,737 |  |            |  | 2,900     |           |  |  | 8,083      |  |  |         | 3,407 |  |  |  | 54 | 
|                          |  |                   |       |  |            |  |           |           |  |  |            |  |  |         |      

Specification of write-downs of property, plant and
equipment, goodwill and other intangible assets in 2004 and
2005:


|                          |  |                   |     |  |          |  |            |        |  |           |           |  |  |          |            |   |        |  |     |   |  |  |    | 
|------------------------- |  | ----------------- | --- |  | -------- |  | ---------- | ------ |  | --------- | --------- |  |  | -------- | ---------- | - | ------ |  | --- | - |  |  | -- | 
|                          |  | 2004              |     |  | 2005     | 
|                          |  |                   |     |  |          | 
|                          |  | Property,         |     |  |          |  | Other      |        |  | Property, |           |  |  |          | Other      |  
|                          |  | plant and         |     |  |          |  | intangible |        |  | plant and |           |  |  |          | intangible |  
|                          |  | equipment         |     |  | Goodwill |  |            | assets |  |           | equipment |  |  | Goodwill |            |   | assets | 
|                          |  |                   |     |  |          |  |            |        |  |           |           |  |  |          |            |   |        | 
|                          |  | (NOK in millions) |    
|Telenor Mobil  Norway    |  |                   | 5   |  |          |  |           |        |  |           | 9         |  |  |          | 14         |   |        |  | 2   |   |  |  |   | 
|Sonofon  Denmark         |  |                   | 208 |  |          |  | 3,074      |        |  |           | 8         |  |  |          |           |   |        |  |    |   |  |  |   | 
|Kyivstar  Ukraine        |  |                   |    |  |          |  |           |        |  |           |          |  |  |          | 15         |   |        |  |    |   |  |  |   | 
|Pannon GSM  Hungary      |  |                   | 21  |  |          |  |           |        |  |           |          |  |  |          | 6          |   |        |  |    |   |  |  | 1  | 
|DiGi.Com  Malaysia       |  |                   |    |  |          |  |           |        |  |           |          |  |  |          | 5          |   |        |  |    |   |  |  |   | 
|GrameenPhone  Bangladesh |  |                   | 2   |  |          |  |           |        |  |           |          |  |  |          |           |   |        |  |    |   |  |  |   | 
|Other mobile operations   |  |                   | 15  |  |          |  |           |        |  |           | 61        |  |  |          |           |   |        |  |    |   |  |  |   | 
|Fixed                     |  |                   | 13  |  |          |  | 27         |        |  |           |          |  |  |          | 571        |   |        |  | (36 | ) |  |  | 52 | 
|Broadcast                 |  |                   | 13  |  |          |  | 25         |        |  |           | 7         |  |  |          | (128       | ) |        |  | 75  |   |  |  |   | 
|Other operations          |  |                   | 5   |  |          |  | 3          |        |  |           | 35        |  |  |          | 5          |   |        |  | 5   |   |  |  |   | 
|                          |  |                   |     |  |          |  |            |        |  |           |           |  |  |          |            |   |        | 
|Total                     |  |                   | 282 |  |          |  | 3,129      |        |  |           | 120       |  |  |          | 488        |   |        |  | 46  |   |  |  | 53 | 
|                          |  |                   |     |  |          |  |            |        |  |           |           |  |  |          |            |   |        | 





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Operating Profit and EBITDA




|                                                                                                        |  |                   |        |   |      |  |        |  
|------------------------------------------------------------------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                                                                                                        |  | 2004              |        |   | 2005 | 
|                                                                                                        |  |                   |        |   |      | 
|                                                                                                        |  | (NOK in millions) |       
|Operating profit                                                                                        |  |                   | 7,367  |   |      |  | 11,705 |  
|Of which:                                                                                               |  |                   |        |   |      |  |        |  
|Gains on disposal of fixed assets and operations(1)                                                     |  |                   | 562    |   |      |  | 320    |  
|Losses on disposal of fixed assets and operations(1)                                                    |  |                   | (74    | ) |      |  | (152   | )
|Expenses for workforce reductions and onerous (loss) contracts(1)                                       |  |                   | (336   | ) |      |  | (410   | )
|Write-downs(2)                                                                                          |  |                   | (3,531 | ) |      |  | (587   | )
|                                                                                                        |  |                   |        |   |      | 
|Total gains, losses, expenses for workforce reductions and
    onerous (loss) contracts and write-downs |  |                   | (3,379 | ) |      |  | (829   | )
|                                                                                                        |  |                   |        |   |      | 






|    |                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For a discussion of our gains and losses on disposal of fixed
    assets and operations and expenses for workforce reductions and
    onerous (loss) contracts, you should read
     Other (income) and expenses.
|   
|(2) | For a discussion of our write-downs, you should read
     Depreciation, amortization and
    write-downs.                                                                                                        



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|                                           |  |                   |        |   |      |  |        |  
|------------------------------------------ |  | ----------------- | ------ | - | ---- |  | ------ | -
|                                           |  | 2004              |        |   | 2005 | 
|                                           |  |                   |        |   |      | 
|                                           |  | (NOK in millions) |       
|Profit from total operations               |  |                   | 7,413  |   |      |  | 9,134  |  
|Profit (loss) from discontinued operations |  |                   |       |   |      |  | (4     | )
|Profit from continuing operations          |  |                   | 7,413  |   |      |  | 9,138  |  
|Taxes                                      |  |                   | (2,461 | ) |      |  | (3,453 | )
|Profit before taxes                        |  |                   | 9,874  |   |      |  | 12,591 |  
|Net financial items                        |  |                   | 1,521  |   |      |  | (347   | )
|Associated companies                       |  |                   | 986    |   |      |  | 1,233  |  
|Depreciation and amortization              |  |                   | 10,637 |   |      |  | 11,544 |  
|Write-downs                                |  |                   | 3,531  |   |      |  | 587    |  
|EBITDA                                     |  |                   | 21,535 |   |      |  | 23,836 |  



Associated Companies


|                                                  |  |           |     |  |      |  |       |  
|------------------------------------------------- |  | --------- | --- |  | ---- |  | ----- | -
|                                                  |  | 2004      |     |  | 2005 | 
|                                                  |  |           |     |  |      | 
|                                                  |  | (NOK in   |    
|                                                  |  | millions) |    
|Telenors share of(1):                            |  |           |     |  |      |  |       |  
|Profit after taxes                                |  |           | 954 |  |      |  | 1,406 |  
|Write-down of Golden Telecom Inc.                 |  |           |    |  |      |  | (172  | )
|Gains (losses) on disposal of ownership interests |  |           | 32  |  |      |  | (1    | )
|                                                  |  |           |     |  |      | 
|Net result from associated companies              |  |           | 986 |  |      |  | 1,233 |  
|                                                  |  |           |     |  |      | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | For certain associated companies, financial statements as of the
    Groups balance sheet date are not available. In such
    instances, the most recent financial statements (as of a date
    not more than three months prior to the Groups balance
    sheet date) are used, and estimates for the last period are made
    based on publicly available information. Actual figures may
    deviate from the preliminary figures. The consolidated

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| |                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | income statement contains only the line Net result from
    associated companies. Our share of the other items shown
    in the table is not specified in our consolidated financial
    statements, but this information is set forth in note 18 to
    our consolidated financial statements.









Financial Income and Expenses


|                                                               |  |                   |        |   |      |  |        |  
|-------------------------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                                                               |  | 2004              |        |   | 2005 | 
|                                                               |  |                   |        |   |      | 
|                                                               |  | (NOK in millions) |       
|Interest income on liquid assets                               |  |                   | 383    |   |      |  | 287    |  
|Other financial income                                         |  |                   | 113    |   |      |  | 160    |  
|Total financial income                                         |  |                   | 496    |   |      |  | 447    |  
|Interest expenses on interest-bearing liabilities              |  |                   | (1,582 | ) |      |  | (1,665 | )
|Other financial expenses                                       |  |                   | (96    | ) |      |  | (120   | )
|Capitalized interest                                           |  |                   | 117    |   |      |  | 146    |  
|Total financial expenses                                       |  |                   | (1,561 | ) |      |  | (1,639 | )
|Net foreign currency (loss)                                    |  |                   | (87    | ) |      |  | 84     |  
|Total change in fair value of financial instruments(1)         |  |                   |       |   |      |  | 243    |  
|Gains on disposal of financial assets                          |  |                   | 2,652  |   |      |  | 521    |  
|Losses on disposal of financial assets                         |  |                   | (17    | ) |      |  | (2     | )
|Write-downs and reversal of write-downs of financial assets(2) |  |                   | 38     |   |      |  | (1     | )
|Net gains (losses and write-downs) of financial assets         |  |                   | 2,673  |   |      |  | 518    |  
|Net financial items                                            |  |                   | 1,521  |   |      |  | (347   | )






|    |                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As of January 1, 2005 Telenor implemented IAS 39, see
    note 37. The comparative figures for 2004 are not restated
    to the principles in IAS 39.                                                                   
|   
|(2) | As from January 1, 2005, impairment losses recognised in
    the income statement for an investment in an equity instrument
    classified as available for sale shall not be reversed through
    the income statement.





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Income Taxes




|                                                                                                       |  |           |       |   |      |  |       |  
|------------------------------------------------------------------------------------------------------ |  | --------- | ----- | - | ---- |  | ----- | -
|                                                                                                       |  | 2004      |       |   | 2005 | 
|                                                                                                       |  |           |       |   |      | 
|                                                                                                       |  | (NOK in   |      
|                                                                                                       |  | millions) |      
|Expected income taxes according to corporate income tax rate in
    Norway (28%)                       |  |           | 2,765 |   |      |  | 3,525 |  
|Tax rates outside Norway different from 28%                                                            |  |           | (34   | ) |      |  | (81   | )
|Associated companies                                                                                   |  |           | (267  | ) |      |  | (350  | )
|Net loss in subsidiaries outside Norway for which deferred tax
    assets have not been established    |  |           | 181   |   |      |  | 618   |  
|Previously not recognized tax income in business combinations                                          |  |           | (30   | ) |      |  | (162  | )
|Non-taxable income                                                                                     |  |           | (102  | ) |      |  | (128  | )
|Non-deductible expenses                                                                                |  |           | 195   |   |      |  | 265   |  
|Write-downs of goodwill that are not tax deductible                                                    |  |           | 842   |   |      |  | 12    |  
|Other deferred tax assets not recognized previously                                                    |  |           | (461  | ) |      |  | (18   | )
|Non-taxable gain on sale of shares                                                                     |  |           | (152  | ) |      |  | (30   | )
|Changes in tax law  previously recognized tax assets
    not realized                                 |  |           | 257   |   |      |  |      |  
|Deferred taxes on retained earnings in subsidiaries and
    associated companies                       |  |           | (375  | ) |      |  | 292   |  
|Other tax assets not recognized current year                                                           |  |           | 39    |   |      |  | 16    |  
|Previously recognized tax assets  not realized or
    written-down (valuation allowance) current year |  |           | 27    |   |      |  | 6     |  
|Conversion of inter-company debt                                                                       |  |           |      |   |      |  | (249  | )
|Liquidation of Dansk Mobil Holding AS                                                                  |  |           | (438  | ) |      |  | 438   |  
|Sale of Telenor Business Solutions AS                                                                  |  |           |      |   |      |  | (701  | )
|Other                                                                                                  |  |           | 14    |   |      |  |      |  
|Income tax expense (income)                                                                            |  |           | 2,461 |   |      |  | 3,453 |  
|Effective tax rate in %                                                                                |  |           | 24.9  |   |      |  | 27.4  |  





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Minority Interests




|                         |  |                   |           |          |            |  |          |            |  |           |               |  |           |               |       |           |               |  |       |  |  |  |       | 
|------------------------ |  | ----------------- | --------- | -------- | ---------- |  | -------- | ---------- |  | --------- | ------------- |  | --------- | ------------- | ----- | --------- | ------------- |  | ----- |  |  |  | ----- | 
|                         |  |                   |           |          |            |  |          | Minority   |  |           | Minority      |  |           | Minority      |      
|                         |  |                   |           | Minority |            |  | Minority |            |  | Interests |               |  | Interests |               |       | Interests |              
|                         |  | Minority          |           |          | part of    |  |          | part of    |  |           | in the        |  |           | in the        |       |           | in the        | 
|                         |  | share in %        |           |          | net income |  |          | net income |  |           | balance sheet |  |           | balance sheet |       |           | balance sheet | 
|                         |  | 31.12.05          |           |          | 2005       |  |          | 2004       |  |           | 31.12.05      |  |           | 1.1.05        |       |           | 31.12.04      | 
|                         |  |                   |           |          |            |  |          |            |  |           |               |  |           |               |       |           |               | 
|                         |  | (NOK in millions) |          
|Kyvistar GSM JSC         |  |                   | 43.5      |          |            |  | 827      |            |  |           | 588           |  |           |               | 2,348 |           |               |  | 1,255 |  |  |  | 1,255 | 
|DiGi.Com bhd             |  |                   | 39.0      |          |            |  | 288      |            |  |           | 187           |  |           |               | 1,645 |           |               |  | 1,190 |  |  |  | 1,190 | 
|GrameenPhone Ltd.        |  |                   | 38.0      |          |            |  | 219      |            |  |           | 410           |  |           |               | 648   |           |               |  | 528   |  |  |  | 528   | 
|DTAC/ UCOM               |  |                   | 25.0/13.8 |          |            |  | 42       |            |  |           |              |  |           |               | 1,345 |           |               |  |      |  |  |  |      | 
|EDB Business Partner ASA |  |                   | 48.2      |          |            |  | 89       |            |  |           | 111           |  |           |               | 856   |           |               |  | 788   |  |  |  | 788   | 
|Telenor Venture IV AS    |  |                   | 49.0      |          |            |  | 5        |            |  |           |              |  |           |               | 155   |           |               |  | 60    |  |  |  | 52    | 
|Other                    |  |                   |          |          |            |  | 18       |            |  |           | 24            |  |           |               | 137   |           |               |  | 133   |  |  |  | 133   | 
|                         |  |                   |           |          |            |  |          |            |  |           |               |  |           |               |       |           |               | 
|Total                    |  |                   |           |          |            |  | 1,488    |            |  |           | 1,320         |  |           |               | 7,134 |           |               |  | 3,954 |  |  |  | 3,946 | 
|                         |  |                   |           |          |            |  |          |            |  |           |               |  |           |               |       |           |               | 






|    |                                                                                                  
|--- | -------------------------------------------------------------------------------------------------
|(1) | The change from January 1, 2004 to December 31, 2005
    was due to the implementation of IAS 39.

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RESULTS OF OPERATIONS




|                          |  |                   |        |          |          |  |        |       |          |  |          |   |  |  |        |  
|------------------------- |  | ----------------- | ------ | -------- | -------- |  | ------ | ----- | -------- |  | -------- | - |  |  | ------ | -
|                          |  | 2004              |        |          | 2005     | 
|                          |  |                   |        |          |          | 
|                          |  |                   |        | Of Which |          |  |        |       | Of Which | 
|                          |  | Total             |        |          | External |  |        | Total |          |  | External |  
|                          |  |                   |        |          |          |  |        |       |          |  |          |  
|                          |  | (NOK in millions) |       
|Revenues                  |  |                   |        |          |          |  |        |       |          |  |          |   |  |  |        |  
|Telenor Mobil  Norway    |  |                   | 11,730 |          |          |  | 10,504 |       |          |  | 12,243   |   |  |  | 11,072 |  
|Sonofon  Denmark         |  |                   | 4,404  |          |          |  | 4,351  |       |          |  | 5,191    |   |  |  | 5,059  |  
|Kyivstar  Ukraine        |  |                   | 4,219  |          |          |  | 4,217  |       |          |  | 7,272    |   |  |  | 7,266  |  
|Pannon GSM  Hungary      |  |                   | 5,907  |          |          |  | 5,901  |       |          |  | 6,061    |   |  |  | 6,051  |  
|DiGi.Com  Malaysia       |  |                   | 3,946  |          |          |  | 3,943  |       |          |  | 4,932    |   |  |  | 4,928  |  
|GrameenPhone  Bangladesh |  |                   | 2,186  |          |          |  | 2,186  |       |          |  | 2,970    |   |  |  | 2,969  |  
|Other mobile operations   |  |                   | 423    |          |          |  | 335    |       |          |  | 2,219    |   |  |  | 2,076  |  
|Fixed                     |  |                   | 19,256 |          |          |  | 17,433 |       |          |  | 19,313   |   |  |  | 17,140 |  
|Broadcast                 |  |                   | 5,346  |          |          |  | 5,211  |       |          |  | 5,649    |   |  |  | 5,518  |  
|Other operations          |  |                   | 9,540  |          |          |  | 6,611  |       |          |  | 9,967    |   |  |  | 7,060  |  
|Eliminations              |  |                   | (6,366 | )        |          |  | (101   | )     |          |  | (6,890   | ) |  |  | (212   | )
|                          |  |                   |        |          |          |  |        |       |          |  |          |  
|Total revenues            |  |                   | 60,591 |          |          |  | 60,591 |       |          |  | 68,927   |   |  |  | 68,927 |  
|                          |  |                   |        |          |          |  |        |       |          |  |          |  

|                          |  |                   |        |   |      |  |        |  
|------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                          |  | 2004              |        |   | 2005 | 
|                          |  |                   |        |   |      | 
|                          |  | (NOK in millions) |       
|Operating profit (loss)   |  |                   |        |   |      |  |        |  
|Telenor Mobil  Norway    |  |                   | 3,228  |   |      |  | 3,566  |  
|Sonofon  Denmark         |  |                   | (3,799 | ) |      |  | (109   | )
|Kyivstar  Ukraine        |  |                   | 2,026  |   |      |  | 2,826  |  
|Pannon GSM  Hungary      |  |                   | 777    |   |      |  | 1,007  |  
|DiGi.Com  Malaysia       |  |                   | 831    |   |      |  | 1,099  |  
|GrameenPhone  Bangladesh |  |                   | 1,095  |   |      |  | 1,120  |  
|Other mobile operations   |  |                   | (903   | ) |      |  | (954   | )
|Fixed                     |  |                   | 2,725  |   |      |  | 2,062  |  
|Broadcast                 |  |                   | 750    |   |      |  | 1,015  |  
|Other operations          |  |                   | 96     |   |      |  | 48     |  
|Eliminations              |  |                   | 541    |   |      |  | 25     |  
|                          |  |                   |        |   |      | 
|Total operating profit    |  |                   | 7,367  |   |      |  | 11,705 |  
|                          |  |                   |        |   |      | 

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|                          |  |                   |        |   |      |  |        |  
|------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                          |  | 2004              |        |   | 2005 | 
|EBITDA                    |  |                   |        |   |      | 
|                          |  | (NOK in millions) |       
|Telenor Mobil  Norway    |  |                   | 4,305  |   |      |  | 4,471  |  
|Sonofon  Denmark         |  |                   | 681    |   |      |  | 1,176  |  
|Kyivstar  Ukraine        |  |                   | 2,581  |   |      |  | 4,050  |  
|Pannon GSM  Hungary      |  |                   | 2,093  |   |      |  | 2,185  |  
|DiGi.Com  Malaysia       |  |                   | 1,732  |   |      |  | 2,142  |  
|GrameenPhone  Bangladesh |  |                   | 1,313  |   |      |  | 1,559  |  
|Other mobile operations   |  |                   | (712   | ) |      |  | (343   | )
|Fixed                     |  |                   | 6,338  |   |      |  | 5,885  |  
|Broadcast                 |  |                   | 1,498  |   |      |  | 1,516  |  
|Other operations          |  |                   | 1,114  |   |      |  | 1,091  |  
|Eliminations              |  |                   | 592    |   |      |  | 104    |  
|                          |  |                   |        |   |      | 
|Total EBITDA(1)           |  |                   | 21,535 |   |      |  | 23,836 |  
|                          |  |                   |        |   |      | 






|    |                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | You should read Results of Operations 
    Group  Operating Profit and EBITDA for the
    reconciliation of EBITDA to profit from total operations for the
    group.

93



---



##### Table of Contents



Telenor Mobil  Norway


|                                                |  |                   |        |   |      |  |        |  
|----------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                                                |  | 2004              |        |   | 2005 | 
|                                                |  |                   |        |   |      | 
|                                                |  | (NOK in millions) |       
|Subscription and traffic                        |  |                   | 7,879  |   |      |  | 8,148  |  
|Interconnection revenues                        |  |                   | 1,613  |   |      |  | 1,754  |  
|Mobile revenues from companys subscriptions    |  |                   | 9,492  |   |      |  | 9,902  |  
|                                                |  |                   |        |   |      | 
|Other mobile revenues                           |  |                   | 1,513  |   |      |  | 1,825  |  
|Total mobile revenues                           |  |                   | 11,005 |   |      |  | 11,727 |  
|                                                |  |                   |        |   |      | 
|Non-mobile revenues                             |  |                   | 725    |   |      |  | 516    |  
|                                                |  |                   |        |   |      | 
|Total revenues(1)                               |  |                   | 11,730 |   |      |  | 12,243 |  
|                                                |  |                   |        |   |      | 
|External costs of materials and traffic charges |  |                   | 2,291  |   |      |  | 2,272  |  
|Internal costs of materials and traffic charges |  |                   | 868    |   |      |  | 961    |  
|Total costs of materials and traffic charges    |  |                   | 3,159  |   |      |  | 3,233  |  
|Own work capitalized                            |  |                   | (23    | ) |      |  | (23    | )
|Salaries and personnel costs                    |  |                   | 866    |   |      |  | 838    |  
|External other operating expenses               |  |                   | 2,560  |   |      |  | 2,821  |  
|Internal other operating expenses               |  |                   | 839    |   |      |  | 889    |  
|Other (income) and expenses                     |  |                   | 24     |   |      |  | 14     |  
|                                                |  |                   |        |   |      | 
|Total operating expenses                        |  |                   | 7,425  |   |      |  | 7,772  |  
|                                                |  |                   |        |   |      | 
|EBITDA(3)                                       |  |                   | 4,305  |   |      |  | 4,471  |  
|                                                |  |                   |        |   |      | 
|Depreciation and amortization(2)                |  |                   | 1,062  |   |      |  | 889    |  
|Write-downs                                     |  |                   | 15     |   |      |  | 16     |  
|                                                |  |                   |        |   |      | 
|Operating profit                                |  |                   | 3,228  |   |      |  | 3,566  |  
|                                                |  |                   |        |   |      | 
|EBITDA/ Total revenues (%)                      |  |                   | 36.7   |   |      |  | 36.5   |  
|Operating profit/ Total revenues (%)            |  |                   | 27.5   |   |      |  | 29.1   |  
|Capital expenditure                             |  |                   | 973    |   |      |  | 1,218  |  
|Investments in businesses                       |  |                   | 52     |   |      |  |       |  
|No. of man-years (end of period)                |  |                   | 1,413  |   |      |  | 1,378  |  
|No. of subscriptions (in thousands)             |  |                   | 2,645  |   |      |  | 2,731  |  
|                                                |  |                   |        |   |      |  |        |  




|                                                                                                                                                                                                                                  |  |  |       |  |  |  |       | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ----- |  |  |  | ----- | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 1,226 |  |  |  | 1,171 | 
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 1     |  |  |  | 4     | 
|(3)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of its
    operating segments.

Operating profit and EBITDA  Telenor
Mobil  Norway




94



---



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Revenues  Telenor Mobil 
Norway












Operating expenses  Telenor Mobil 
Norway












Capital expenditure  Telenor Mobil 
Norway




95



---



##### Table of Contents



Sonofon  Denmark


|                                                     |  |                   |        |   |      |  |       |  
|---------------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ----- | -
|                                                     |  | 2004              |        |   | 2005 | 
|                                                     |  |                   |        |   |      | 
|                                                     |  | (NOK in millions) |       
|Subscription and traffic                             |  |                   | 1,813  |   |      |  | 2,361 |  
|Interconnection revenues                             |  |                   | 986    |   |      |  | 1,300 |  
|Mobile revenues from companys subscriptions         |  |                   | 2,799  |   |      |  | 3,661 |  
|                                                     |  |                   |        |   |      | 
|Other mobile revenues                                |  |                   | 571    |   |      |  | 638   |  
|Total mobile revenues                                |  |                   | 3,370  |   |      |  | 4,299 |  
|                                                     |  |                   |        |   |      | 
|Non-mobile revenues                                  |  |                   | 1,034  |   |      |  | 892   |  
|                                                     |  |                   |        |   |      | 
|Total revenues(1)                                    |  |                   | 4,404  |   |      |  | 5,191 |  
|                                                     |  |                   |        |   |      | 
|External costs of materials and traffic charges      |  |                   | 2,095  |   |      |  | 2,294 |  
|Internal costs of materials and traffic charges      |  |                   | 34     |   |      |  | 101   |  
|Total costs of materials and traffic charges         |  |                   | 2,129  |   |      |  | 2,395 |  
|Own work capitalized                                 |  |                   | (30    | ) |      |  | (21   | )
|Salaries and personnel costs                         |  |                   | 589    |   |      |  | 581   |  
|External other operating expenses                    |  |                   | 1,005  |   |      |  | 966   |  
|Internal other operating expenses                    |  |                   | 2      |   |      |  | 83    |  
|Gains on disposal of fixed assets and operations     |  |                   |       |   |      |  | (1    | )
|Losses on disposal of fixed assets and operations    |  |                   |       |   |      |  |      |  
|Expenses for workforce reductions and loss contracts |  |                   | 28     |   |      |  | 12    |  
|                                                     |  |                   |        |   |      | 
|Total operating expenses                             |  |                   | 3,723  |   |      |  | 4,015 |  
|                                                     |  |                   |        |   |      | 
|EBITDA(4)                                            |  |                   | 681    |   |      |  | 1,176 |  
|                                                     |  |                   |        |   |      | 
|Depreciation and amortization(2)                     |  |                   | 1,190  |   |      |  | 1,285 |  
|Write-downs(3)                                       |  |                   | 3,290  |   |      |  |      |  
|                                                     |  |                   |        |   |      | 
|Operating loss                                       |  |                   | (3,799 | ) |      |  | (109  | )
|                                                     |  |                   |        |   |      | 
|EBITDA/ Total revenues (%)                           |  |                   | 15.5   |   |      |  | 22.7  |  
|Operating profit/ Total revenues (%)                 |  |                   | nm     |   |      |  | nm    |  
|Capital expenditure                                  |  |                   | 388    |   |      |  | 1,062 |  
|Investments in businesses                            |  |                   | 3,786  |   |      |  | 4     |  
|No. of man-years (end of period)                     |  |                   | 1,343  |   |      |  | 1,206 |  
|No. of subscriptions (in thousands)                  |  |                   | 1,275  |   |      |  | 1,284 |  
|                                                     |  |                   |        |   |      |  |       |  




|                                                                                                                                                                                                                                  |  |  |       |  |  |  |     | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ----- |  |  |  | --- | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 53    |  |  |  | 132 | 
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 551   |  |  |  | 555 | 
|(3)  Of which write-downs of Telenors net excess
    values                                                                                                                                                                      |  |  | 3,074 |  |  |  |    | 
|(4)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of its
    operating segments.



96



---



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Operating loss and EBITDA  Sonofon




Revenues  Sonofon










Operating expenses  Sonofon






Capital expenditure  Sonofon




97



---



##### Table of Contents



Kyivstar  Ukraine


|                                                |  |                   |       |  |      |  |        |  
|----------------------------------------------- |  | ----------------- | ----- |  | ---- |  | ------ | -
|                                                |  | 2004              |       |  | 2005 | 
|                                                |  |                   |       |  |      | 
|                                                |  | (NOK in millions) |      
|Subscription and traffic                        |  |                   | 2,961 |  |      |  | 5,122  |  
|Interconnection revenues                        |  |                   | 1,068 |  |      |  | 1,888  |  
|Mobile revenues from companys subscriptions    |  |                   | 4,029 |  |      |  | 7,010  |  
|                                                |  |                   |       |  |      | 
|Other mobile revenues                           |  |                   | 122   |  |      |  | 158    |  
|Total mobile revenues                           |  |                   | 4,151 |  |      |  | 7,168  |  
|                                                |  |                   |       |  |      | 
|Non-mobile revenues                             |  |                   | 68    |  |      |  | 104    |  
|                                                |  |                   |       |  |      | 
|Total revenues(1)                               |  |                   | 4,219 |  |      |  | 7,272  |  
|                                                |  |                   |       |  |      | 
|External costs of materials and traffic charges |  |                   | 646   |  |      |  | 1,075  |  
|Internal costs of materials and traffic charges |  |                   | 5     |  |      |  | 6      |  
|Total costs of materials and traffic charges    |  |                   | 651   |  |      |  | 1,081  |  
|Own work capitalized                            |  |                   |      |  |      |  | (9     | )
|Salaries and personnel costs                    |  |                   | 183   |  |      |  | 395    |  
|External other operating expenses               |  |                   | 793   |  |      |  | 1,737  |  
|Internal other operating expenses               |  |                   | 11    |  |      |  | 18     |  
|Other (income) and expenses                     |  |                   |      |  |      |  |       |  
|                                                |  |                   |       |  |      | 
|Total operating expenses                        |  |                   | 1,638 |  |      |  | 3,222  |  
|                                                |  |                   |       |  |      | 
|EBITDA(3)                                       |  |                   | 2,581 |  |      |  | 4,050  |  
|                                                |  |                   |       |  |      | 
|Depreciation and amortization(2)                |  |                   | 555   |  |      |  | 1,209  |  
|Write-downs                                     |  |                   |      |  |      |  | 15     |  
|                                                |  |                   |       |  |      | 
|Operating profit                                |  |                   | 2,026 |  |      |  | 2,826  |  
|                                                |  |                   |       |  |      | 
|EBITDA/ Total revenues (%)                      |  |                   | 61.2  |  |      |  | 55.7   |  
|Operating profit/ Total revenues (%)            |  |                   | 48.0  |  |      |  | 38.9   |  
|Capital expenditure                             |  |                   | 2,608 |  |      |  | 3,650  |  
|Investments in businesses                       |  |                   | 35    |  |      |  |       |  
|No. of man-years (end of period)                |  |                   | 1,880 |  |      |  | 2,685  |  
|No. of subscriptions (in thousands)             |  |                   | 6,252 |  |      |  | 13,925 |  
|                                                |  |                   |       |  |      |  |        |  




|                                                                                                                                                                                                                                  |  |  |    |  |  |  |    | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | -- |  |  |  | -- | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 2  |  |  |  | 6  | 
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 93 |  |  |  | 93 | 
|(3)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of our
    operating segments.



Operating profit and EBITDA  Kyivstar




98



---



##### Table of Contents





Revenues  Kyivstar








Operating expenses  Kyivstar








Capital expenditure  Kyivstar




99



---



##### Table of Contents



Pannon GSM  Hungary


|                                                |  |           |       |  |      |  |       | 
|----------------------------------------------- |  | --------- | ----- |  | ---- |  | ----- | 
|                                                |  | 2004      |       |  | 2005 | 
|                                                |  |           |       |  |      | 
|                                                |  | (NOK in   |      
|                                                |  | millions) |      
|Subscription and traffic                        |  |           | 3,669 |  |      |  | 3,768 | 
|Interconnection revenues                        |  |           | 1,731 |  |      |  | 1,735 | 
|Mobile revenues from companys subscriptions    |  |           | 5,400 |  |      |  | 5,503 | 
|                                                |  |           |       |  |      | 
|Other mobile revenues                           |  |           | 142   |  |      |  | 144   | 
|Total mobile revenues                           |  |           | 5,542 |  |      |  | 5,647 | 
|                                                |  |           |       |  |      | 
|Non-mobile revenues                             |  |           | 365   |  |      |  | 414   | 
|                                                |  |           |       |  |      | 
|Total revenues(1)                               |  |           | 5,907 |  |      |  | 6,061 | 
|                                                |  |           |       |  |      | 
|External costs of materials and traffic charges |  |           | 2,243 |  |      |  | 2,256 | 
|Internal costs of materials and traffic charges |  |           | 5     |  |      |  | 7     | 
|Total costs of materials and traffic charges    |  |           | 2,248 |  |      |  | 2,263 | 
|Own work capitalized                            |  |           |      |  |      |  |      | 
|Salaries and personnel costs                    |  |           | 378   |  |      |  | 373   | 
|Other (income) and expenses                     |  |           | 1,152 |  |      |  | 1,184 | 
|Internal other operating expenses               |  |           | 22    |  |      |  | 37    | 
|Other (income) and expenses                     |  |           | 14    |  |      |  | 19    | 
|                                                |  |           |       |  |      | 
|Total operating expenses                        |  |           | 3,814 |  |      |  | 3,876 | 
|                                                |  |           |       |  |      | 
|EBITDA(3)                                       |  |           | 2,093 |  |      |  | 2,185 | 
|                                                |  |           |       |  |      | 
|Depreciation and amortization(2)                |  |           | 1,295 |  |      |  | 1,171 | 
|Write-downs                                     |  |           | 21    |  |      |  | 7     | 
|                                                |  |           |       |  |      | 
|Operating profit                                |  |           | 777   |  |      |  | 1,007 | 
|                                                |  |           |       |  |      | 
|EBITDA/ Total revenues (%)                      |  |           | 35.4  |  |      |  | 36.1  | 
|Operating profit/ Total revenues (%)            |  |           | 13.2  |  |      |  | 16.6  | 
|Capital expenditure                             |  |           | 1,166 |  |      |  | 763   | 
|No. of man-years (end of period)                |  |           | 1,384 |  |      |  | 1,319 | 
|No. of subscriptions (in thousands)             |  |           | 2,770 |  |      |  | 2,929 | 
|                                                |  |           |       |  |      |  |       | 




|                                                                                                                                                                                                                                  |  |  |     |  |  |  |     | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | --- |  |  |  | --- | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 6   |  |  |  | 10  | 
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 358 |  |  |  | 345 | 
|(3)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of our
    operating segments.



Operating profit and EBITDA  Pannon GSM




100



---



##### Table of Contents



Revenues  Pannon GSM






Operating expenses  Pannon GSM




Capital expenditure  Pannon GSM




101



---



##### Table of Contents



DiGi.Com  Malaysia


|                                                |  |           |       |   |      |  |       |  
|----------------------------------------------- |  | --------- | ----- | - | ---- |  | ----- | -
|                                                |  | 2004      |       |   | 2005 | 
|                                                |  |           |       |   |      | 
|                                                |  | (NOK in   |      
|                                                |  | millions) |      
|Subscription and traffic                        |  |           | 2,794 |   |      |  | 3,949 |  
|Interconnection revenues                        |  |           | 571   |   |      |  | 594   |  
|Mobile revenues from companys subscriptions    |  |           | 3,365 |   |      |  | 4,543 |  
|                                                |  |           |       |   |      | 
|Other mobile revenues                           |  |           | 65    |   |      |  | 65    |  
|Total mobile revenues                           |  |           | 3,430 |   |      |  | 4,608 |  
|                                                |  |           |       |   |      | 
|Non-mobile revenues                             |  |           | 516   |   |      |  | 324   |  
|                                                |  |           |       |   |      | 
|Total revenues(1)                               |  |           | 3,946 |   |      |  | 4,932 |  
|                                                |  |           |       |   |      | 
|External costs of materials and traffic charges |  |           | 898   |   |      |  | 1,118 |  
|Internal costs of materials and traffic charges |  |           | 2     |   |      |  | 6     |  
|Total costs of materials and traffic charges    |  |           | 900   |   |      |  | 1,124 |  
|Own work capitalized                            |  |           | (6    | ) |      |  | (8    | )
|Salaries and personnel costs                    |  |           | 212   |   |      |  | 245   |  
|External other operating expenses               |  |           | 1,095 |   |      |  | 1,410 |  
|Internal other operating expenses               |  |           | 13    |   |      |  | 14    |  
|Other (income) and expenses                     |  |           |      |   |      |  | 5     |  
|                                                |  |           |       |   |      | 
|Total operating expenses                        |  |           | 2,214 |   |      |  | 2,790 |  
|                                                |  |           |       |   |      | 
|EBITDA                                          |  |           | 1,732 |   |      |  | 2,142 |  
|                                                |  |           |       |   |      | 
|Depreciation and amortization(2)                |  |           | 901   |   |      |  | 1,038 |  
|Write-downs                                     |  |           |      |   |      |  | 5     |  
|                                                |  |           |       |   |      | 
|Operating profit                                |  |           | 831   |   |      |  | 1,099 |  
|                                                |  |           |       |   |      | 
|EBITDA/ Total revenues (%)                      |  |           | 43.9  |   |      |  | 43.4  |  
|Operating profit/ Total revenues (%)            |  |           | 21.1  |   |      |  | 22.3  |  
|Capital expenditure                             |  |           | 920   |   |      |  | 1,170 |  
|No. of man-years (end of period)                |  |           | 1,549 |   |      |  | 1,603 |  
|No. of subscriptions (in thousands)             |  |           | 3,239 |   |      |  | 4,795 |  
|                                                |  |           |       |   |      |  |       |  




|                                                                                                                                                                                                                                  |  |  |    |  |  |  |    | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | -- |  |  |  | -- | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 3  |  |  |  | 4  | 
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 72 |  |  |  | 51 | 
|(3)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of our
    operating segments.



Operating profit and EBITDA  DiGi.Com




102



---



##### Table of Contents





Revenues  DiGi.Com






Operating expenses  DiGi.Com






Capital expenditure  DiGi.Com




103



---



##### Table of Contents



GrameenPhone  Bangladesh


|                                                |  |           |       |  |      |  |       | 
|----------------------------------------------- |  | --------- | ----- |  | ---- |  | ----- | 
|                                                |  | 2004      |       |  | 2005 | 
|                                                |  |           |       |  |      | 
|                                                |  | (NOK in   |      
|                                                |  | millions) |      
|Subscription and traffic                        |  |           | 2,064 |  |      |  | 2,741 | 
|Interconnection revenues                        |  |           | 90    |  |      |  | 188   | 
|Mobile revenues from companys subscriptions    |  |           | 2,154 |  |      |  | 2,929 | 
|                                                |  |           |       |  |      | 
|Other mobile revenues                           |  |           | 24    |  |      |  | 22    | 
|Total mobile revenues                           |  |           | 2,178 |  |      |  | 2,951 | 
|                                                |  |           |       |  |      | 
|Non-mobile revenues                             |  |           | 8     |  |      |  | 19    | 
|                                                |  |           |       |  |      | 
|Total revenues(1)                               |  |           | 2,186 |  |      |  | 2,970 | 
|                                                |  |           |       |  |      | 
|External costs of materials and traffic charges |  |           | 245   |  |      |  | 390   | 
|Internal costs of materials and traffic charges |  |           |      |  |      |  |      | 
|Total costs of materials and traffic charges    |  |           | 245   |  |      |  | 390   | 
|Own work capitalized                            |  |           |      |  |      |  |      | 
|Salaries and personnel costs                    |  |           | 75    |  |      |  | 96    | 
|External other operating expenses               |  |           | 523   |  |      |  | 896   | 
|Internal other operating expenses               |  |           | 22    |  |      |  | 19    | 
|Other (income) and expenses                     |  |           | 8     |  |      |  | 10    | 
|Total operating expenses                        |  |           | 873   |  |      |  | 1,411 | 
|                                                |  |           |       |  |      | 
|EBITDA(2)                                       |  |           | 1,313 |  |      |  | 1,559 | 
|                                                |  |           |       |  |      | 
|Depreciation and amortization                   |  |           | 215   |  |      |  | 439   | 
|Write-downs                                     |  |           | 3     |  |      |  |      | 
|                                                |  |           |       |  |      | 
|Operating profit                                |  |           | 1,095 |  |      |  | 1,120 | 
|                                                |  |           |       |  |      | 
|EBITDA/ Total revenues (%)                      |  |           | 60.1  |  |      |  | 52.5  | 
|Operating profit/ Total revenues (%)            |  |           | 50.1  |  |      |  | 37.7  | 
|Capital expenditure                             |  |           | 1,318 |  |      |  | 2,596 | 
|Investments in businesses                       |  |           | 298   |  |      |  |      | 
|No. of man-years (end of period)                |  |           | 1,147 |  |      |  | 2,731 | 
|No. of subscriptions (in thousands)             |  |           | 2,388 |  |      |  | 5,542 | 
|                                                |  |           |       |  |      |  |       | 




|                                                                                                                                                                                                                                  |  |  |   |  |  |  |   | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | - |  |  |  | - | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  |  |  |  |  | 1 | 
|(2)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of our
    operating segments. |  |  |   |  |  |  |   | 



Operating profit and EBITDA 
GrameenPhone




104



---



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Revenues  GrameenPhone








Operating expenses  GrameenPhone








Capital expenditure  GrameenPhone




Other Mobile Operations


|                          |  |           |       |  |      |  |       | 
|------------------------- |  | --------- | ----- |  | ---- |  | ----- | 
|                          |  | 2004      |       |  | 2005 | 
|                          |  |           |       |  |      | 
|                          |  | (NOK in   |      
|                          |  | millions) |      
|Revenues                  |  |           |       |  |      |  |       | 
|DTAC  Thailand           |  |           |      |  |      |  | 1,191 | 
|Telenor Pakistan          |  |           |      |  |      |  | 265   | 
|ProMonte GSM  Montenegro |  |           | 200   |  |      |  | 519   | 
|Telenor Mobile Sweden     |  |           | 223   |  |      |  | 244   | 
|                          |  |           |       |  |      | 
|Total revenues(1)         |  |           | 423   |  |      |  | 2,219 | 
|                          |  |           |       |  |      | 
|Operating expenses        |  |           |       |  |      |  |       | 
|DTAC  Thailand           |  |           |      |  |      |  | 746   | 
|Telenor Pakistan          |  |           | 78    |  |      |  | 837   | 
|ProMonte GSM  Montenegro |  |           | 109   |  |      |  | 259   | 
|Telenor Mobile Sweden     |  |           | 948   |  |      |  | 720   | 
|                          |  |           |       |  |      | 
|Total operating expenses  |  |           | 1,135 |  |      |  | 2,562 | 
|                          |  |           |       |  |      | 

105



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|                                    |  |           |       |   |      |  |       |  
|----------------------------------- |  | --------- | ----- | - | ---- |  | ----- | -
|                                    |  | 2004      |       |   | 2005 | 
|                                    |  |           |       |   |      | 
|                                    |  | (NOK in   |      
|                                    |  | millions) |      
|EBITDA(3)                           |  |           |       |   |      |  |       |  
|DTAC  Thailand                     |  |           |      |   |      |  | 445   |  
|Telenor Pakistan                    |  |           | (78   | ) |      |  | (572  | )
|ProMonte GSM  Montenegro           |  |           | 91    |   |      |  | 260   |  
|Telenor Mobile Sweden               |  |           | (725  | ) |      |  | (476  | )
|                                    |  |           |       |   |      | 
|Total EBITDA(3)                     |  |           | (712  | ) |      |  | (343  | )
|                                    |  |           |       |   |      | 
|Depreciation and amortization(2)    |  |           | 116   |   |      |  | 611   |  
|Write-downs                         |  |           | 75    |   |      |  |      |  
|                                    |  |           |       |   |      | 
|Operating profit                    |  |           | (903  | ) |      |  | (954  | )
|                                    |  |           |       |   |      | 
|Of which:                           |  |           |       |   |      |  |       |  
|DTAC  Thailand                     |  |           |      |   |      |  | 225   |  
|Telenor Pakistan                    |  |           | (78   | ) |      |  | (798  | )
|ProMonte GSM  Montenegro           |  |           | 24    |   |      |  | 95    |  
|Telenor Mobile Sweden               |  |           | (849  | ) |      |  | (476  | )
|                                    |  |           |       |   |      | 
|Capital expenditure                 |  |           |       |   |      |  |       |  
|DTAC  Thailand                     |  |           |      |   |      |  | 146   |  
|Telenor Pakistan                    |  |           | 1,993 |   |      |  | 1,843 |  
|ProMonte GSM  Montenegro           |  |           | 16    |   |      |  | 38    |  
|Telenor Mobile Sweden               |  |           | 17    |   |      |  |      |  
|                                    |  |           |       |   |      | 
|Total capital expenditure           |  |           | 2,026 |   |      |  | 2,027 |  
|                                    |  |           |       |   |      | 
|Investments in businesses           |  |           | 541   |   |      |  | 2,664 |  
|No. of subscriptions (in thousands) |  |           |       |   |      |  |       |  
|DTAC  Thailand                     |  |           |      |   |      |  | 8,677 |  
|Telenor Pakistan                    |  |           |      |   |      |  | 1,868 |  
|ProMonte GSM                        |  |           | 279   |   |      |  | 310   |  
|Telenor Mobile Sweden               |  |           | 105   |   |      |  | 95    |  
|                                    |  |           |       |   |      | 
|No. of man-years (end of period)    |  |           |       |   |      |  |       |  
|DTAC  Thailand                     |  |           |      |   |      |  | 3,706 |  
|Telenor Pakistan                    |  |           | 222   |   |      |  | 914   |  
|ProMonte GSM                        |  |           | 224   |   |      |  | 215   |  
|Telenor Mobile Sweden               |  |           | 16    |   |      |  | 13    |  
|                                    |  |           |       |   |      |  |       |  




|                                                                                                                                                                                                                                  |  |  |    |  |  |  |     | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | -- |  |  |  | --- | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 88 |  |  |  | 143 | 
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 32 |  |  |  | 115 | 
|(3)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of our
    operating segments.

DTAC  Thailand




106



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Operating profit and EBITDA  DTAC




Revenues  DTAC






Operating expenses  DTAC




Capital expenditure  DTAC




Telenor Pakistan






Operating loss and EBITDA loss  Telenor
Pakistan




Revenues  Telenor Pakistan




107



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##### Table of Contents



Operating expenses  Telenor Pakistan




Capital expenditure  Telenor Pakistan




ProMonte GSM  Montenegro




Operating profit and EBITDA  ProMonte GSM




Revenues  ProMonte GSM




Operating expenses  ProMonte GSM


.


Capital expenditure  ProMonte GSM




108



---



##### Table of Contents



Telenor Mobile Sweden




Operating loss and EBITDA  Telenor Mobile
Sweden






Revenues  Telenor Mobile Sweden




Operating expenses  Telenor Mobile Sweden




109



---



##### Table of Contents



TELENOR FIXED


|                                     |                           |                   |        |     |      |  |        |       | 
|------------------------------------ | ------------------------- | ----------------- | ------ | --- | ---- |  | ------ | ----- | 
|                                     |                           | 2004              |        |     | 2005 | 
|                                     |                           |                   |        |     |      | 
|                                     |                           | (NOK in millions) |       
|Fixed  Norway                       |                           |                   | 17,545 |     |      |  | 16,867 |      
|Fixed  Other operations             |                           |                   | 1,829  |     |      |  | 2,581  |      
|Eliminations                         |                           |                   | (118   | )   |      |  | (135   | )    
|                                     |                           |                   |        |     |      | 
|Total revenues(1)                    |                           |                   | 19,256 |     |      |  | 19,313 |      
|                                     |                           |                   |        |     |      | 
|Total operating expenses             |                           |                   | 12,918 |     |      |  | 13,428 |      
|                                     |                           |                   |        |     |      | 
|EBITDA                               |                           |                   | 6,338  |     |      |  | 5,885  |      
|                                     |                           |                   |        |     |      | 
|Depreciation and amortization(2)     |                           |                   | 3,573  |     |      |  | 3,236  |      
|Write-downs(3)                       |                           |                   | 40     |     |      |  | 587    |      
|                                     |                           |                   |        |     |      | 
|Operating profit                     |                           |                   | 2,725  |     |      |  | 2,062  |      
|                                     |                           |                   |        |     |      | 
|EBITDA/ Total revenues (%)           |                           |                   | 32.9   |     |      |  | 30.5   |      
|Operating profit/ Total revenues (%) |                           |                   | 14.2   |     |      |  | 10.7   |      
|Capital expenditure                  |                           |                   | 1,791  |     |      |  | 2,776  |      
|Investments in businesses            |                           |                   | 105    |     |      |  | 5,816  |      
|No. of man-years (end of period)     |                           |                   | 5,651  |     |      |  | 5,987  |      
|                                     |  of which outside Norway |                   |        | 643 |      |  |        | 1,169 | 
|                                     |                           |                   |        |     |      |  |        |      




|                                                              |  |  |       |   |  |  |       |  
|------------------------------------------------------------- |  |  | ----- | - |  |  | ----- | -
|(1)  Of which internal revenues                               |  |  | 1,823 |   |  |  | 2,173 |  
|(2)  Of which amortization of Telenors net
    excess values |  |  | 7     |   |  |  | 66    |  
|(3)  Of which write-downs of Telenors net excess
    values  |  |  | (22   | ) |  |  | (24   | )

|                         |  |           |       |   |      |  |       |  
|------------------------ |  | --------- | ----- | - | ---- |  | ----- | -
|                         |  | 2004      |       |   | 2005 | 
|                         |  |           |       |   |      | 
|                         |  | (NOK in   |      
|                         |  | millions) |      
|EBITDA                   |  |           |       |   |      |  |       |  
|Fixed  Norway           |  |           | 6,330 |   |      |  | 5,701 |  
|Fixed  Other operations |  |           | 15    |   |      |  | 185   |  
|Eliminations             |  |           | (7    | ) |      |  | (1    | )
|                         |  |           |       |   |      | 
|Total EBITDA             |  |           | 6,338 |   |      |  | 5,885 |  
|                         |  |           |       |   |      | 
|Operating profit         |  |           |       |   |      |  |       |  
|Fixed  Norway           |  |           | 3,077 |   |      |  | 3,019 |  
|Fixed  Other operations |  |           | (345  | ) |      |  | (960  | )
|Eliminations             |  |           | (7    | ) |      |  | 3     |  
|                         |  |           |       |   |      | 
|Total operating profit   |  |           | 2,725 |   |      |  | 2,062 |  
|                         |  |           |       |   |      | 



Overview




110



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##### Table of Contents







Fixed  Norway


|                                                |  |                   |        |   |      |  |        |  
|----------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                                                |  | 2004              |        |   | 2005 | 
|                                                |  |                   |        |   |      | 
|                                                |  | (NOK in millions) |       
|                                                |  |                   |       
|Telephony                                       |  |                   | 8,268  |   |      |  | 7,232  |  
|xDSL/ Internet                                  |  |                   | 1,753  |   |      |  | 2,039  |  
|Data services                                   |  |                   | 1,022  |   |      |  | 963    |  
|Other revenues                                  |  |                   | 1,656  |   |      |  | 1,465  |  
|                                                |  |                   |        |   |      | 
|Total retail revenues                           |  |                   | 12,699 |   |      |  | 11,699 |  
|                                                |  |                   |        |   |      | 
|Wholesale revenues                              |  |                   | 4,846  |   |      |  | 5,168  |  
|                                                |  |                   |        |   |      | 
|Total revenues(1)                               |  |                   | 17,545 |   |      |  | 16,867 |  
|                                                |  |                   |        |   |      | 
|External costs of materials and traffic charges |  |                   | 2,559  |   |      |  | 2,537  |  
|Internal costs of materials and traffic charges |  |                   | 1,333  |   |      |  | 1,243  |  
|Total costs of materials and traffic charges    |  |                   | 3,892  |   |      |  | 3,780  |  
|Own work capitalized                            |  |                   | (116   | ) |      |  | (158   | )
|Salaries and personnel costs                    |  |                   | 3,122  |   |      |  | 3,050  |  
|External other operating expenses               |  |                   | 2,585  |   |      |  | 2,733  |  
|Internal other operating expenses               |  |                   | 1,640  |   |      |  | 1,650  |  
|Other (income) and expenses                     |  |                   | 92     |   |      |  | 111    |  
|Total operating expenses                        |  |                   | 11,215 |   |      |  | 11,166 |  
|                                                |  |                   |        |   |      | 
|EBITDA(4)                                       |  |                   | 6,330  |   |      |  | 5,701  |  
|                                                |  |                   |        |   |      | 
|Depreciation and amortization(2)                |  |                   | 3,251  |   |      |  | 2,707  |  
|Write-downs(3)                                  |  |                   | 2      |   |      |  | (25    | )
|                                                |  |                   |        |   |      | 
|Operating profit                                |  |                   | 3,077  |   |      |  | 3,019  |  
|                                                |  |                   |        |   |      | 

111



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|                                     |  |                   |       |  |      |  |       | 
|------------------------------------ |  | ----------------- | ----- |  | ---- |  | ----- | 
|                                     |  | 2004              |       |  | 2005 | 
|                                     |  |                   |       |  |      | 
|                                     |  | (NOK in millions) |      
|                                     |  |                   |      
|EBITDA/ Total revenues (%)           |  |                   | 36.1  |  |      |  | 33.8  | 
|Operating profit/ Total revenues (%) |  |                   | 17.5  |  |      |  | 17.9  | 
|Capital expenditure                  |  |                   | 1,473 |  |      |  | 2,169 | 
|Investments in businesses            |  |                   | 2     |  |      |  | 44    | 
|No. of man-years (end of period)     |  |                   | 5,000 |  |      |  | 4,819 | 
|                                     |  |                   |       |  |      |  |       | 




|                                                                                                                                                                                                                                  |  |  |       |  |  |  |       |  
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ----- |  |  |  | ----- | -
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 1,842 |  |  |  | 2,190 |  
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 2     |  |  |  |      |  
|(3)  Of which write-downs of Telenors net excess
    values                                                                                                                                                                      |  |  | 2     |  |  |  | (36   | )
|(4)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of our
    operating segments.

Operating profit and EBITDA  Fixed 
Norway








Revenues  Fixed  Norway










112



---



##### Table of Contents









Operating expenses  Fixed 
Norway
















113



---



##### Table of Contents



Capital Expenditure  Fixed 
Norway




114



---



##### Table of Contents



Fixed  Other Operations


|                                       |  |           |       |   |      |  |       |  
|-------------------------------------- |  | --------- | ----- | - | ---- |  | ----- | -
|                                       |  | 2004      |       |   | 2005 | 
|                                       |  |           |       |   |      | 
|                                       |  | (NOK in   |      
|                                       |  | millions) |      
|Fixed Sweden                           |  |           | 1,654 |   |      |  | 2,096 |  
|Fixed Denmark                          |  |           |      |   |      |  | 306   |  
|Other countries/eliminations           |  |           | 175   |   |      |  | 179   |  
|                                       |  |           |       |   |      | 
|Total revenues(1)                      |  |           | 1,829 |   |      |  | 2,581 |  
|                                       |  |           |       |   |      | 
|EBITDA(4)                              |  |           | 15    |   |      |  | 185   |  
|                                       |  |           |       |   |      | 
|Of which:                              |  |           |       |   |      |  |       |  
| Fixed Sweden                         |  |           | 9     |   |      |  | 158   |  
| Fixed Denmark                        |  |           |      |   |      |  | 97    |  
| Other countries/eliminations         |  |           | 6     |   |      |  | (70   | )
|Depreciation and amortization(2)       |  |           | 322   |   |      |  | 528   |  
|Write-downs(3)                         |  |           | 38    |   |      |  | 617   |  
|                                       |  |           |       |   |      | 
|Operating profit                       |  |           | (345  | ) |      |  | (960  | )
|                                       |  |           |       |   |      | 
|Of which:                              |  |           |       |   |      |  |       |  
| Fixed Sweden                         |  |           | (289  | ) |      |  | (866  | )
| Fixed Denmark                        |  |           |      |   |      |  | 29    |  
| Other countries                      |  |           | (56   | ) |      |  | (123  | )
|Capital expenditure                    |  |           |       |   |      |  |       |  
|Fixed Sweden                           |  |           | 279   |   |      |  | 485   |  
|Fixed Denmark                          |  |           |      |   |      |  | 97    |  
|Other countries/eliminations           |  |           | 39    |   |      |  | 25    |  
|                                       |  |           |       |   |      | 
|Total capital expenditure              |  |           | 318   |   |      |  | 607   |  
|                                       |  |           |       |   |      | 
|Investments in businesses              |  |           |       |   |      |  |       |  
|Fixed Sweden                           |  |           | 93    |   |      |  | 4,452 |  
|Fixed Denmark                          |  |           |      |   |      |  | 1,320 |  
|Other countries/eliminations           |  |           | 39    |   |      |  | 25    |  
|                                       |  |           |       |   |      | 
|Total investments in businesses        |  |           | 93    |   |      |  | 5,772 |  
|                                       |  |           |       |   |      | 
|No. of man-years (end of period)       |  |           |       |   |      |  |       |  
|Fixed Sweden                           |  |           | 455   |   |      |  | 645   |  
|Fixed Denmark                          |  |           |      |   |      |  | 344   |  
|Other countries/eliminations           |  |           | 188   |   |      |  | 180   |  
|                                       |  |           |       |   |      | 
|Total no. of man-years (end of period) |  |           | 643   |   |      |  | 1,169 |  
|                                       |  |           |       |   |      | 
|                                       |  |           |       |   |      |  |       |  




|                                                                                                                                                                                                                                  |  |  |     |   |  |  |     | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | --- | - |  |  | --- | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 99  |   |  |  | 118 | 
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 5   |   |  |  | 66  | 
|(3)  Of which write-downs of Telenors net excess
    values                                                                                                                                                                      |  |  | (24 | ) |  |  | 12  | 
|(4)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of our
    operating segments.

115



---



##### Table of Contents



Fixed  Sweden




| |                                                 
| | ------------------------------------------------
| | Operating (loss) and EBITDA  Fixed 
    Sweden





| |                          
| | -------------------------
| | Revenues  Fixed  Sweden





| |                                          
| | -----------------------------------------
| | Capital Expenditures  Fixed 
    Sweden



Fixed  Denmark




Fixed  Other Countries




Operating Expenses  Fixed










116



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##### Table of Contents







TELENOR BROADCAST


|                                                |  |                   |       |   |      |  |       |  
|----------------------------------------------- |  | ----------------- | ----- | - | ---- |  | ----- | -
|                                                |  | 2004              |       |   | 2005 | 
|                                                |  |                   |       |   |      | 
|                                                |  | (NOK in millions) |      
|Distribution                                    |  |                   | 4,309 |   |      |  | 4,615 |  
|Transmission                                    |  |                   | 1,211 |   |      |  | 1,207 |  
|Other                                           |  |                   | 461   |   |      |  | 355   |  
|Eliminations                                    |  |                   | (635  | ) |      |  | (528  | )
|                                                |  |                   |       |   |      | 
|Total revenues(1)                               |  |                   | 5,346 |   |      |  | 5,649 |  
|                                                |  |                   |       |   |      | 
|External costs of materials and traffic charges |  |                   | 2,072 |   |      |  | 2,281 |  
|Internal costs of materials and traffic charges |  |                   | 98    |   |      |  | 118   |  
|Total costs of materials and traffic charges    |  |                   | 2,170 |   |      |  | 2,399 |  
|Own work capitalized                            |  |                   | (10   | ) |      |  | (13   | )
|Salaries and personnel costs                    |  |                   | 571   |   |      |  | 566   |  
|External other operating expenses               |  |                   | 861   |   |      |  | 944   |  
|Internal other operating expenses               |  |                   | 251   |   |      |  | 237   |  
|Other (income) and expenses                     |  |                   | 5     |   |      |  |      |  
|                                                |  |                   |       |   |      | 
|Total operating expenses                        |  |                   | 3,848 |   |      |  | 4,133 |  
|                                                |  |                   |       |   |      | 
|EBITDA(4)                                       |  |                   | 1,498 |   |      |  | 1,516 |  
|                                                |  |                   |       |   |      | 
|Of which:                                       |  |                   |       |   |      |  |       |  
| Distribution                                  |  |                   | 749   |   |      |  | 818   |  
| Transmission                                  |  |                   | 688   |   |      |  | 713   |  
| Other                                         |  |                   | 61    |   |      |  | (15   | )
|Depreciation and amortization(2)                |  |                   | 704   |   |      |  | 554   |  
|Write-downs(3)                                  |  |                   | 44    |   |      |  | (53   | )
|                                                |  |                   |       |   |      | 
|Operating profit                                |  |                   | 750   |   |      |  | 1,015 |  
|                                                |  |                   |       |   |      | 
|Of which:                                       |  |                   |       |   |      |  |       |  
| Distribution                                  |  |                   | 302   |   |      |  | 494   |  
| Transmission                                  |  |                   | 409   |   |      |  | 564   |  
| Other                                         |  |                   | 39    |   |      |  | (43   | )
|EBITDA/ Total revenues (%)                      |  |                   | 28.0  |   |      |  | 26.8  |  
|Operating profit/ Total revenues (%)            |  |                   | 14.0  |   |      |  | 18.0  |  
|Capital expenditure                             |  |                   | 880   |   |      |  | 392   |  
|Distribution                                    |  |                   | 120   |   |      |  | 207   |  
|Transmission                                    |  |                   | 735   |   |      |  | 122   |  
|Other                                           |  |                   | 25    |   |      |  | 63    |  

117



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##### Table of Contents



|                                 |  |                   |     |  |      |  |     | 
|-------------------------------- |  | ----------------- | --- |  | ---- |  | --- | 
|                                 |  | 2004              |     |  | 2005 | 
|                                 |  |                   |     |  |      | 
|                                 |  | (NOK in millions) |    
|Investments in businesses        |  |                   |    |  |      |  | 42  | 
|Distribution                     |  |                   |    |  |      |  | 23  | 
|Transmission                     |  |                   |    |  |      |  |    | 
|Other                            |  |                   |    |  |      |  | 19  | 
|No. of man-years (end of period) |  |                   | 774 |  |      |  | 808 | 
|Of which outside Norway          |  |                   | 222 |  |      |  | 255 | 
|                                 |  |                   |     |  |      |  |     | 




|                                                                                                                                                                                                                                  |  |  |     |  |  |  |     | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | --- |  |  |  | --- | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 135 |  |  |  | 131 | 
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 63  |  |  |  | 56  | 
|(3)  Of which write-downs of Telenors net excess
    values                                                                                                                                                                      |  |  | 25  |  |  |  | 75  | 
|(4)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of our
    operating segments.



| |                                        
| | ---------------------------------------
| | Operating profit and EBITDA  Broadcast









| |                     
| | --------------------
| | Revenues  Broadcast

pay-TV


pay-TV pay-TV




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| |                               
| | ------------------------------
| | Operating expenses  Broadcast





Capital Expenditure  Broadcast




Other  Broadcast




OTHER OPERATIONS


|                                           |  |                   |       |      |  |  |       |  
|------------------------------------------ |  | ----------------- | ----- | ---- |  |  | ----- | -
|                                           |  | 2004              |       | 2005
|                                           |  |                   |       |     
|                                           |  | (NOK in millions)
|EDB Business Partner                       |  |                   | 4,287 |      |  |  | 4,991 |  
|Satellite Services                         |  |                   | 2,385 |      |  |  | 2,428 |  
|Venture                                    |  |                   | 901   |      |  |  | 490   |  
|Corporate functions and group activities   |  |                   | 2,154 |      |  |  | 2,266 |  
|Other                                      |  |                   | 174   |      |  |  | 25    |  
|Eliminations                               |  |                   | (361  | )    |  |  | (233  | )
|                                           |  |                   |       |      |  |  |       |  
|Total revenues(1)                          |  |                   | 9,540 |      |  |  | 9,967 |  
|                                           |  |                   |       |      |  |  |       |  
|Total operating expenses                   |  |                   | 8,426 |      |  |  | 8,876 |  
|                                           |  |                   |       |      |  |  |       |  
|EBITDA(4)                                  |  |                   | 1,114 |      |  |  | 1,091 |  
|                                           |  |                   |       |      |  |  |       |  
|Of which:                                  |  |                   |       |      |  |  |       |  
| EDB Business Partner                     |  |                   | 978   |      |  |  | 785   |  
| Satellite Services                       |  |                   | 409   |      |  |  | 393   |  
| Venture                                  |  |                   | 130   |      |  |  | (2    | )
| Corporate functions and group activities |  |                   | (417  | )    |  |  | (77   | )
| Other                                    |  |                   | (2    | )    |  |  | (4    | )
| Eliminations                             |  |                   | 16    |      |  |  | (4    | )
|Depreciation and amortization(2)           |  |                   | 975   |      |  |  | 1,033 |  
|Write-downs(3)                             |  |                   | 43    |      |  |  | 10    |  
|                                           |  |                   |       |      |  |  |       |  
|Operating profit                           |  |                   | 96    |      |  |  | 48    |  
|                                           |  |                   |       |      |  |  |       |  

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|                                           |  |                   |       |      |  |  |       |  
|------------------------------------------ |  | ----------------- | ----- | ---- |  |  | ----- | -
|                                           |  | 2004              |       | 2005
|                                           |  |                   |       |     
|                                           |  | (NOK in millions)
|Of which:                                  |  |                   |       |      |  |  |       |  
| EDB Business Partner                     |  |                   | 736   |      |  |  | 377   |  
| Satellite Services                       |  |                   | 133   |      |  |  | 125   |  
| Venture                                  |  |                   | 97    |      |  |  | (23   | )
| Corporate functions and group activities |  |                   | (809  | )    |  |  | (420  | )
| Other                                    |  |                   | (76   | )    |  |  | (7    | )
| Eliminations                             |  |                   | 15    |      |  |  | (4    | )
|Capital expenditure                        |  |                   |       |      |  |  |       |  
|EDB Business Partner                       |  |                   | 233   |      |  |  | 401   |  
|Satellite Services                         |  |                   | 158   |      |  |  | 181   |  
|Venture                                    |  |                   | 52    |      |  |  | 30    |  
|Corporate functions and group activities   |  |                   | 249   |      |  |  | 213   |  
|Other                                      |  |                   | 5     |      |  |  | 7     |  
|                                           |  |                   |       |      |  |  |       |  
|Total capital expenditure                  |  |                   | 697   |      |  |  | 832   |  
|                                           |  |                   |       |      |  |  |       |  
|Investments in businesses                  |  |                   |       |      |  |  |       |  
|EDB Business Partner                       |  |                   | 1,076 |      |  |  | 50    |  
|Satellite Services                         |  |                   | 142   |      |  |  | 10    |  
|Venture                                    |  |                   | 57    |      |  |  | 43    |  
|Corporate functions and group activities   |  |                   | 54    |      |  |  | 214   |  
|Other                                      |  |                   |      |      |  |  | 15    |  
|                                           |  |                   |       |      |  |  |       |  
|Total investments in businesses            |  |                   | 1,329 |      |  |  | 332   |  
|                                           |  |                   |       |      |  |  |       |  
|Of which outside Norway                    |  |                   | 893   |      |  |  | 858   |  
|No. of man-years (end of period)           |  |                   |       |      |  |  |       |  
|EDB Business Partner                       |  |                   | 3,008 |      |  |  | 2,631 |  
|Satellite Services                         |  |                   | 537   |      |  |  | 523   |  
|Venture                                    |  |                   | 577   |      |  |  | 681   |  
|Corporate functions and group activities   |  |                   | 1,165 |      |  |  | 1,161 |  
|Other                                      |  |                   | 13    |      |  |  | 17    |  
|                                           |  |                   |       |      |  |  |       |  
|Total no. of man-years (end of period)     |  |                   | 5,300 |      |  |  | 5,013 |  
|                                           |  |                   |       |      |  |  |       |  
|Of which outside Norway                    |  |                   | 893   |      |  |  | 858   |  
|                                           |  |                   |       |      |  |  |       |  




|                                                                                                                                                                                                                                  |  |  |       |  |  |  |       | 
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  |  | ----- |  |  |  | ----- | 
|(1)  Of which internal revenues                                                                                                                                                                                                   |  |  | 2,929 |  |  |  | 2,907 | 
|(2)  Of which amortization of Telenors net
    excess values                                                                                                                                                                     |  |  | 8     |  |  |  | 8     | 
|(3)  Of which write-downs of Telenors net excess
    values                                                                                                                                                                      |  |  | 3     |  |  |  | 5     | 
|(4)  You should read Results of
    Operations  Group  Operating Profit and
    EBITDA for a discussion of EBITDA and its importance to
    management as an indicator of performance for each of our
    operating segments.

EDB Business Partner ASA (ownership interest 51.8% as of
December 31, 2005)






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Telenor Satellite Services










Telenor Venture








Other




Corporate Functions and Group Activities




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WORKING CAPITAL




LIQUIDITY


20-F


|                                                                             |  |                   |         |   |      |  |         |  
|---------------------------------------------------------------------------- |  | ----------------- | ------- | - | ---- |  | ------- | -
|                                                                             |  | 2004              |         |   | 2005 | 
|                                                                             |  |                   |         |   |      | 
|                                                                             |  | (NOK in millions) |        
|Aggregated cash flow statement                                               |  |                   |         |   |      |  |         |  
|Net cash flow from operating activities                                      |  |                   | 18,991  |   |      |  | 22,340  |  
|Net cash flow from investment activities                                     |  |                   | (13,031 | ) |      |  | (19,998 | )
|Net cash flow from financing activities                                      |  |                   | (8,255  | ) |      |  | (832    | )
|Effect on cash and cash equivalents of changes in foreign
    exchange rates |  |                   | (268    | ) |      |  | 215     |  
|Net change in cash and cash equivalents                                      |  |                   | (2,563  | ) |      |  | 1,725   |  
|Cash and cash equivalents January 1                                          |  |                   | 7,644   |   |      |  | 5,081   |  
|Cash and cash equivalents December 31                                        |  |                   | 5,081   |   |      |  | 6,806   |  





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|                                                                      |  |                   |       |  |          |  |       | 
|--------------------------------------------------------------------- |  | ----------------- | ----- |  | -------- |  | ----- | 
|                                                                      |  | Dec. 31,          |       |  | Dec. 31, | 
|                                                                      |  | 2004              |       |  | 2005     | 
|                                                                      |  |                   |       |  |          | 
|                                                                      |  | (NOK in millions) |      
|Cash and cash equivalents in the Groups cash pool systems            |  |                   | 3,028 |  |          |  | 1,705 | 
|Cash and cash equivalents not in the Groups cash pool
    systems(1) |  |                   | 2,053 |  |          |  | 5,101 | 
|                                                                      |  |                   |       |  |          | 
|Total cash and cash equivalents at year ends                          |  |                   | 5,081 |  |          |  | 6,806 | 
|                                                                      |  |                   |       |  |          | 






|    |                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Subsidiaries in which Telenor owns less than 90 percent of
    the shares are normally not participating in the Groups
    cash pool systems, held by Telenor ASA. As of December 31,
    2005, these cash and cash equivalents primarily related to
    Kyivstar and DiGi.

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INVESTMENTS


|                                                                         |  |                   |       |   |      |  |        |      |  |  |        | 
|------------------------------------------------------------------------ |  | ----------------- | ----- | - | ---- |  | ------ | ---- |  |  | ------ | 
|                                                                         |  | 2003(1)           |       |   | 2004 |  |        | 2005 | 
|                                                                         |  |                   |       |   |      |  |        |      | 
|                                                                         |  | (NOK in millions) |      
|Fixed networks                                                           |  |                   | 2,099 |   |      |  | 2,153  |      |  |  | 2,949  | 
|Mobile networks                                                          |  |                   | 2,487 |   |      |  | 4,175  |      |  |  | 7,838  | 
|Properties                                                               |  |                   | 546   |   |      |  | 233    |      |  |  | 453    | 
|Support systems (office and computer equipment, software, cars
    etc.) |  |                   | 1,991 |   |      |  | 2,159  |      |  |  | 2,698  | 
|Other intangible assets                                                  |  |                   | 81    |   |      |  | 2,654  |      |  |  | 801    | 
|Satellites                                                               |  |                   |      |   |      |  | 636    |      |  |  |       | 
|Prepaid leases                                                           |  |                   |      |   |      |  |       |      |  |  | 218    | 
|                                                                         |  |                   |       |   |      |  |        |      | 
|Work in progress (net additions) and other                               |  |                   | (750  | ) |      |  | 735    |      |  |  | 1,482  | 
|                                                                         |  |                   |       |   |      |  |        |      | 
|Total Capital expenditure (Capex)(2)                                     |  |                   | 6,454 |   |      |  | 12,745 |      |  |  | 16,439 | 
|Investments in businesses(3)                                             |  |                   | 563   |   |      |  | 5,809  |      |  |  | 8,858  | 
|                                                                         |  |                   |       |   |      |  |        |      | 
|Total                                                                    |  |                   | 7,017 |   |      |  | 18,554 |      |  |  | 25,297 | 
|                                                                         |  |                   |       |   |      |  |        |      | 






|    |                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The figures for Capital expenditures and investments in
    businesses for 2003 were unaffected by the change from Norwegian
    GAAP to IFRS.                           
|   
|(2) | Capital expenditure (Capex) is investments in property, plant
    and equipment and intangible assets.                                                                   
|   
|(3) | Investments in businesses are acquisition of shares and
    participations, including acquisition of subsidiaries and
    businesses not organized as separate companies.







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|                                                  |  |                   |     |  |      |  |       |      |  |  |       | 
|------------------------------------------------- |  | ----------------- | --- |  | ---- |  | ----- | ---- |  |  | ----- | 
|                                                  |  | 2003(1)           |     |  | 2004 |  |       | 2005 | 
|                                                  |  |                   |     |  |      |  |       |      | 
|                                                  |  | (NOK in millions) |    
|DTAC/ UCOM                                        |  |                   |    |  |      |  |      |      |  |  | 2,664 | 
|Bredbandsbolaget                                  |  |                   |    |  |      |  |      |      |  |  | 4,452 | 
|Cybercity                                         |  |                   |    |  |      |  |      |      |  |  | 1,313 | 
|Sonofon Holding A/ S(2)                           |  |                   |    |  |      |  | 3,639 |      |  |  |      | 
|European Telecom Luxembourg SA (ProMonte)         |  |                   |    |  |      |  | 541   |      |  |  |      | 
|GrameenPhone Ltd.                                 |  |                   | 86  |  |      |  | 298   |      |  |  |      | 
|CBB AS                                            |  |                   |    |  |      |  | 147   |      |  |  |      | 
|Nordialog                                         |  |                   |    |  |      |  | 52    |      |  |  |      | 
|Kyivstar G.S.M. JSC                               |  |                   | 8   |  |      |  | 35    |      |  |  |      | 
|One GmbH                                          |  |                   |    |  |      |  |      |      |  |  | 158   | 
|OJSC Comincom/Combellga                           |  |                   | 217 |  |      |  |      |      |  |  |      | 
|OJSC Golden Telecom                               |  |                   | 63  |  |      |  |      |      |  |  |      | 
|EDB Business Applications AB                      |  |                   |    |  |      |  |      |      |  |  | 50    | 
|Norsk Vekst Private IV LP                         |  |                   |    |  |      |  |      |      |  |  | 48    | 
|Tiscali AS                                        |  |                   |    |  |      |  |      |      |  |  | 43    | 
|Purchase of IT-operations in EDB Business Partner |  |                   |    |  |      |  | 738   |      |  |  |      | 
|GMPCS Personal Communications Inc.                |  |                   |    |  |      |  | 85    |      |  |  |      | 
|Neratek AS                                        |  |                   |    |  |      |  | 42    |      |  |  |      | 
|Bravida ASA                                       |  |                   | 82  |  |      |  | 27    |      |  |  |      | 
|Utfors AB                                         |  |                   | 13  |  |      |  | 70    |      |  |  |      | 
|Other                                             |  |                   | 94  |  |      |  | 135   |      |  |  | 130   | 
|                                                  |  |                   |     |  |      |  |       |      | 
|Total investments in businesses                   |  |                   | 563 |  |      |  | 5,809 |      |  |  | 8,858 | 
|                                                  |  |                   |     |  |      |  |       |      | 






|    |                                                                                                                  
|--- | -----------------------------------------------------------------------------------------------------------------
|(1) | The figures for investments in businesses for 2003 were
    unaffected by the change from Norwegian GAAP to IFRS.



|    |                                                                           
|--- | --------------------------------------------------------------------------
|(2) | In addition we paid NOK 0.8 billion to take over a
    shareholders loan.

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INFORMATION ABOUT CONTRACTUAL CASH PAYMENTS


Contractual Cash Payments




|                                                                |  |                   |        |           |        |  |        |           |      |  |           |  |  |         |       |  |  |  |        | 
|--------------------------------------------------------------- |  | ----------------- | ------ | --------- | ------ |  | ------ | --------- | ---- |  | --------- |  |  | ------- | ----- |  |  |  | ------ | 
|                                                                |  | Payments due      |       
|                                                                |  |                   |       
|                                                                |  |                   |        | Less than |        |  |       
|                                                                |  |                   |        | 1 year    |        |  |        |           | Over | 
|                                                                |  | Total             |        |           | (2006) |  |        | 2-3 years |      |  | 4-5 years |  |  | 5 Years |      
|                                                                |  |                   |        |           |        |  |        |           |      |  |           |  |  |         |      
|                                                                |  | (NOK in millions) |       
|Interest-bearing liabilities                                    |  |                   | 37,199 |           |        |  | 11,611 |           |      |  | 10,956    |  |  |         | 7,233 |  |  |  | 7,399  | 
|Finance lease obligations                                       |  |                   | 1,848  |           |        |  | 297    |           |      |  | 489       |  |  |         | 531   |  |  |  | 531    | 
|Minimum lease payments under noncancellable operating leases(1) |  |                   |        |           |        |  |        |           |      |  |           |  |  |         |       |  |  |  |        | 
|Lease of land and buildings                                     |  |                   | 5,661  |           |        |  | 857    |           |      |  | 1,356     |  |  |         | 1,039 |  |  |  | 2,409  | 
|Lease of Cars, Office Equipment etc                             |  |                   | 145    |           |        |  | 70     |           |      |  | 64        |  |  |         | 10    |  |  |  | 1      | 
|Lease of Sat- and Network capacity                              |  |                   | 1,184  |           |        |  | 435    |           |      |  | 458       |  |  |         | 178   |  |  |  | 113    | 
|Committed purchase obligations(1)                               |  |                   |        |           |        |  |        |           |      |  |           |  |  |         |       |  |  |  |        | 
|Purchase of Sat- and Network capacity                           |  |                   | 904    |           |        |  | 803    |           |      |  | 75        |  |  |         | 18    |  |  |  | 8      | 
|IT-Related Agreements                                           |  |                   | 887    |           |        |  | 407    |           |      |  | 305       |  |  |         | 162   |  |  |  | 13     | 
|Other contractual obligations                                   |  |                   | 1,356  |           |        |  | 599    |           |      |  | 581       |  |  |         | 146   |  |  |  | 30     | 
|Committed investments                                           |  |                   |        |           |        |  |       |           |      |  |           |  |  |         |       |  |  |  |        | 
|Properties and equipment                                        |  |                   | 1,456  |           |        |  | 1,447  |           |      |  | 9         |  |  |         |      |  |  |  |       | 
|Other contractual investments                                   |  |                   | 888    |           |        |  | 722    |           |      |  | 166       |  |  |         |      |  |  |  |       | 
|Total contractual cash obligations                              |  |                   | 51,528 |           |        |  | 17,248 |           |      |  | 14,459    |  |  |         | 9,317 |  |  |  | 10,504 | 
|Guarantees (expire)                                             |  |                   | 2,498  |           |        |  | 2,000  |           |      |  | 344       |  |  |         | 148   |  |  |  | 6      | 






|    |                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The table does not include agreements under which we have no
    binding obligation to purchase or future investments required
    under the UMTS licenses awarded to us in Norway, Denmark and
    Hungary.









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INFORMATION ABOUT CAPITAL RESOURCES




A2/P-1 -/A-2




OFF BALANCE SHEET ARRANGEMENTS










|                      |  |                   |       |             |        |  |        |           |  |        |           |  |      |         |     |  |  |  |   | 
|--------------------- |  | ----------------- | ----- | ----------- | ------ |  | ------ | --------- |  | ------ | --------- |  | ---- | ------- | --- |  |  |  | - | 
|                      |  |                   |       | Expire less |        |  |        |           |  |        | Expire    | 
|                      |  |                   |       | than 1 year |        |  | Expire |           |  | Expire |           |  | over |        
|                      |  | Total             |       |             | (2006) |  |        | 2-3 years |  |        | 4-5 years |  |      | 5 years |    
|                      |  |                   |       |             |        |  |        |           |  |        |           |  |      |         |    
|                      |  | (NOK in millions) |      
|Guarantee liabilities |  |                   | 2,498 |             |        |  | 2,000  |           |  |        | 344       |  |      |         | 148 |  |  |  | 6 | 



CRITICAL ACCOUNTING ESTIMATES UNDER IFRS




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Revenue recognition.


Impairment.




Depreciation and amortization.


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Business combinations.


Income taxes.




Pension costs, pension obligations and pension plan assets.


Legal proceedings, claims and regulatory discussions.


OTHER INFORMATION


Inflation




IFRS compared with U.S. GAAP




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ITEM 6:     DIRECTORS, SENIOR
MANAGEMENT AND EMPLOYEES


DIRECTORS AND SENIOR MANAGEMENT


day-to






Board of Directors


|                         |  |                        |  |      |  |                 |  |               |             | 
|------------------------ |  | ---------------------- |  | ---- |  | --------------- |  | ------------- | ----------- | 
|                         |  |                        |  |      |  |                 |  | Expiration of |            
|Name                     |  | Address                |  | Born |  | Positions       |  | current term  |            
|                         |  |                        |  |      |  |                 |  |               |            
|Thorleif Enger           |  | Oslo                   |  | 1943 |  | Chairman        |  |               | Spring 2007 | 
|Bjørg Ven                |  | Oslo                   |  | 1946 |  | Deputy Chairman |  |               | Spring 2007 | 
|Hanne de Mora            |  | Erlenbach, Switzerland |  | 1960 |  | Director        |  |               | Spring 2007 | 
|John Giverholt           |  | Oslo                   |  | 1952 |  | Director        |  |               | Spring 2007 | 
|Liselott Kilaas          |  | Oslo                   |  | 1959 |  | Director        |  |               | Spring 2007 | 
|Jørgen Lindegaard        |  | Copenhagen, Denmark    |  | 1943 |  | Director        |  |               | Spring 2007 | 
|Paul Bergqvist           |  | Vikbolandet, Sweden    |  | 1946 |  | Director        |  |               | Spring 2007 | 
|Harald Stavn(1)          |  | Kongsberg              |  | 1954 |  | Director        |  |               | Fall 2007   | 
|Per Gunnar Salomonsen(1) |  | Skien                  |  | 1954 |  | Director        |  |               | Fall 2007   | 
|Irma Tystad(1)           |  | Trysil                 |  | 1943 |  | Director        |  |               | Fall 2007   | 






|    |                          
|--- | -------------------------
|(1) | Elected by the employees.

Thorleif Enger


Bjørg Ven


Hanne de Mora


John Giverholt


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Liselott Kilaas


Jørgen Lindegaard


Paul Bergqvist


Harald Stavn


Per Gunnar Salomonsen


Irma Tystad


Board Practices




| |                       
| | ----------------------
| | Compensation Committee





| |                
| | ---------------
| | Audit Committee



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Group Executive Management


|                      |  |          |  |      |      |  |          |                                                                            
|--------------------- |  | -------- |  | ---- | ---- |  | -------- | ---------------------------------------------------------------------------
|Name                  |  | Address  |  | Born |      |  | Position
|                      |  |          |  |      |      |  |         
|Jon Fredrik Baksaas   |  | Sandvika |  |      | 1954 |  |          | President and CEO                                                          
|Trond Ø. Westlie      |  | Jar      |  |      | 1961 |  |          | Executive Vice President and CFO                                           
|Arve Johansen         |  | Oslo     |  |      | 1949 |  |          | Senior Executive Vice President and Head of Telenor Asia                   
|Morten Karlsen Sørby  |  | Karlstad |  |      | 1959 |  |          | Executive Vice President and Head of Telenor Nordic                        
|Jan Edvard Thygesen   |  | Nesbru   |  |      | 1951 |  |          | Executive Vice President and Head of Telenor Central and Eastern
    Europe
|Stig Eide Sivertsen   |  | Oslo     |  |      | 1959 |  |          | Executive Vice President and Head of Telenor Broadcast                     
|Bjørn Magnus Kopperud |  | Drammen  |  |      | 1955 |  |          | Executive Vice President and Head of Group Human Resources                 
|Ragnar H. Korsæth     |  | Oslo     |  |      | 1966 |  |          | Executive Vice President and Head of Global Coordination                   

Jon Fredrik Baksaas, President and CEO


Arve Johansen, Senior Executive Vice President/ Deputy CEO
and Head of Telenor Asia


Trond Ø. Westlie, Executive Vice President and Chief
Financial Officer (CFO)


Morten Karlsen Sørby, Executive Vice President and
Head of Telenor Nordic


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Jan Edvard Thygesen, Executive Vice President and Head of
Telenor Central and Eastern Europe


Stig Eide Sivertsen, Executive Vice President and Head of
Telenor Broadcast


Bjørn Magnus Kopperud, Executive Vice President and
Head of Group Human Resources


Ragnar H. Korsæth, Executive Vice President and Head
of Global Coordination


Corporate Assembly










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|                            |  |              |  |                
|--------------------------- |  | ------------ |  | ---------------
|Name                        |  | Address      |  | Position       
|                            |  |              |  |                
|Jan Erik Korssjøen          |  | Kongsberg    |  | Chairman       
|Marianne Lie                |  | Stabekk      |  | Deputy Chairman
|Hanne Harlem                |  | Oslo         |  | Member         
|Randi Braathe               |  | Rygge        |  | Member         
|Jostein Devold              |  | Kristiansand |  | Member         
|Arne Jenssen                |  | Trondheim    |  | Member         
|Hans Olav Karde             |  | Tromsø       |  | Member         
|Berit Kopren                |  | Stavanger    |  | Member         
|Nils-Edvard Olsen           |  | Kirkenes     |  | Member         
|Stein Erik Olsen            |  | Flaktveit    |  | Member         
|Jan Riddervold              |  | Lillehammer  |  | Member         
|Signe Marie Jore Ritterberg |  | Oslo         |  | Member         
|Stener Johannes Lium        |  | Ranheim      |  | Member         
|Inger-Grethe Solstad        |  | Stavanger    |  | Member         
|Astri Skare                 |  | Bergen       |  | Member         

Election Committee




Compensation of the Board of Directors, Corporate Assembly
and Group Management








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|                                                     |  |           |          |  |           |  |          |                  |  |                                                                                                                                                                                                                                                                  
|---------------------------------------------------- |  | --------- | -------- |  | --------- |  | -------- | ---------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                     |  | Agreed    |          |  |           |  |         
|                                                     |  | period of |          |  | Severance |  |          |                 
|Name/title                                           |  | notice    |          |  | Pay       |  |          | Pension benefits
|                                                     |  |           |          |  |           |  |          |                 
|Senior Executive Vice President
    Arve Johansen(1) |  |           | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 60. The Pension-qualifying
    income will be equal to the salary of December 31, 2004
    with an annual regulation according to the consumer price index.
|Executive Vice President,
    Trond Ø. Westlie       |  |           | 6 months |  |           |  | 6 months |                  |  | 66% of persion-qualifying income up to 12G. Defined contribution
    plan with 30% of salary above 12G.                                                                                                                                                          
|Executive Vice President
    Stig Eide Sivertsen     |  |           | 6 months |  |           |  | No       |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 62. The Pension-qualifying
    income will be equal to the salary of December 31, 2004
    with an annual regulation according to the consumer price index.
|Executive Vice President
    Jan Edvard Thygesen     |  |           | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 62. The Pension-qualifying
    income will be equal to the salary of December 31, 2003
    with an annual regulation according to the consumer price index.
|Executive Vice President
    Morten Karlsen Sørby    |  |           | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 62. The Pension-qualifying
    income will be equal to the salary of December 31, 2002
    with an annual regulation according to the consumer price index.
|Executive Vice President
    Ragnar H Korsæth(2)     |  |           | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 65. The Pension-qualifying
    income will be equal to the salary of December 31, 2002
    with an annual regulation according to the consumer price index.

136



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|                                                      |  |           |          |  |           |  |          |                  |  |                                                                                                                                                                                                                                                                  
|----------------------------------------------------- |  | --------- | -------- |  | --------- |  | -------- | ---------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                      |  | Agreed    |          |  |           |  |         
|                                                      |  | period of |          |  | Severance |  |          |                 
|Name/title                                            |  | notice    |          |  | Pay       |  |          | Pension benefits
|                                                      |  |           |          |  |           |  |          |                 
|Executive Vice President
    Bjørn Magnus Kopperud(2) |  |           | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 62. The Pension-qualifying
    income will be equal to the salary of December 31, 2002
    with an annual regulation according to the consumer price index.






|    |                                                                                                                                                                                                                                                                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Arve Johansen has an agreement which entitles him to a possible
    transfer to other positions within the organization with the
    right to be compensated by an amount equal to half their salary.
    These agreements relate to a specified time period up to the age
    of retirement. The future pension benefits are based on the
    salary at the time of transfer.
|   
|(2) | Joined the GEM in January 2006.                                                                                                                                                                                                                                                                                                                                               





| |                   
| | ------------------
| | Incentive Programs





Options granted in 2002:


Options granted in 2003 and 2004:


137



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|                                      |  |               |           |                      |  |                     |       |  |  |  |       | 
|------------------------------------- |  | ------------- | --------- | -------------------- |  | ------------------- | ----- |  |  |  | ----- | 
|                                      |  |               |           | Estimated fair value |  | Average exercise   
|                                      |  |               |           | at grant date (per   |  | price at the end of
|Share Options Telenor ASA             |  | Share options |           | share option)        |  | option life (1)    
|                                      |  |               |           |                      |  |                    
|Options granted in 2002 (21 February) |  |               | 2,520,000 |                      |  |                     | 7.28  |  |  |  | 50.96 | 
|Options granted in 2002 (21 June)     |  |               | 150,000   |                      |  |                     | 5.99  |  |  |  | 42.12 | 
|Options forfeited in 2002             |  |               | 55,000    |                      |  |                     |       |  |  |  | 50.96 | 
|Balance at 31 December 2002           |  |               | 2,615,000 |                      |  |                     |       |  |  |  | 50.45 | 
|Options granted in 2003               |  |               | 2,850,000 |                      |  |                     | 8.36  |  |  |  | 26.44 | 
|Options forfeited in 2003             |  |               | 290,000   |                      |  |                     |       |  |  |  | 32.36 | 
|Options exercised in 2003             |  |               | 71,667    |                      |  |                     |       |  |  |  | 50.96 | 
|Balance at 31 December 2003           |  |               | 5,103,333 |                      |  |                     |       |  |  |  | 38.06 | 
|Options granted in 2004               |  |               | 380,000   |                      |  |                     | 11.89 |  |  |  | 48.36 | 
|Options forfeited in 2004             |  |               | 45,000    |                      |  |                     |       |  |  |  | 26.98 | 
|Options exercised in 2004             |  |               | 1,027,994 |                      |  |                     |       |  |  |  | 36.28 | 
|Balance at 31 December 2004           |  |               | 4,410,339 |                      |  |                     |       |  |  |  | 33.97 | 
|Options granted in 2005               |  |               |          |                      |  |                     |       |  |  |  |      | 
|Options forfeited in 2005             |  |               | 145,000   |                      |  |                     |       |  |  |  | 44.98 | 
|Options exercised in 2005             |  |               | 1,237,675 |                      |  |                     |       |  |  |  | 33.11 | 
|Balance at 31 December 2005           |  |               | 3,027,664 |                      |  |                     |       |  |  |  | 34.11 | 






|    |                                                                                                                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Exercise price for the share option programs of 2002 are
    calculated at the latest possible date of exercise, and based on
    12 month NIBOR, implied forward rates calculated of the
    spot curve (February 20, 2006, and June 20, 2005). For
    the share option programs of 2003 and 2004, the exercise prices
    are fixed throughout the options terms.





|                 |             |             |  |                  |           |                     |  |                     |           |  |  |  |         |  |  |  |         | 
|---------------- | ----------- | ----------- |  | ---------------- | --------- | ------------------- |  | ------------------- | --------- |  |  |  | ------- |  |  |  | ------- | 
|                 |             |             |  | Weighted Average |           |                     |  |                    
|                 |             |             |  | Remaining Life   |           | Options Exercisable |  | Options Exercisable
|Weighted Average |             |             |  | as of            |           | as of               |  | as of              
|Exercise Price   |             | Options     |  | December 31,     |           | December 31,        |  | December 31,       
|(in NOK)(1)      |             | Outstanding |  | 2005             |           | 2005(1)             |  | 2004(1)            
|                 |             |             |  |                  |           |                     |  |                    
|                 | 41.67(1)(2) |             |  |                  | 937,667   |                     |  |                     | 3.1 years |  |  |  | 937,667 |  |  |  | 913,667 | 
|                 | 33.32(1)(3) |             |  |                  | 150,000   |                     |  |                     | 3.1 years |  |  |  | 150,000 |  |  |  | 100,000 | 
|                 | 26.44(4)    |             |  |                  | 1,706,664 |                     |  |                     | 4.1 years |  |  |  | 906,674 |  |  |  | 583,328 | 
|                 | 48.36(5)    |             |  |                  | 233,333   |                     |  |                     | 4.8 years |  |  |  | 53,333  |  |  |  |        | 






|    |                                                                                                                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Exercise price for the share option programs of 2002 are
    calculated at the latest possible date of exercise, and based on
    12 month NIBOR, implied forward rates calculated of the
    spot curve (February 20, 2006, and June 20, 2005). For
    the share option programs of 2003 and 2004, the exercise prices
    are fixed throughout the options terms.
|   
|(2) | First possible exercise was February 2003 for
    1/3 of the options.                                                                                                                                                                                                                                                                                                
|   
|(3) | First possible exercise was July 2003 for
    1/3 of the options.                                                                                                                                                                                                                                                                                                    
|   
|(4) | First possible exercise was February 2004 for
    1/3 of the options.                                                                                                                                                                                                                                                                                                
|   
|(5) | First possible exercise was February 2005 for
    1/3 of the options.                                                                                                                                                                                                                                                                                                

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|                         |  |              |         |  |            |  |         |              |  |  |         | 
|------------------------ |  | ------------ | ------- |  | ---------- |  | ------- | ------------ |  |  | ------- | 
|                         |  | Options      |         |  | Options    |  |         | Options      | 
|                         |  | Granted on   |         |  | Granted on |  |         | Granted on   | 
|                         |  | February 21, |         |  | June 21,   |  |         | February 21, | 
|Name                     |  | 2002         |         |  | 2002       |  |         | 2003         | 
|                         |  |              |         |  |            |  |         |              | 
|Jon Fredrik Baksaas      |  |              | 100,000 |  |            |  | 150,000 |              |  |  | 250,000 | 
|Trond Ø. Westlie         |  |              |        |  |            |  |        |              |  |  |        | 
|Arve Johansen            |  |              | 100,000 |  |            |  |        |              |  |  | 100,000 | 
|Jan Edvard Thygesen      |  |              | 75,000  |  |            |  |        |              |  |  | 75,000  | 
|Stig Eide Sivertsen      |  |              | 75,000  |  |            |  |        |              |  |  | 75,000  | 
|Morten Karlsen Sørby     |  |              | 70,000  |  |            |  |        |              |  |  | 75,000  | 
|Bjørn Magnus Kopperud(1) |  |              | 50,000  |  |            |  |        |              |  |  | 50,000  | 
|Ragnar H. Korsæth(1)     |  |              | 20,000  |  |            |  |        |              |  |  | 30,000  | 






|    |                                
|--- | -------------------------------
|(1) | Joined the GEM in January 2006.



Pension Benefits












139



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Exemptions from corporate governance listing requirements
under the NASDAQ Marketplace Rules






1 3






140



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##### Table of Contents



EMPLOYEES






|                          |  |                        |        |         |                        |  |       |                        |  |  |         |  |  |        |        |  |       |         |       |        |  |  |        |  |  |       |        |  |  |  |        |  |  |  |        | 
|------------------------- |  | ---------------------- | ------ | ------- | ---------------------- |  | ----- | ---------------------- |  |  | ------- |  |  | ------ | ------ |  | ----- | ------- | ----- | ------ |  |  | ------ |  |  | ----- | ------ |  |  |  | ------ |  |  |  | ------ | 
|                          |  | Number of employees(1) |        |         | Number of employees(1) |  |       | Number of employees(1) | 
|                          |  |                        |        |         |                        |  |       |                        | 
|                          |  | December 31, 2003      |        |         | December 31, 2004      |  |       | December 31, 2005      | 
|                          |  |                        |        |         |                        |  |       |                        | 
|                          |  |                        |        | Outside |                        |  |       |                        |  |  | Outside |  |  |        |        |  |       | Outside |       |        | 
|Business Area             |  | Norway                 |        |         | Norway                 |  |       | Total                  |  |  | Norway  |  |  | Norway |        |  | Total |         |       | Norway |  |  | Norway |  |  | Total |       
|                          |  |                        |        |         |                        |  |       |                        |  |  |         |  |  |        |        |  |       |         |       |        |  |  |        |  |  |       |       
|Telenor Mobil  Norway    |  |                        | 1,590  |         |                        |  |      |                        |  |  | 1,590   |  |  |        | 1,413  |  |       |         |      |        |  |  | 1,413  |  |  |       | 1,378  |  |  |  |       |  |  |  | 1,378  | 
|Sonofon  Denmark         |  |                        |       |         |                        |  |      |                        |  |  |        |  |  |        |       |  |       |         | 1,343 |        |  |  | 1,343  |  |  |       |       |  |  |  | 1,206  |  |  |  | 1,206  | 
|Kyivstar  Ukraine        |  |                        |       |         |                        |  | 1,269 |                        |  |  | 1,269   |  |  |        |       |  |       |         | 1,880 |        |  |  | 1,880  |  |  |       |       |  |  |  | 2,685  |  |  |  | 2,685  | 
|Pannon GSM  Hungary      |  |                        |       |         |                        |  | 1,499 |                        |  |  | 1,499   |  |  |        |       |  |       |         | 1,384 |        |  |  | 1,384  |  |  |       |       |  |  |  | 1,319  |  |  |  | 1,319  | 
|DiGi.Com  Malaysia       |  |                        |       |         |                        |  | 1,450 |                        |  |  | 1,450   |  |  |        |       |  |       |         | 1,549 |        |  |  | 1,549  |  |  |       |       |  |  |  | 1,603  |  |  |  | 1,603  | 
|GrameenPhone  Bangladesh |  |                        |       |         |                        |  | 829   |                        |  |  | 829     |  |  |        |       |  |       |         | 1,147 |        |  |  | 1,147  |  |  |       |       |  |  |  | 2,731  |  |  |  | 2,731  | 
|Other mobile operations   |  |                        |       |         |                        |  | 21    |                        |  |  | 21      |  |  |        |       |  |       |         | 462   |        |  |  | 462    |  |  |       |       |  |  |  | 4,848  |  |  |  | 4,848  | 
|Fixed                     |  |                        | 5,399  |         |                        |  | 634   |                        |  |  | 6,033   |  |  |        | 5,008  |  |       |         | 643   |        |  |  | 5,651  |  |  |       | 4,816  |  |  |  | 1,172  |  |  |  | 5,987  | 
|Broadcast                 |  |                        | 599    |         |                        |  | 210   |                        |  |  | 809     |  |  |        | 552    |  |       |         | 222   |        |  |  | 774    |  |  |       | 553    |  |  |  | 255    |  |  |  | 808    | 
|Other Operations          |  |                        | 4,412  |         |                        |  | 1,538 |                        |  |  | 5,950   |  |  |        | 4,427  |  |       |         | 870   |        |  |  | 5,297  |  |  |       | 4,153  |  |  |  | 881    |  |  |  | 5,035  | 
|                          |  |                        |        |         |                        |  |       |                        |  |  |         |  |  |        |        |  |       |         |       |        |  |  |        |  |  |       |       
|Total                     |  |                        | 12,000 |         |                        |  | 7,450 |                        |  |  | 19,450  |  |  |        | 11,400 |  |       |         | 9,500 |        |  |  | 20,900 |  |  |       | 10,900 |  |  |  | 16,700 |  |  |  | 27,600 | 
|                          |  |                        |        |         |                        |  |       |                        |  |  |         |  |  |        |        |  |       |         |       |        |  |  |        |  |  |       |       






|    |                      
|--- | ---------------------
|(1) | Full-time equivalents







141



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SHARE OWNERSHIP




|                       |  |                  |        | 
|---------------------- |  | ---------------- | ------ | 
|                       |  | Number of shares
|                       |  | as of           
|The Board of Directors |  | March 31, 2006  
|                       |  |                 
|Thorleif Enger         |  |                  | 12,000 | 
|Bjørg Ven              |  |                  | 10,000 | 
|John Giverholt         |  |                  |       | 
|Jørgen Lindegaard      |  |                  |       | 
|Hanne de Mora          |  |                  |       | 
|Liselott Kilaas        |  |                  |       | 
|Paul Bergqvist         |  |                  |       | 
|Harald Stavn*          |  |                  | 3,844  | 
|Per Gunnar Salomonsen* |  |                  | 1,896  | 
|Irma Tystad*           |  |                  | 813    | 






|                                        |  |  |       | 
|--------------------------------------- |  |  | ----- | 
|Alternates for Employee Representatives |  | 
|on Board of Directors                   |  | 
|                                        |  | 
|Helge Enger                             |  |  | 1,737 | 
|Roger Rønning                           |  |  | 1,137 | 
|Bjørn Andre Anderssen                   |  |  | 720   | 
|Hjørdis Henriksen                       |  |  | 275   | 
|Kaare Ingar Sletta                      |  |  | 387   | 
|Marianne Losnegaard Jensen              |  |  |      | 

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|                            |  |                  |       | 
|--------------------------- |  | ---------------- | ----- | 
|                            |  | Number of shares |      
|                            |  | as of            |      
|The Corporate Assembly      |  | March 31, 2006   |      
|                            |  |                  |      
|Jan Erik Korssjøen          |  |                  |      | 
|Marianne Lie                |  |                  |      | 
|Hanne Harlem                |  |                  |      | 
|Randi Braathe               |  |                  |      | 
|Jostein Devold              |  |                  |      | 
|Arne Jenssen                |  |                  | 407   | 
|Hans Olav Karde             |  |                  |      | 
|Berit Kopren                |  |                  | 275   | 
|Nils-Edvard Olsen           |  |                  |      | 
|Stein Erik Olsen            |  |                  | 116   | 
|Jan Riddervold              |  |                  |      | 
|Signe Marie Jore Ritterberg |  |                  |      | 
|Stener Johannes Lium        |  |                  |      | 
|Inger-Grethe Solstad        |  |                  | 682   | 
|Astri Skare                 |  |                  |      | 
|Alternates:                 |  |                  |       | 
|Ingvild Nybø Holth          |  |                  |      | 
|Siri Pettersen Strandnæs    |  |                  |      | 
|Esther M. Strømme           |  |                  |      | 
|Francisco Rasmijn           |  |                  | 179   | 
|Ragnhild Holm               |  |                  | 533   | 
|Observers:                  |  |                  |       | 
|Grethe Elin Henriksen-Alves |  |                  | 1,220 | 
|Brit Østby Fredriksen       |  |                  | 1,730 | 

|                               |  |                  |        | 
|------------------------------ |  | ---------------- | ------ | 
|                               |  | Number of shares |       
|                               |  | as of            |       
|The Group Executive Management |  | March 31, 2006   |       
|                               |  |                  |       
|Jon Fredrik Baksaas            |  |                  | 57,852 | 
|Trond Ø. Westlie               |  |                  |       | 
|Arve Johansen                  |  |                  | 51,462 | 
|Morten Karlsen Sørby           |  |                  | 7,794  | 
|Jan Edvard Thygesen            |  |                  | 56,278 | 
|Stig Eide Sivertsen            |  |                  | 28,765 | 
|Ragnar H. Korsæth              |  |                  | 5,670  | 
|Bjørn Magnus Kopperud          |  |                  | 2,777  | 



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##### Table of Contents
















|        |                                                  
|------- | -------------------------------------------------
|ITEM 7: | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS



RELATIONSHIP BETWEEN TELENOR AND THE KINGDOM OF NORWAY


Background




The Kingdom of Norway as a Shareholder






144



---



##### Table of Contents















The Kingdom of Norway as a Regulator


day-to




The Kingdom of Norway as a Customer




145



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##### Table of Contents



OTHER RELATED PARTY TRANSACTIONS




OTHER INFORMATION











|        |                      
|------- | ---------------------
|ITEM 8: | FINANCIAL INFORMATION

FINANCIAL STATEMENTS




LEGAL PROCEEDINGS








Telenor Eiendom Holding AS




146



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##### Table of Contents





Telenor Mobile AS






Disputes mentioned in note 24 to the Telenors
financial statements for 2004, for which a verdict has been
reached:









|        |                      
|------- | ---------------------
|ITEM 9: | THE OFFER AND LISTING





147



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|               |  |                |       |  |           |  |       |      |  |  |        |  |  |  |        | 
|-------------- |  | -------------- | ----- |  | --------- |  | ----- | ---- |  |  | ------ |  |  |  | ------ | 
|               |  | NOK per        |       |  |          
|               |  | ordinary share |       |  | $ per ADS | 
|               |  |                |       |  |           | 
|               |  | High           |       |  | Low       |  |       | High |  |  | Low    | 
|               |  |                |       |  |           |  |       |      |  |  |        | 
|2001           |  |                | 45.40 |  |           |  | 28.00 |      |  |  | 15.625 |  |  |  | 9.000  | 
|2002           |  |                | 39.30 |  |           |  | 22.50 |      |  |  | 13.330 |  |  |  | 9.000  | 
|2003           |  |                | 44.50 |  |           |  | 22.80 |      |  |  | 20.200 |  |  |  | 9.500  | 
|2004           |  |                | 56.50 |  |           |  | 43.40 |      |  |  | 28.390 |  |  |  | 19.008 | 
|2005           |  |                | 66.75 |  |           |  | 49.50 |      |  |  | 30.295 |  |  |  | 22.850 | 
|2003           |  |                |       |  |           |  |       |      |  |  |        |  |  |  |        | 
|First Quarter  |  |                | 28.80 |  |           |  | 22.80 |      |  |  | 12.000 |  |  |  | 9.500  | 
|Second Quarter |  |                | 31.80 |  |           |  | 23.20 |      |  |  | 13.800 |  |  |  | 9.760  | 
|Third Quarter  |  |                | 33.80 |  |           |  | 29.20 |      |  |  | 14.300 |  |  |  | 12.020 | 
|Fourth Quarter |  |                | 44.50 |  |           |  | 32.20 |      |  |  | 20.200 |  |  |  | 13.701 | 
|2004           |  |                |       |  |           |  |       |      |  |  |        |  |  |  |        | 
|First Quarter  |  |                | 51.00 |  |           |  | 43.40 |      |  |  | 22.550 |  |  |  | 19.760 | 
|Second Quarter |  |                | 48.60 |  |           |  | 43.60 |      |  |  | 21.890 |  |  |  | 19.008 | 
|Third Quarter  |  |                | 51.25 |  |           |  | 45.50 |      |  |  | 22.650 |  |  |  | 19.690 | 
|Fourth Quarter |  |                | 56.50 |  |           |  | 50.75 |      |  |  | 28,390 |  |  |  | 23.150 | 
|2005           |  |                |       |  |           |  |       |      |  |  |        |  |  |  |        | 
|First Quarter  |  |                | 60.75 |  |           |  | 54.75 |      |  |  | 29.600 |  |  |  | 26.000 | 
|Second Quarter |  |                | 58.75 |  |           |  | 49.50 |      |  |  | 28.230 |  |  |  | 22.950 | 
|Third Quarter  |  |                | 59.50 |  |           |  | 50.50 |      |  |  | 28.437 |  |  |  | 22.850 | 
|Fourth Quarter |  |                | 66.75 |  |           |  | 54.00 |      |  |  | 30.295 |  |  |  | 25.399 | 
|2006           |  |                |       |  |           |  |       |      |  |  |        |  |  |  |        | 
|First Quarter  |  |                | 73.75 |  |           |  | 64.50 |      |  |  | 33.990 |  |  |  | 28.910 | 
|October 2005   |  |                | 63.50 |  |           |  | 54.00 |      |  |  | 29.540 |  |  |  | 25.399 | 
|November 2005  |  |                | 63.50 |  |           |  | 59.25 |      |  |  | 29.760 |  |  |  | 27.500 | 
|December 2005  |  |                | 66.75 |  |           |  | 64.00 |      |  |  | 30.295 |  |  |  | 28.250 | 
|January 2006   |  |                | 67.75 |  |           |  | 64.50 |      |  |  | 31.409 |  |  |  | 28.910 | 
|February 2006  |  |                | 73.00 |  |           |  | 66.50 |      |  |  | 32.600 |  |  |  | 29.550 | 
|March 2006     |  |                | 73.75 |  |           |  | 70.00 |      |  |  | 33.990 |  |  |  | 31.540 | 

148



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ITEM 10:     ADDITIONAL
INFORMATION


MEMORANDUM AND ARTICLES OF ASSOCIATION


Summary of our Articles of Association




| |                    
| | -------------------
| | Name of the company





| |                  
| | -----------------
| | Registered office





| |                      
| | ---------------------
| | Object of the company





| |              
| | -------------
| | Share capital







| |                        
| | -----------------------
| | Nominal value of shares





| |                   
| | ------------------
| | Board of Directors





| |                   
| | ------------------
| | Corporate Assembly





| |                       
| | ----------------------
| | Annual General Meeting





| |                   
| | ------------------
| | Election Committee



149



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Shareholders Meetings








Voting Rights








The VPS System and Transfer of Shares








150



---



##### Table of Contents







Amendments to our Articles of Association, including
Variation of Rights




Additional Issuances and Preferential Rights






non-U.S.




Minority Rights




151



---



##### Table of Contents



Mandatory Bid Requirement




Compulsory Acquisition






Election and Removal of Directors and Corporate Assembly






152



---



##### Table of Contents





Payment of Dividends




Rights of Redemption and Repurchase of Shares






Shareholders Votes on Certain Reorganizations






Liability of Directors






Indemnification of Directors and Officers




153



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Disclosures of Interests




Distribution of Assets on Liquidation


wound-up winding-up


MATERIAL CONTRACTS




EXCHANGE CONTROLS






TAXATION


Norwegian Tax Matters




Taxation of dividends and gains on shares




Corporate shareholders




154



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Individual shareholders














155



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##### Table of Contents



Wealth tax




Inheritance tax and gift tax




Taxation upon realization of subscription rights








Transfer tax




United States Tax Matters


Generally






| |   |                                                                                                                     
| | - | --------------------------------------------------------------------------------------------------------------------
| |  | dealers in securities,                                                                                              
|
| |  | traders in securities that elect to use a
    mark-to-market method
    of accounting for their securities holdings,
|
| |  | tax-exempt organizations,                                                                                           
|
| |  | life insurance companies,                                                                                           
|
| |  | persons liable for alternative minimum tax,                                                                         
|
| |  | persons who actually or constructively own 10% or more of the
    voting stock of Telenor,                          

156



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| |   |                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------
| |  | persons who hold shares or ADSs through a partnership or other
    pass-through entity,             
|
| |  | persons who hold shares or ADSs as part of a straddle or a
    hedging or conversion transaction, or
|
| |  | U.S. holders (as defined below) whose functional currency
    is not the U.S. dollar.               







| |   |                                                                                                                                                                                                                      
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | a citizen or resident of the United States,                                                                                                                                                                          
|
| |  | a U.S. domestic corporation,                                                                                                                                                                                         
|
| |  | an estate whose income is subject to United States federal
    income tax regardless of its source, or                                                                                                               
|
| |  | a trust if a United States court can exercise primary
    supervision over the trusts administration and one or more
    United States persons are authorized to control all substantial
    decisions of the trust.

You should consult your personal tax attorney, CPA or other
advisor regarding United States federal, state, local and any
other tax consequences of owning and disposing of shares and
ADSs for your particular situation.


Taxation of dividends


121-day




157



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Taxation of capital gains






Passive Foreign Investment Company
(PFIC) Rules








| |   |                                                                                                                                                                                          
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | At least 75% of our gross income for the taxable year is passive
    income, or                                                                                                          
|
| |  | At least 50% of the value, determined on the basis of a
    quarterly average, of our assets is attributable to assets that
    produce or are held for the production of passive income.



mark-to




| |   |                                                                                                                                                                                                                                                                                                                                                        
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Any gain you realize on the sale or other disposition of your
    shares or ADSs, and                                                                                                                                                                                                                                                                  
|
| |  | Any excess distribution that we make to you (generally, any
    distributions to you during a single taxable year that are
    greater than 125% of the average annual distributions received
    by you in respect of the shares or ADSs during the three
    preceding taxable years or, if shorter, your holding period for
    the shares or ADSs).

158



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| |   |                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------
| |  | The gain or excess distribution will be allocated ratably over
    your holding period for the shares or ADSs,                                
|
| |  | The amount allocated to the taxable year in which you realized
    the gain or excess distribution will be taxed as ordinary income,          
|
| |  | The amount allocated to each prior year, with certain
    exceptions, will be taxed at the highest tax rate in effect for
    that year, and  
|
| |  | The interest charge generally applicable to underpayments of tax
    will be imposed in respect of the tax attributable to each such
    year.



mark-to mark-to






DOCUMENTS ON DISPLAY


20-F 1-800-SEC-0330







|         |                                                           
|-------- | ----------------------------------------------------------
|ITEM 11: | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Funding and Financial Risk Management Activities in
Telenor




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Sensitivity Analysis












|                                    |  |                   |         |   |                |  |      |                |  |  |            |   |  |     |        |   |      |  |        |      |  |  |    |   |  |  |   | 
|----------------------------------- |  | ----------------- | ------- | - | -------------- |  | ---- | -------------- |  |  | ---------- | - |  | --- | ------ | - | ---- |  | ------ | ---- |  |  | -- | - |  |  | - | 
|                                    |  | Fair value        |         |   |                |  |      |                | 
|                                    |  | as of             |         |   | Interest rates |  |      | Exchange rates |  |  | Volatility |  
|                                    |  | December 31,      |         |   |                |  |      |                |  |  |            |  
|2005                                |  | 2005              |         |   | -10%           |  |      | 10%            |  |  | -10%       |   |  | 10% |        |   | -10% |  |        | -10% | 
|                                    |  |                   |         |   |                |  |      |                |  |  |            |   |  |     |        |   |      |  |        |      | 
|                                    |  | (NOK in millions) |        
|Foreign exchange derivatives(2)     |  |                   | 530     |   |                |  | 24   |                |  |  | (24        | ) |  |     | (1,506 | ) |      |  | 1,506  |      |  |  |   |   |  |  |  | 
|Interest rate derivatives(2)        |  |                   | (170    | ) |                |  | 57   |                |  |  | (71        | ) |  |     | (29    | ) |      |  | 29     |      |  |  | (8 | ) |  |  | 8 | 
|Net interest-bearing liabilities(1) |  |                   | (32,155 | ) |                |  | (275 | )              |  |  | 271        |   |  |     | 3,406  |   |      |  | (3,406 | )    |  |  |   |   |  |  |  | 
|                                    |  |                   |         |   |                |  |      |                |  |  |            |   |  |     |        |   |      |  |        |      | 
|Total                               |  |                   | (31,795 | ) |                |  | (194 | )              |  |  | 176        |   |  |     | 1,871  |   |      |  | (1,871 | )    |  |  | (8 | ) |  |  | 8 | 
|                                    |  |                   |         |   |                |  |      |                |  |  |            |   |  |     |        |   |      |  |        |      | 

|                                 |  |                   |         |   |                |  |      |                |  |  |            |   |  |     |       |   |      |  |        |      |  |  |     |   |  |  |    | 
|-------------------------------- |  | ----------------- | ------- | - | -------------- |  | ---- | -------------- |  |  | ---------- | - |  | --- | ----- | - | ---- |  | ------ | ---- |  |  | --- | - |  |  | -- | 
|                                 |  | Fair value        |         |   |                |  |      |                | 
|                                 |  | as of             |         |   | Interest rates |  |      | Exchange rates |  |  | Volatility |  
|                                 |  | December 31,      |         |   |                |  |      |                |  |  |            |  
|2004                             |  | 2004              |         |   | -10%           |  |      | 10%            |  |  | -10%       |   |  | 10% |       |   | -10% |  |        | -10% | 
|                                 |  |                   |         |   |                |  |      |                |  |  |            |   |  |     |       |   |      |  |        |      | 
|                                 |  | (NOK in millions) |        
|Foreign exchange derivatives     |  |                   | 967     |   |                |  | 39   |                |  |  | (38        | ) |  |     | (111  | ) |      |  | 111    |      |  |  |    |   |  |  |   | 
|Interest rate derivatives        |  |                   | 26      |   |                |  | 28   |                |  |  | (24        | ) |  |     | (28   | ) |      |  | 28     |      |  |  | (10 | ) |  |  | 11 | 
|Net interest-bearing liabilities |  |                   | (21,180 | ) |                |  | (265 | )              |  |  | 260        |   |  |     | 2,277 |   |      |  | (2,277 | )    |  |  |    |   |  |  |   | 
|                                 |  |                   |         |   |                |  |      |                |  |  |            |   |  |     |       |   |      |  |        |      | 
|Total                            |  |                   | (20,187 | ) |                |  | (198 | )              |  |  | 198        |   |  |     | 2,138 |   |      |  | (2,138 | )    |  |  | (10 | ) |  |  | 11 | 
|                                 |  |                   |         |   |                |  |      |                |  |  |            |   |  |     |       |   |      |  |        |      | 






|    |                                                                                                       
|--- | ------------------------------------------------------------------------------------------------------
|(1) | Includes interest-bearing liabilities at fair value. Cash and
    short-term money market investments.
|   
|(2) | All derivatives are included.                                                                         







160



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|         |                                                       
|-------- | ------------------------------------------------------
|ITEM 12: | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES






PART II







|         |                                                
|-------- | -----------------------------------------------
|ITEM 13: | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES








|         |                                                                                 
|-------- | --------------------------------------------------------------------------------
|ITEM 14: | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND
    USE OF PROCEEDS








|         |                        
|-------- | -----------------------
|ITEM 15: | CONTROLS AND PROCEDURES

13a-15(e).




13a-15(b))









|          |                                 
|--------- | --------------------------------
|ITEM 16A: | AUDIT COMMITTEE FINANCIAL EXPERT

20-F


161



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|          |               
|--------- | --------------
|ITEM 16B: | CODE OF ETHICS

20-F







|          |                                       
|--------- | --------------------------------------
|ITEM 16C: | PRINCIPAL ACCOUNTANT FEES AND SERVICES



|                   |  |                   |      |  |      |  |      | 
|------------------ |  | ----------------- | ---- |  | ---- |  | ---- | 
|                   |  | Year Ended        |     
|                   |  | December 31,      |     
|                   |  |                   |     
|                   |  | 2004              |      |  | 2005 | 
|                   |  |                   |      |  |      | 
|                   |  | (NOK in millions) |     
|Audit Fees         |  |                   | 29.0 |  |      |  | 41.7 | 
|Audit-Related Fees |  |                   | 10.0 |  |      |  | 9.3  | 
|Tax Fees           |  |                   | 5.2  |  |      |  | 5.6  | 
|All Other Fees     |  |                   | 0.7  |  |      |  | 1.0  | 
|                   |  |                   |      |  |      | 
|Total              |  |                   | 44.9 |  |      |  | 57.6 | 
|                   |  |                   |      |  |      | 

Audit services.


Audit-related services.


Tax services.


Other services.






162



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|          |                                                           
|--------- | ----------------------------------------------------------
|ITEM 16D: | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES








|          |                                                                       
|--------- | ----------------------------------------------------------------------
|ITEM 16E: | PURCHASES OF EQUITY SECURITIES BY ISSUER AND AFFILIATED
    PURCHASERS









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ISSUER PURCHASES OF EQUITY SECURITIES


|            |  |                     |            |                   |                   |                     |                    |             |                  |                  |                    |     |  |  |             | 
|----------- |  | ------------------- | ---------- | ----------------- | ----------------- | ------------------- | ------------------ | ----------- | ---------------- | ---------------- | ------------------ | --- |  |  | ----------- | 
|            |  |                     |            |                   |                   | (c) Total Number of |                    |             | (d) Maximum      |                 
|            |  |                     |            |                   |                   | Shares Purchased as |                    |             | Number of Shares |                 
|            |  |                     |            |                   |                   | Part of             |                    |             | that May         |                 
|            |  |                     |            | (b) Average Price |                   |                     | Publicly Announced |             |                  | Yet Be Purchased |                   
|            |  | (a) Total Number of |            |                   | Paid per Share in |                     |                    | Plans or    |                  |                  | Under the Plans or |    
|Period 2005 |  | Shares Purchased    |            |                   | NOK               |                     |                    | Programs(1) |                  |                  | Programs(2)        |    
|            |  |                     |            |                   |                   |                     |                    |             |                  |                  |                    |    
|January     |  |                     |           |                   |                   |                     |                   |             |                  |                  |                   |     |  |  | 159,980,198 | 
|February    |  |                     |           |                   |                   |                     |                   |             |                  |                  |                   |     |  |  | 159,980,198 | 
|March       |  |                     | 5,620,000  |                   |                   |                     | 58.38              |             |                  |                  | 5,620,000          |     |  |  | 154,360,198 | 
|April       |  |                     |           |                   |                   |                     |                   |             |                  |                  |                   |     |  |  | 154,360,198 | 
|May         |  |                     | 789,000    |                   |                   |                     | 51.82              |             |                  |                  | 789,000            |     |  |  | 169,711,000 | 
|June        |  |                     | 5,625,000  |                   |                   |                     | 51.31              |             |                  |                  | 5,625,000          |     |  |  | 164,086,000 | 
|July        |  |                     |           |                   |                   |                     |                   |             |                  |                  |                   |     |  |  | 164,086,000 | 
|August      |  |                     | 4,850,000  |                   |                   |                     | 56.69              |             |                  |                  | 4,850,000          |     |  |  | 159,236,000 | 
|September   |  |                     | 2,580,000  |                   |                   |                     | 58.22              |             |                  |                  | 2,580,000          |     |  |  | 156,656,000 | 
|October     |  |                     |           |                   |                   |                     |                   |             |                  |                  |                   |     |  |  | 156,656,000 | 
|November    |  |                     |           |                   |                   |                     |                   |             |                  |                  |                   |     |  |  | 156,656,000 | 
|December    |  |                     |           |                   |                   |                     |                   |             |                  |                  |                   |     |  |  | 156,656,000 | 
|            |  |                     |            |                   |                   |                     |                    |             |                  |                  |                    |    
|Sum         |  |                     | 19,464,000 | (3)               |                   |                     | 55.38              |             |                  |                  | 19,464,000         | (3) |  |  |             | 
|            |  |                     |            |                   |                   |                     |                    |             |                  |                  |                    |    






|    |                                                                                                                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Shares purchased prior to May 2005 were purchased pursuant to
    the 2004 share buyback authorization. Shares purchased from
    May 2005 were purchased pursuant to the 2005 share buyback
    authorization.                                                              
|   
|(2) | Up until May 20, 2005, Telenor was authorized to purchase
    up to 10% of its own shares (approximately
    174,980,098 shares). Since May 20, 2005, Telenor has
    been authorized to purchase 170,500,000 of its own shares
    (approximately 10% of its share capital).
|   
|(3) | All shares were purchased in the open market and pursuant to the
    authorizations described above.                                                                                                                                                                         




PART III







|         |                     
|-------- | --------------------
|ITEM 17: | FINANCIAL STATEMENTS








|         |                     
|-------- | --------------------
|ITEM 18: | FINANCIAL STATEMENTS

F-1 20-F.


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|         |         
|-------- | --------
|ITEM 19: | EXHIBITS



|                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit 1       |  | Articles of Association for Telenor ASA, as amended on
    May 20, 2005 (English translation)                                                                                                                                                                                                                                                                                                                                        
|Exhibit 2(b)(i) |  | Instruments defining the Rights of Holders of Long-Term Debt:                                                                                                                                                                                                                                                                                                                                                                        
|                |  | Terms and conditions of Telenors US$6 billion Euro
    Medium-Term Notes program.(*) Excluding such program, the total
    amount of long-term debt securities of Telenor authorized under
    any instrument, does not exceed 10% of the total assets of
    Telenor on a consolidated basis. Telenor agrees to furnish
    copies of any or all such other instruments to the Securities
    and Exchange commission upon request.
|Exhibit 4(c)    |  | Form of Director/Group Management Employment Contract                                                                                                                                                                                                                                                                                                                                                                                
|Exhibit 8       |  | Subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                         
|Exhibit 12      |  | Certifications pursuant to Section 302 of the
    Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                         
|Exhibit 13      |  | Certifications pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                         




20-F


165



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SIGNATURE


20-F




| |                               
| | ------------------------------
| | Telenor ASA 
     (Registrant)



| |     |                     
| | --- | --------------------
| | By: | /s/ Trond Ø. Westlie



| |                        
| | -----------------------
| |                        
| | Trond Ø. Westlie       
| | Chief Financial Officer



166



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TELENOR ASA


INDEX TO CONSOLIDATED FINANCIAL STATEMENTS


|                                               |                                                                                                                  |  |      |     | 
|---------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- |  | ---- | --- | 
|TELENOR ASA                                    |                                                                                                                  |  |      |    
|Annual consolidated financial statements:      |                                                                                                                  |  |      |    
|Reports of Independent Accountants             |                                                                                                                  |  |      |    
|                                               | Report of Ernst & Young AS as of and for the years
    ended December 31, 2004 and 2005, dated
    April 6, 2006 |  |      | F-2 | 
|                                               | Report of Rahman Rahman Huq for the fiscal year ended
    December 31, 2005, dated April 3, 2006                 |  |      | F-3 | 
|Consolidated Statements of Profit and Loss     |                                                                                                                  |  | F-4  |    
|Consolidated Balance Sheet                     |                                                                                                                  |  | F-5  |    
|Consolidated Cash Flow Statement               |                                                                                                                  |  | F-6  |    
|Consolidated Statement of Changes in Equity    |                                                                                                                  |  | F-7  |    
|Summary of Significant Accounting Principles   |                                                                                                                  |  | F-9  |    
|Notes to the Consolidated Financial Statements |                                                                                                                  |  | F-22 |    

F-1



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















F-2



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM










/s/ Rahman Rahman Huq






F-3



---



##### Table of Contents



CONSOLIDATED STATEMENTS OF PROFIT AND LOSS


Telenor Group January 1  December 31


|                                                      |  |      |        |                  |      |  |        |      |  |  |        |  
|----------------------------------------------------- |  | ---- | ------ | ---------------- | ---- |  | ------ | ---- |  |  | ------ | -
|                                                      |  | Note |        |                  | 2004 |  |        | 2005 | 
|                                                      |  |      |        |                  |      |  |        |      | 
|                                                      |  |      |        | NOK in millions, |     
|                                                      |  |      |        | except per share |     
|                                                      |  |      |        | amounts          |     
|Revenues                                              |  |      | 2      |                  |      |  | 60,591 |      |  |  | 68,927 |  
|Operating expenses                                    |  |      |        |                  |      |  |        |      |  |  |        |  
|Costs of materials and traffic charges                |  |      | 4      |                  |      |  | 15,924 |      |  |  | 17,711 |  
|Own work capitalized                                  |  |      | 5      |                  |      |  | (557   | )    |  |  | (704   | )
|Salaries and personnel costs                          |  |      | 6,7    |                  |      |  | 9,970  |      |  |  | 10,236 |  
|Other operating expenses                              |  |      | 8      |                  |      |  | 13,871 |      |  |  | 17,606 |  
|Other (income) and expenses                           |  |      | 9      |                  |      |  | (152   | )    |  |  | 242    |  
|Depreciation and amortization                         |  |      | 15     |                  |      |  | 10,637 |      |  |  | 11,544 |  
|Write-downs                                           |  |      | 15, 17 |                  |      |  | 3,531  |      |  |  | 587    |  
|Operating profit                                      |  |      |        |                  |      |  | 7,367  |      |  |  | 11,705 |  
|Associated companies                                  |  |      | 18     |                  |      |  | 986    |      |  |  | 1,233  |  
|Financial income and expenses                         |  |      |        |                  |      |  |        |      |  |  |        |  
|Financial income                                      |  |      |        |                  |      |  | 496    |      |  |  | 447    |  
|Financial expenses                                    |  |      |        |                  |      |  | (1,561 | )    |  |  | (1,639 | )
|Net currency gains (losses)                           |  |      |        |                  |      |  | (87    | )    |  |  | 84     |  
|Change in fair value of financial instruments         |  |      |        |                  |      |  |        |      |  |  | 243    |  
|Net gains (losses and write-downs) of financial items |  |      |        |                  |      |  | 2,673  |      |  |  | 518    |  
|Net financial items                                   |  |      | 13     |                  |      |  | 1,521  |      |  |  | (347   | )
|Profit before taxes                                   |  |      |        |                  |      |  | 9,874  |      |  |  | 12,591 |  
|Taxes                                                 |  |      | 14     |                  |      |  | (2,461 | )    |  |  | (3,453 | )
|Profit from continuing operations                     |  |      |        |                  |      |  | 7,413  |      |  |  | 9,138  |  
|Profit (loss) from discontinued operations            |  |      | 1      |                  |      |  |       |      |  |  | (4     | )
|Profit from total operations                          |  |      |        |                  |      |  | 7,413  |      |  |  | 9,134  |  
|Attributable to:                                      |  |      |        |                  |      |  |        |      |  |  |        |  
|Non-controlling interests (Minority interests)        |  |      |        |                  |      |  | 1,320  |      |  |  | 1,488  |  
|Equity holders of Telenor ASA (Net income)            |  |      |        |                  |      |  | 6,093  |      |  |  | 7,646  |  
|                                                     
|Earnings per share in NOK                             |  |      |        |                  |      |  |        |      |  |  |        |  
|From continuing operations                            |  |      |        |                  |      |  |        |      |  |  |        |  
|Basic                                                 |  |      | 25     |                  |      |  | 3.49   |      |  |  | 4.47   |  
|Diluted                                               |  |      | 25     |                  |      |  | 3.48   |      |  |  | 4.47   |  
|From total operations                                 |  |      |        |                  |      |  |        |      |  |  |        |  
|Basic                                                 |  |      | 25     |                  |      |  | 3.49   |      |  |  | 4.47   |  
|Diluted                                               |  |      | 25     |                  |      |  | 3.48   |      |  |  | 4.47   |  

F-4



---



##### Table of Contents



CONSOLIDATED BALANCE SHEET


Telenor Group at December 31


|                                                       |  |      |    |                 |      |  |        |      |  |  |         | 
|------------------------------------------------------ |  | ---- | -- | --------------- | ---- |  | ------ | ---- |  |  | ------- | 
|                                                       |  | Note |    |                 | 2004 |  |        | 2005 | 
|                                                       |  |      |    |                 |      |  |        |      | 
|                                                       |  |      |    | NOK in millions |     
|Assets                                                 |  |      |    |                 |      |  |        |      |  |  |         | 
|Deferred tax assets                                    |  |      | 14 |                 |      |  | 3,357  |      |  |  | 3,052   | 
|Goodwill                                               |  |      | 16 |                 |      |  | 13,354 |      |  |  | 20,700  | 
|Other intangible assets                                |  |      | 16 |                 |      |  | 11,076 |      |  |  | 21,245  | 
|Property, plant and equipment                          |  |      | 16 |                 |      |  | 37,543 |      |  |  | 43,958  | 
|Associated companies                                   |  |      | 18 |                 |      |  | 6,602  |      |  |  | 7,424   | 
|Financial non-current assets                           |  |      | 20 |                 |      |  | 1,249  |      |  |  | 2,267   | 
|Total non current assets                               |  |      |    |                 |      |  | 73,181 |      |  |  | 98,646  | 
|                                                       |  |      |    |                 |      |  |        |      | 
|Current tax assets                                     |  |      |    |                 |      |  | 207    |      |  |  | 110     | 
|Inventories                                            |  |      |    |                 |      |  | 596    |      |  |  | 695     | 
|Trade and other receivables                            |  |      | 19 |                 |      |  | 11,487 |      |  |  | 13,852  | 
|Other financial current assets                         |  |      | 20 |                 |      |  | 844    |      |  |  | 3,619   | 
|Assets held for sale                                   |  |      | 1  |                 |      |  |       |      |  |  | 667     | 
|Cash and cash equivalents                              |  |      | 29 |                 |      |  | 5,081  |      |  |  | 6,806   | 
|Total current assets                                   |  |      |    |                 |      |  | 18,215 |      |  |  | 25,749  | 
|                                                       |  |      |    |                 |      |  |        |      | 
|Total assets                                           |  |      |    |                 |      |  | 91,396 |      |  |  | 124,395 | 
|                                                       |  |      |    |                 |      |  |        |      | 
|Equity and liabilities                                 |  |      |    |                 |      |  |        |      |  |  |         | 
|Equity attributable to equity holders of Telenor ASA   |  |      |    |                 |      |  | 40,122 |      |  |  | 46,399  | 
|Non-controlling interests (Minority interests)         |  |      |    |                 |      |  | 3,946  |      |  |  | 7,134   | 
|Total equity                                           |  |      |    |                 |      |  | 44,068 |      |  |  | 53,533  | 
|                                                       |  |      |    |                 |      |  |        |      | 
|                                                      
|Liabilities                                            |  |      |    |                 |      |  |        |      |  |  |         | 
|Non-current interest-bearing financial liabilities     |  |      | 22 |                 |      |  | 20,602 |      |  |  | 27,139  | 
|Non-current non-interest-bearing financial liabilities |  |      |    |                 |      |  | 573    |      |  |  | 580     | 
|Deferred tax liabilities                               |  |      | 14 |                 |      |  | 2,292  |      |  |  | 2,669   | 
|Provisions etc.                                        |  |      | 21 |                 |      |  | 3,188  |      |  |  | 3,368   | 
|                                                       |  |      |    |                 |      |  |        |      | 
|Total non-current liabilities                          |  |      |    |                 |      |  | 26,655 |      |  |  | 33,756  | 
|                                                       |  |      |    |                 |      |  |        |      | 
|Current interest-bearing financial liabilities         |  |      | 22 |                 |      |  | 3,991  |      |  |  | 11,908  | 
|Trade and other payables                               |  |      | 24 |                 |      |  | 15,175 |      |  |  | 20,827  | 
|Current tax liabilities                                |  |      |    |                 |      |  | 321    |      |  |  | 853     | 
|                                                       |  |      |    |                 |      |  |        |      | 
|Current non-interest bearing financial liabilities     |  |      | 24 |                 |      |  | 431    |      |  |  | 2,314   | 
|Liabilities held for sale                              |  |      | 1  |                 |      |  |       |      |  |  | 287     | 
|                                                       |  |      |    |                 |      |  |        |      | 
|Provisions etc.                                        |  |      | 21 |                 |      |  | 755    |      |  |  | 917     | 
|                                                       |  |      |    |                 |      |  |        |      | 
|Total current liabilities                              |  |      |    |                 |      |  | 20,673 |      |  |  | 37,106  | 
|                                                       |  |      |    |                 |      |  |        |      | 
|Total equity and liabilities                           |  |      |    |                 |      |  | 91,396 |      |  |  | 124,395 | 
|                                                       |  |      |    |                 |      |  |        |      | 

F-5



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##### Table of Contents



CONSOLIDATED CASH FLOW STATEMENT


Telenor Group January 1  December 31


|                                                                                              |  |      |    |                 |      |  |         |      |  |  |         |  
|--------------------------------------------------------------------------------------------- |  | ---- | -- | --------------- | ---- |  | ------- | ---- |  |  | ------- | -
|                                                                                              |  | Note |    |                 | 2004 |  |         | 2005 | 
|                                                                                              |  |      |    |                 |      |  |         |      | 
|                                                                                              |  |      |    | NOK in millions |     
|Proceeds from sale of goods and services                                                      |  |      |    |                 |      |  | 61,107  |      |  |  | 69,853  |  
|Payments to suppliers of goods and services and of other
    operating expenses               |  |      |    |                 |      |  | (30,639 | )    |  |  | (35,461 | )
|Payments to employees, pensions, social security tax and tax
    deductions                   |  |      |    |                 |      |  | (9,280  | )    |  |  | (9,635  | )
|Proceeds from interest income                                                                 |  |      |    |                 |      |  | 323     |      |  |  | 347     |  
|Proceeds from other financial income                                                          |  |      |    |                 |      |  | 590     |      |  |  | 162     |  
|Payments of interest expenses                                                                 |  |      |    |                 |      |  | (1,361  | )    |  |  | (1,563  | )
|Payments of other financial expenses                                                          |  |      |    |                 |      |  | (67     | )    |  |  | (49     | )
|Other proceeds and payments related to operating activities                                   |  |      |    |                 |      |  | (22     | )    |  |  | 4       |  
|Payment of income taxes and public duties                                                     |  |      |    |                 |      |  | (1,660  | )    |  |  | (1,318  | )
|Net cash flow from operating activities(1)                                                    |  |      |    |                 |      |  | 18,991  |      |  |  | 22,340  |  
|Proceeds from sale of property, plant and equipment and
    intangible assets                 |  |      |    |                 |      |  | 263     |      |  |  | 539     |  
|Purchase of property, plant and equipment and intangible assets                               |  |      |    |                 |      |  | (11,613 | )    |  |  | (14,213 | )
|Cash receipts from sale of subsidiaries and associated
    companies, net of cash sold        |  |      | 29 |                 |      |  | 849     |      |  |  | 740     |  
|Cash payments on purchase of subsidiaries and associated
    companies, net of cash purchased |  |      | 29 |                 |      |  | (6,281  | )    |  |  | (8,128  | )
|Proceeds from sale of other investments                                                       |  |      |    |                 |      |  | 3,960   |      |  |  | 1,539   |  
|Payments for other investments                                                                |  |      |    |                 |      |  | (209    | )    |  |  | (475    | )
|Net cash flow from investment activities                                                      |  |      |    |                 |      |  | (13,031 | )    |  |  | (19,998 | )
|Proceeds from non-current liabilities                                                         |  |      |    |                 |      |  | 2,486   |      |  |  | 5,718   |  
|Proceeds from current liabilities                                                             |  |      |    |                 |      |  | 55      |      |  |  | 6,057   |  
|Payments on non-current liabilities                                                           |  |      |    |                 |      |  | (6,044  | )    |  |  | (4,724  | )
|Payments on current liabilities                                                               |  |      |    |                 |      |  | (808    | )    |  |  | (2,876  | )
|Proceeds from issuance of shares, inclusive from minority
    interests                       |  |      |    |                 |      |  | 47      |      |  |  | 74      |  
|Shares buy back                                                                               |  |      |    |                 |      |  | (2,020  | )    |  |  | (2,267  | )
|Payment of equity and dividends to minorities in subsidiaries                                 |  |      |    |                 |      |  | (207    | )    |  |  | (219    | )
|Payment of dividends                                                                          |  |      |    |                 |      |  | (1,764  | )    |  |  | (2,595  | )
|Net cash flow from financing activities                                                       |  |      |    |                 |      |  | (8,255  | )    |  |  | (832    | )
|Effect on cash and cash equivalents of changes in foreign
    exchange rates                  |  |      |    |                 |      |  | (268    | )    |  |  | 215     |  
|Net change in cash and cash equivalents                                                       |  |      |    |                 |      |  | (2,563  | )    |  |  | 1,725   |  
|Cash and cash equivalents at January 1                                                        |  |      |    |                 |      |  | 7,644   |      |  |  | 5,081   |  
|Cash and cash equivalents at December 31                                                      |  |      | 29 |                 |      |  | 5,081   |      |  |  | 6,806   |  
|(1) Reconciliation                                                                            |  |      |    |                 |      |  |         |      |  |  |         |  
|Profit after taxes                                                                            |  |      |    |                 |      |  | 7,413   |      |  |  | 9,134   |  
|Profit after taxes from discontinued operations                                               |  |      |    |                 |      |  |        |      |  |  | 4       |  
|Taxes                                                                                         |  |      |    |                 |      |  | 2,461   |      |  |  | 3,453   |  
|Profit before taxes                                                                           |  |      |    |                 |      |  | 9,874   |      |  |  | 12,591  |  
|Income taxes paid                                                                             |  |      |    |                 |      |  | (1,516  | )    |  |  | (1,369  | )
|Net (gain) loss including write-downs and change in fair
    value of financial items         |  |      |    |                 |      |  | (3,161  | )    |  |  | (929    | )
|Depreciation, amortization and write-downs                                                    |  |      |    |                 |      |  | 14,168  |      |  |  | 12,131  |  
|Associated companies                                                                          |  |      |    |                 |      |  | (986    | )    |  |  | (1,233  | )
|Changes in inventories                                                                        |  |      |    |                 |      |  | (79     | )    |  |  | (37     | )
|Changes in accounts receivable and prepayments from customers                                 |  |      |    |                 |      |  | 95      |      |  |  | 1,659   |  
|Changes in accounts payable and prepaid expenses                                              |  |      |    |                 |      |  | 237     |      |  |  | 407     |  
|Difference between expensed and paid pensions                                                 |  |      |    |                 |      |  | 267     |      |  |  | 211     |  
|Currency (gains) losses not relating to operating activities                                  |  |      |    |                 |      |  | 57      |      |  |  | (18     | )
|Change in other accruals                                                                      |  |      |    |                 |      |  | 35      |      |  |  | (1,073  | )
|Net cash flow from operating activities                                                       |  |      |    |                 |      |  | 18,991  |      |  |  | 22,340  |  



F-6



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##### Table of Contents



CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2005


Telenor Group


|                                                                            |                                                          |                                               |        |   |           |  |                |          |   |  |             |   |  |       |      |          |          |  |        |        |   |  |       |     |   |  |        |       |  
|--------------------------------------------------------------------------- | -------------------------------------------------------- | --------------------------------------------- | ------ | - | --------- |  | -------------- | -------- | - |  | ----------- | - |  | ----- | ---- | -------- | -------- |  | ------ | ------ | - |  | ----- | --- | - |  | ------ | ----- | -
|                                                                            |                                                          | Attributable to equity holders of Telenor ASA |        |   |           |  |               
|                                                                            |                                                          |                                               |        |   |           |  |               
|                                                                            |                                                          | (1) Total                                     |        |   |           |  | (1) Cumulative |          |   |  |             |   |  |      
|                                                                            |                                                          | paid                                          |        |   | (1) Other |  |                | Retained |   |  | translation |   |  |       |      | Minority |          |  | Total  |       
|                                                                            |                                                          | capital                                       |        |   | reserves  |  |                | earnings |   |  | differences |   |  | Total |      |          | interest |  |        | equity |  
|                                                                            |                                                          |                                               |        |   |           |  |                |          |   |  |             |   |  |       |      |          |          |  |        |        |  
|                                                                            |                                                          | (NOK in millions)                             |       
|Balance as of January 1, 2004  Restated
    according to IFRS(2)           |                                                          |                                               | 29,311 |   |           |  | (732           | )        |   |  | 9,084       |   |  |       |     |          |          |  | 37,663 |        |   |  | 3,420 |     |   |  | 41,083 |      
|Translation differences                                                     |                                                          |                                               |       |   |           |  |               |          |   |  |            |   |  |       | (321 | )        |          |  | (321   | )      |   |  | (419  | )   |   |  | (740   | )    
|Business combinations and increased ownership interests in
    subsidiaries |                                                          |                                               |       |   |           |  | 871            |          |   |  |            |   |  |       |     |          |          |  | 871    |        |   |  |      |     |   |  | 871    |      
|Equity adjustments in associated companies                                  |                                                          |                                               |       |   |           |  | 62             |          |   |  |            |   |  |       |     |          |          |  | 62     |        |   |  |      |     |   |  | 62     |      
|Tax on items taken directly to or transferred from equity                   |                                                          |                                               |       |   |           |  | (253           | )        |   |  |            |   |  |       | (284 | )        |          |  | (537   | )      |   |  |      |     |   |  | (537   | )    
|Net income (loss) recognized directly in equity                             |                                                          |                                               |       |   |           |  | 680            |          |   |  |            |   |  |       | (605 | )        |          |  | 75     |        |   |  | (419  | )   |   |  | (344   | )    
|                                                                            |                                                          |                                               |        |   |           |  |                |          |   |  |             |   |  |       |      |          |          |  |        |        |  
|Profit for the year 2004                                                    |                                                          |                                               |       |   |           |  |               |          |   |  | 6,093       |   |  |       |     |          |          |  | 6,093  |        |   |  | 1,320 |     |   |  | 7,413  |      
|Total recognized income and expense for the period                          |                                                          |                                               |       |   |           |  | 680            |          |   |  | 6,093       |   |  |       | (605 | )        |          |  | 6,168  |        |   |  | 901   |     |   |  | 7,069  |      
|                                                                            |                                                          |                                               |        |   |           |  |                |          |   |  |             |   |  |       |      |          |          |  |        |        |  
|Dividends                                                                   |                                                          |                                               |       |   |           |  |               |          |   |  | (1,764      | ) |  |       |     |          |          |  | (1,764 | )      |   |  | (373  | )   |   |  | (2,137 | )    
|Share buy back                                                              |                                                          |                                               | (2,020 | ) |           |  |               |          |   |  |            |   |  |       |     |          |          |  | (2,020 | )      |   |  |      |     |   |  | (2,020 | )    
|Sale of shares, share issue, and share options to employees                 |                                                          |                                               | 59     |   |           |  | 16             |          |   |  |            |   |  |       |     |          |          |  | 75     |        |   |  | 3     |     |   |  | 78     |      
|Transactions with minorities in subsidiaries                                |                                                          |                                               |       |   |           |  |               |          |   |  |            |   |  |       |     |          |          |  |       |        |   |  | (5    | )   |   |  | (5     | )    
|Balance as of December 31, 2004                                             |                                                          |                                               | 27,350 |   |           |  | (36            | )        |   |  | 13,413      |   |  |       | (605 | )        |          |  | 40,122 |        |   |  | 3,946 |     |   |  | 44,068 |      
|                                                                            |                                                          |                                               |        |   |           |  |                |          |   |  |             |   |  |       |      |          |          |  |        |        |  
|Total changes in accounting policy (IAS 32 and 39)(2)                       |                                                          |                                               |       |   |           |  | 661            |          |   |  | (208        | ) |  |       |     |          |          |  | 453    |        |   |  | 8     |     |   |  | 461    |      
|Adjusted equity as of January 1, 2005                                       |                                                          |                                               | 27,350 |   |           |  | 625            |          |   |  | 13,205      |   |  |       | (605 | )        |          |  | 40,575 |        |   |  | 3,954 |     |   |  | 44,529 |      
|                                                                            |                                                          |                                               |        |   |           |  |                |          |   |  |             |   |  |       |      |          |          |  |        |        |  
|Translation differences                                                     |                                                          |                                               |       |   |           |  |               |          |   |  |            |   |  |       | 525  |          |          |  | 525    |        |   |  | 441   |     |   |  | 966    |      
|Business combinations and increased ownership interests in
    subsidiaries |                                                          |                                               |       |   |           |  | 1,829          |          |   |  |            |   |  |       |     |          |          |  | 1,829  |        |   |  |      |     |   |  | 1,829  |      
|Available-for-sale investments:                                             |                                                          |                                               |       |   |           |  |               |          |   |  |            |   |  |       |     |          |          |  |       |        |   |  |      |     |   |  |       |      
|                                                                            |  Valuation gains (losses) taken to equity               |                                               |        |  |           |  |                | 1,440    |   |  |             |  |  |       |      |         |          |  |        | 1,440  |   |  |       | 20  |   |  |        | 1,460 |  
|                                                                            |  Transferred to profit or loss on sale                  |                                               |        |  |           |  |                | (388     | ) |  |             |  |  |       |      |         |          |  |        | (388   | ) |  |       | (24 | ) |  |        | (412  | )
|Cash flow hedges:                                                           |                                                          |                                               |       |   |           |  |               |          |   |  |            |   |  |       |     |          |          |  |       |        |   |  |      |     |   |  |       |      
|                                                                            |  Valuation gains (losses) taken to equity               |                                               |        |  |           |  |                | (172     | ) |  |             |  |  |       |      |         |          |  |        | (172   | ) |  |       | 3   |   |  |        | (169  | )
|                                                                            |  Transferred to profit or loss for the period           |                                               |        |  |           |  |                | (13      | ) |  |             |  |  |       |      |         |          |  |        | (13    | ) |  |       |    |   |  |        | (13   | )
|                                                                            |  Transferred to initial carrying amount of hedged items |                                               |        |  |           |  |                | 209      |   |  |             |  |  |       |      |         |          |  |        | 209    |   |  |       |    |   |  |        | 209   |  
|Equity adjustments in associated companies                                  |                                                          |                                               |       |   |           |  | 1              |          |   |  |            |   |  |       |     |          |          |  | 1      |        |   |  |      |     |   |  | 1      |      
|Tax on items taken directly to or transferred from equity                   |                                                          |                                               |       |   |           |  | (459           | )        |   |  |            |   |  |       | (12  | )        |          |  | (471   | )      |   |  | (1    | )   |   |  | (472   | )    
|Net income (loss) recognized directly in equity                             |                                                          |                                               |       |   |           |  | 2,447          |          |   |  |            |   |  |       | 513  |          |          |  | 2,960  |        |   |  | 439   |     |   |  | 3,399  |      
|                                                                            |                                                          |                                               |        |   |           |  |                |          |   |  |             |   |  |       |      |          |          |  |        |        |  
|Profit for the period                                                       |                                                          |                                               |       |   |           |  |               |          |   |  | 7,646       |   |  |       |     |          |          |  | 7,646  |        |   |  | 1,488 |     |   |  | 9,134  |      
|Total recognized income and expenses for the period                         |                                                          |                                               |       |   |           |  | 2,447          |          |   |  | 7,646       |   |  |       | 513  |          |          |  | 10,606 |        |   |  | 1,927 |     |   |  | 12,533 |      
|                                                                            |                                                          |                                               |        |   |           |  |                |          |   |  |             |   |  |       |      |          |          |  |        |        |  
|Dividends                                                                   |                                                          |                                               |       |   |           |  |               |          |   |  | (2,595      | ) |  |       |     |          |          |  | (2,595 | )      |   |  | (171  | )   |   |  | (2,766 | )    
|Share buy back                                                              |                                                          |                                               | (2,267 | ) |           |  |               |          |   |  |            |   |  |       |     |          |          |  | (2,267 | )      |   |  |      |     |   |  | (2,267 | )    
|Sale of shares, share issue, and share options to employees                 |                                                          |                                               | 74     |   |           |  | 6              |          |   |  |            |   |  |       |     |          |          |  | 80     |        |   |  | 5     |     |   |  | 85     |      
|Transactions with minorities in subsidiaries                                |                                                          |                                               |       |   |           |  |               |          |   |  |            |   |  |       |     |          |          |  |       |        |   |  | 1,419 |     |   |  | 1,419  |      
|Balance as of December 31, 2005                                             |                                                          |                                               | 25,157 |   |           |  | 3,078          |          |   |  | 18,256      |   |  |       | (92  | )        |          |  | 46,399 |        |   |  | 7,134 |     |   |  | 53,533 |      
|                                                                            |                                                          |                                               |        |   |           |  |                |          |   |  |             |   |  |       |      |          |          |  |        |        |  






|    |            
|--- | -----------
|(1) | See note 36
|   
|(2) | See note 37

F-7



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##### Table of Contents



|                                                                   |  |      |      |  |      |  |      | 
|------------------------------------------------------------------ |  | ---- | ---- |  | ---- |  | ---- | 
|Dividends                                                          |  | 2004 |      |  | 2005 | 
|                                                                   |  |      |      |  |      | 
|Dividend per share in NOK  paid                                   |  |      | 1.00 |  |      |  | 1.50 | 
|Dividend per share in NOK  proposed by the Board of
    Directors |  |      | 1.50 |  |      |  | 2.00 | 







Non-controlling (Minority) interests


|                         |  |                   |           |  |             |  |       |              |             |          |              |         |  |              |       |  |               |  |       |  |  |  |       | 
|------------------------ |  | ----------------- | --------- |  | ----------- |  | ----- | ------------ | ----------- | -------- | ------------ | ------- |  | ------------ | ----- |  | ------------- |  | ----- |  |  |  | ----- | 
|                         |  |                   |           |  |             |  |       |              |             | Minority |              |         | 
|                         |  |                   |           |  |             |  |       | Minority     |             |          | interests    |         |  | Minority     |      
|                         |  |                   |           |  |             |  |       | interests in |             |          | in the       |         |  | interests in |      
|                         |  | Minority          |           |  |             |  |       |              | the balance |          |              | balance |  |              | the   | 
|                         |  | share in %        |           |  | Minority    |  |       | Minority     |             |          | sheet        |         |  | sheet        |       |  | balance sheet | 
|                         |  | December 31,      |           |  | part of net |  |       | part of net  |             |          | December 31, |         |  | January 1,   |       |  | December 31,  | 
|                         |  | 2005              |           |  | income 2005 |  |       | income 2004  |             |          | 2005         |         |  | 2005         |       |  | 2004          | 
|                         |  |                   |           |  |             |  |       |              |             |          |              |         |  |              |       |  |               | 
|                         |  | (NOK in millions) |          
|Kyivstar GSM JSC         |  |                   | 43.5      |  |             |  | 827   |              |             |          | 588          |         |  |              | 2,348 |  |               |  | 1,255 |  |  |  | 1,255 | 
|DiGi.Com bhd             |  |                   | 39.0      |  |             |  | 288   |              |             |          | 187          |         |  |              | 1,645 |  |               |  | 1,190 |  |  |  | 1,190 | 
|GrameenPhone Ltd.        |  |                   | 38.0      |  |             |  | 219   |              |             |          | 410          |         |  |              | 648   |  |               |  | 528   |  |  |  | 528   | 
|DTAC/ UCOM               |  |                   | 25.0/13.8 |  |             |  | 42    |              |             |          |             |         |  |              | 1,345 |  |               |  |      |  |  |  |      | 
|EDB Business Partner ASA |  |                   | 48.2      |  |             |  | 89    |              |             |          | 111          |         |  |              | 856   |  |               |  | 788   |  |  |  | 788   | 
|Telenor Venture IV AS    |  |                   | 49.0      |  |             |  | 5     |              |             |          |             |         |  |              | 155   |  |               |  | 60    |  |  |  | 52    | 
|Other                    |  |                   |          |  |             |  | 18    |              |             |          | 24           |         |  |              | 137   |  |               |  | 133   |  |  |  | 133   | 
|                         |  |                   |           |  |             |  |       |              |             |          |              |         |  |              |       |  |               | 
|Total                    |  |                   |           |  |             |  | 1,488 |              |             |          | 1,320        |         |  |              | 7,134 |  |               |  | 3,954 |  |  |  | 3,946 | 
|                         |  |                   |           |  |             |  |       |              |             |          |              |         |  |              |       |  |               | 





Telenor Group


General information






F-8



---



##### Table of Contents







Adoption of International Financial Reporting Standards






Summary of significant accounting policies






| |                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------
| | IAS 19 Employee Benefits  amendments issued in
    December 2004 (shall be applied from the year beginning on
    January 1, 2006)          
|
| | IAS 1 Amendment (August 2005)  Capital Disclosures
    (shall be applied from the year beginning on January 1,
    2007)                    
|
| | IAS 39  Cash Flow Hedge Accounting of Forecast
    Intragroup Transactions (shall be applied from the year
    beginning on January 1, 2006)
|
| | IFRS 7 Financial Instruments  Disclosures (shall be
    applied from the year beginning on January 1, 2007)                                 





Basis of consolidation and non-controlling interests






F-9



---



##### Table of Contents





Business combinations












Investments in associated companies










F-10



---



##### Table of Contents





Goodwill and cash generating units












Non-current assets held for sale and discontinued
operations








Revenue recognition and measurement






F-11



---



##### Table of Contents





| |   |                                                                                                                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Services: traffic fees, subscription and connection fees,
    interconnection fees, fees for leased lines and leased networks,
    fees for data network services, fees for TV distribution and
    satellite services,
    IT-operations,
|
| |  | customer equipment: Telephony handsets, PCs, terminals,
    set-top boxes etc., and                                                                                                                                                       
|
| |  | software                                                                                                                                                                                                                                  





Connection fees






Multiple element arrangements




Sale of software




Discounts






F-12



---



##### Table of Contents





Interest and dividend income




Pensions










Leasing






The Group as lessor




F-13



---



##### Table of Contents



The Group as lessee






Foreign currency translation






Derivative financial instruments and hedging








F-14



---



##### Table of Contents







Fair value hedges










Cash flow hedges










Hedges of a net investment




Income taxes




F-15



---



##### Table of Contents











Current/non-current




Trade receivables




Investments






Cash and cash equivalents




Interest-bearing liabilities




F-16



---



##### Table of Contents





Costs related to connection fees




Inventories




Advertising costs, marketing and sales commissions




Property, plant and equipment












Research and development costs






Impairment of property, plant and equipment and intangible
assets excluding goodwill




F-17



---



##### Table of Contents









Assets retirement obligations




Share options and employee stock ownership program












Provisions




F-18



---



##### Table of Contents





Cash Flow Statement




Non-monetary transactions






Critical accounting judgments and key sources of estimation
uncertainty


Critical judgments in applying the entitys accounting
policies




Key sources of estimation uncertainty  critical
accounting estimates






Revenue recognition.


F-19



---



##### Table of Contents





Impairment.




Depreciation and amortization.


Business combinations.


Income taxes.


F-20



---



##### Table of Contents





Pension costs, pension obligations and pension plan
assets.


Legal proceedings, claims and regulatory discussions.


F-21



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL STATEMENT


Telenor Group




|   |                                    
|-- | -----------------------------------
|1. | BUSINESS COMBINATIONS AND DISPOSALS



Significant acquisitions in 2005


|                 |  |                   |          |           |           |  |           |          |          |  |                          |  |  |  |       | 
|---------------- |  | ----------------- | -------- | --------- | --------- |  | --------- | -------- | -------- |  | ------------------------ |  |  |  | ----- | 
|                 |  |                   |          | Change in |           |  |           |          | Purchase | 
|Company          |  | Country           |          |           | interest% |  |           | Business |          |  | price                    | 
|                 |  |                   |          |           |           |  |           |          |          |  |                          | 
|                 |  | (NOK in millions) |         
|DTAC/ UCOM       |  |                   | Thailand |           |           |  | 3.5%/61.3 | %        |          |  | Mobil telecommunications |  |  |  | 2.664 | 
|Bredbandsbolaget |  |                   | Sweden   |           |           |  | 100       | %        |          |  | Broadband operation      |  |  |  | 4.452 | 
|Cybercity        |  |                   | Denmark  |           |           |  | 100       | %        |          |  | Broadband operation      |  |  |  | 1.313 | 

Business Combinations




Total Access Communication Ltd (DTAC) and United
Communication Industry Pcl (UCOM).










F-22



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                                 |  |                   |       | 
|---------------------------------------------------------------- |  | ----------------- | ----- | 
|                                                                 |  | Estimated fair   
|                                                                 |  | values           
|                                                                 |  |                  
|                                                                 |  | (NOK in millions)
|Deferred tax assets                                              |  |                   | 799   | 
|Customer Base                                                    |  |                   | 1,278 | 
|Consession Rights                                                |  |                   | 6,118 | 
|Trademarks                                                       |  |                   | 1,030 | 
|Software                                                         |  |                   | 247   | 
|Roaming agreements                                               |  |                   | 753   | 
|Property, plant & equipment                                      |  |                   | 738   | 
|Non-current financial assets                                     |  |                   | 147   | 
|Currents assets excluding cash and cash equivalents              |  |                   | 1,639 | 
|Assets held for sale                                             |  |                   | 531   | 
|Cash and cash equivalents                                        |  |                   | 200   | 
|Deferred tax liability                                           |  |                   | 43    | 
|Non-current liabilities                                          |  |                   | 5,752 | 
|Current liabilities                                              |  |                   | 3,473 | 
|Liabilities held for sale                                        |  |                   | 285   | 
|Net assets                                                       |  |                   | 3,927 | 
|Goodwill                                                         |  |                   | 2,243 | 
|                                                                 |  |                   |       | 
|Total                                                            |  |                   | 6,170 | 
|                                                                 |  |                   |       | 
|Total consideration, satisfied by cash                           |  |                   | 2,664 | 
|Book value as associated companies at the date of consolidation  |  |                   | 940   | 
|Increased values in business combination recorded against equity |  |                   | 1,274 | 
|Minorities at fair values                                        |  |                   | 1,292 | 
|                                                                 |  |                   |       | 
|Total                                                            |  |                   | 6,170 | 
|                                                                 |  |                   |       | 







F-23



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Bredbandsbolaget, Sweden




digital-TV




|                                                    |  |                       |       | 
|--------------------------------------------------- |  | --------------------- | ----- | 
|                                                    |  | Estimated fair values
|                                                    |  |                      
|                                                    |  | (NOK in millions)    
|Customer Base                                       |  |                       | 313   | 
|Trademarks                                          |  |                       | 140   | 
|Software/ Other intangible assets                   |  |                       | 321   | 
|Property, plant & equipment                         |  |                       | 205   | 
|Currents assets excluding cash and cash equivalents |  |                       | 345   | 
|Cash and cash equivalents                           |  |                       | 239   | 
|Deferred tax liability                              |  |                       | 11    | 
|Non-current liabilities                             |  |                       | 1,050 | 
|Current liabilities                                 |  |                       | 459   | 
|Net assets                                          |  |                       | 43    | 
|Goodwill                                            |  |                       | 4,409 | 
|                                                    |  |                       |       | 
|Total consideration, satisfied by cash              |  |                       | 4,452 | 
|                                                    |  |                       |       | 







Cybercity, Denmark






F-24



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                    |  |                       |       | 
|--------------------------------------------------- |  | --------------------- | ----- | 
|                                                    |  | Estimated fair values
|                                                    |  |                      
|                                                    |  | (NOK in millions)    
|Customer Base                                       |  |                       | 235   | 
|Trademarks                                          |  |                       | 90    | 
|Software                                            |  |                       | 91    | 
|Property, plant & equipment                         |  |                       | 45    | 
|Currents Assets excluding cash and cash equivalents |  |                       | 186   | 
|Cash and cash equivalents                           |  |                       | 42    | 
|Deferred tax liability                              |  |                       | 78    | 
|Non-current liabilities                             |  |                       | 155   | 
|Current liabilities                                 |  |                       | 200   | 
|Net assets                                          |  |                       | 256   | 
|Goodwill                                            |  |                       | 1,057 | 
|                                                    |  |                       |       | 
|Total consideration, satisfied by cash              |  |                       | 1,313 | 
|                                                    |  |                       |       | 







Vodafone, Sweden






F-25



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                    |  |                       |       | 
|--------------------------------------------------- |  | --------------------- | ----- | 
|                                                    |  | Estimated fair values
|                                                    |  |                      
|                                                    |  | (NOK in millions)    
|Deferred tax assets                                 |  |                       | 41    | 
|Roaming agreements                                  |  |                       | 584   | 
|Terminal supply contracts                           |  |                       | 337   | 
|Software                                            |  |                       | 965   | 
|Property, plant & equipment                         |  |                       | 5,251 | 
|Non-current financial assets                        |  |                       | 148   | 
|Currents assets excluding cash and cash equivalents |  |                       | 1,808 | 
|Cash and cash equivalents                           |  |                       | 176   | 
|Deferred tax liabilities                            |  |                       | 1,075 | 
|Non-current liabilities                             |  |                       | 1,168 | 
|Current liabilities                                 |  |                       | 1,142 | 
|Net assets                                          |  |                       | 5,925 | 
|Goodwill                                            |  |                       | 1,612 | 
|                                                    |  |                       |       | 
|Total consideration, satisfied by cash              |  |                       | 7,537 | 
|                                                    |  |                       |       | 



Disposals in 2005




|                                                   |  |                   |     | 
|-------------------------------------------------- |  | ----------------- | --- | 
|                                                   |  | (NOK in millions)
|Intangible assets                                  |  |                   | 34  | 
|Property, plant & equipment                        |  |                   | 71  | 
|Current assets excluding cash and cash equivalents |  |                   | 37  | 
|                                                   |  |                   |     | 
|Cash and cash equivalents                          |  |                   | 23  | 
|                                                   |  |                   |     | 
|Total assets                                       |  |                   | 165 | 
|                                                   |  |                   |     | 
|Non-current liabilities                            |  |                   | 29  | 
|Current liabilities                                |  |                   | 3   | 
|                                                   |  |                   |     | 
|Total liabilities                                  |  |                   | 32  | 
|                                                   |  |                   |     | 

F-26



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group






Discontinued Operations




Pro forma Information (unaudited)




|                                                    |  |                   |        |  |      |  |        | 
|--------------------------------------------------- |  | ----------------- | ------ |  | ---- |  | ------ | 
|                                                    |  | 2004              |        |  | 2005 | 
|                                                    |  |                   |        |  |      | 
|                                                    |  | (NOK in millions, |       
|                                                    |  | except per share  |       
|                                                    |  | amounts)          |       
|Pro forma revenues                                  |  |                   | 68,435 |  |      |  | 75,532 | 
|Pro forma profit before taxes and minority interest |  |                   | 9,460  |  |      |  | 12,563 | 
|Pro forma net income                                |  |                   | 5,900  |  |      |  | 7,473  | 
|Pro forma net income per share in NOK               |  |                   | 3.37   |  |      |  | 4.37   | 



Significant acquisitions in 2004


|                                          |  |         |               |           |            |  |       |           |          |                                    |                      |  |     |  |       | 
|----------------------------------------- |  | ------- | ------------- | --------- | ---------- |  | ----- | --------- | -------- | ---------------------------------- | -------------------- |  | --- |  | ----- | 
|                                          |  |         |               | Change in |            |  |       |           | Purchase |                                   
|Company                                   |  | Country |               |           | interest % |  |       | Business  |          |                                    | price                | 
|                                          |  |         |               |           |            |  |       |           |          |                                    |                      | 
|                                          |  |         |               |           |            |  |       | (NOK in   |         
|                                          |  |         |               |           |            |  |       | millions) |         
|Sonofon Holding A/ S                      |  |         | Denmark       |           |            |  | 46.5  |           |          |                                    | Mobile Communication |  |     |  | 3,639 | 
|European Telecom Luxemburg SA. (ProMonte) |  |         | Montenegro    |           |            |  | 55.9  |           |          |                                    | Mobile Communication |  |     |  | 541   | 
|GrameenPhone Ltd.                         |  |         | Bangladesh    |           |            |  | 11.0  |           |          |                                    | Mobile Communication |  |     |  | 298   | 
|CBB A/ S                                  |  |         | Denmark       |           |            |  | 100.0 |           |          |                                    | Mobile Communication |  |     |  | 147   | 
|GMPCS Personal Communication Inc          |  |         | USA           |           |            |  | 100.0 |           |          | Satellite Mobile Communications    |                      |  | 85  | 
|Utfors AB(1)                              |  |         | Sweden        |           |            |  | 8.3   |           |          |                                    | Telecommunication    |  |     |  | 70    | 
|IT  operation(2)                         |  |         | Norway/Sweden |           |            |  | 100.0 |           |          | Operation and application services |                      |  | 738 | 

F-27



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group







|    |                                                                             
|--- | ----------------------------------------------------------------------------
|(1) | Telenor owned 100% of the shares in the company as of
    December 31, 2004.
|   
|(2) | Asset purchased by EDB Business Partner ASA.                                

Acquisition of Sonofon Holding A/ S in 2004






|                                                                 |  |                       |       | 
|---------------------------------------------------------------- |  | --------------------- | ----- | 
|                                                                 |  | Estimated fair values
|                                                                 |  |                      
|                                                                 |  | (NOK in millions)    
|Property, plant & equipment                                      |  |                       | 2,717 | 
|Customer base                                                    |  |                       | 1,158 | 
|Licences                                                         |  |                       | 48    | 
|Trademarks                                                       |  |                       | 801   | 
|Software                                                         |  |                       | 1,130 | 
|Roaming agreements                                               |  |                       | 534   | 
|Currents assets excluding cash and cash equivalents              |  |                       | 1,137 | 
|Cash and cash equivalents                                        |  |                       | 52    | 
|Deferred tax liability                                           |  |                       | 990   | 
|Non-current liabilities                                          |  |                       | 3,041 | 
|Current liabilities                                              |  |                       | 1,825 | 
|                                                                 |  |                       |       | 
|Net assets                                                       |  |                       | 1,721 | 
|Goodwill                                                         |  |                       | 6,512 | 
|                                                                 |  |                       |       | 
|Total                                                            |  |                       | 8,233 | 
|Total consideration, satisfied by cash(2)                        |  |                       | 3,639 | 
|Book value as an associated company at the date of consolidation |  |                       | 3,985 | 
|Increased values in business combination recorded against equity |  |                       | 609   | 
|                                                                 |  |                       |       | 
|Total                                                            |  |                       | 8,233 | 
|                                                                 |  |                       |       | 

F-28



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group







|    |                                                                                                                                                                                                                                                                                                          
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | These figures include consideration for the last acquisition and
    the carrying value for the prior investment, when the company
    was accounted for using the equity method. They reflect the
    final purchase price allocation that differs in some respects
    from the preliminary allocation.
|   
|(2) | Does not include assumed liabilities of NOK 0.8 billion
    from the former owner of the shares.                                                                                                                                                                                                         





Pro forma information (unaudited)




|                                                     |  |                   |        | 
|---------------------------------------------------- |  | ----------------- | ------ | 
|                                                     |  | 2004              |       
|                                                     |  |                   |       
|                                                     |  | (NOK in millions, |       
|                                                     |  | except per share  |       
|                                                     |  | amounts)          |       
|Pro forma revenues                                   |  |                   | 62,407 | 
|Pro forma profit before taxes and minority interests |  |                   | 9,674  | 
|Pro forma net income                                 |  |                   | 5.964  | 
|Pro forma net income per share in NOK                |  |                   | 3.41   | 



Disposals in 2004






F-29



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|   |         
|-- | --------
|2. | REVENUES

|                                           |  |                   |        |  |      |  |        | 
|------------------------------------------ |  | ----------------- | ------ |  | ---- |  | ------ | 
|                                           |  | 2004              |        |  | 2005 | 
|                                           |  |                   |        |  |      | 
|                                           |  | (NOK in millions) |       
|Analog (PSTN)/digital (ISDN, ADSL and BBT) |  |                   | 14,284 |  |      |  | 14,125 | 
|Mobile telephony                           |  |                   | 28,775 |  |      |  | 36,972 | 
|Leased lines                               |  |                   | 1,015  |  |      |  | 959    | 
|Satellite and TV-distribution              |  |                   | 7,344  |  |      |  | 7,514  | 
|Other network based activities             |  |                   | 2,234  |  |      |  | 2,096  | 
|Customer equipment                         |  |                   | 1,607  |  |      |  | 1,580  | 
|IT operations and sale of software         |  |                   | 4,045  |  |      |  | 4,501  | 
|Other                                      |  |                   | 1,287  |  |      |  | 1,180  | 
|Revenues                                   |  |                   | 60,591 |  |      |  | 68,927 | 

Analog (PSTN)/digital (ISDN, ADSL and Broadband telephony
(BBT))


Mobile telephony


Leased lines


Satellite TV-distribution


Other network-based activities


Customer equipment


IT operations and sale of software


Other






|   |                     
|-- | --------------------
|3. | KEY FIGURES SEGMENTS



F-30



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group
















F-31



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




Profit and loss 2005


|                          |  |                   |        |          |          |  |        |               |                  |  |             |           |  |                  |            |  |           |               |        |       |        |  |       |   |  |  |      |   |  |  |        |  
|------------------------- |  | ----------------- | ------ | -------- | -------- |  | ------ | ------------- | ---------------- |  | ----------- | --------- |  | ---------------- | ---------- |  | --------- | ------------- | ------ | ----- | ------ |  | ----- | - |  |  | ---- | - |  |  | ------ | -
|                          |  |                   |        |          |          |  |        | Depreciation, |                  |  |             |           |  |                  | Net        |  |           | Profit (loss) |       
|                          |  |                   |        | External |          |  |        |               | amortization and |  |             | Operating |  |                  | Associated |  |           | financial     |        |       | before | 
|                          |  | Revenues          |        |          | revenues |  |        | EBITDA(1)     |                  |  | write-downs |           |  | profit (loss)(2) |            |  | companies |               |        | items |        |  | taxes |  
|                          |  |                   |        |          |          |  |        |               |                  |  |             |           |  |                  |            |  |           |               |        |       |        |  |       |  
|                          |  | (NOK in millions) |       
|Telenor Mobil  Norway    |  |                   | 12,243 |          |          |  | 11,072 |               |                  |  | 4,471       |           |  |                  | 905        |  |           |               | 3,566  |       |        |  | 32    |   |  |  | 65   |   |  |  | 3,663  |  
|Sonofon  Denmark         |  |                   | 5,191  |          |          |  | 5,059  |               |                  |  | 1,176       |           |  |                  | 1,285      |  |           |               | (109   | )     |        |  | 1     |   |  |  | (175 | ) |  |  | (283   | )
|Kyivstar  Ukraine        |  |                   | 7,272  |          |          |  | 7,266  |               |                  |  | 4,050       |           |  |                  | 1,224      |  |           |               | 2,826  |       |        |  |      |   |  |  | (144 | ) |  |  | 2,682  |  
|Pannon GSM  Hungary      |  |                   | 6,061  |          |          |  | 6,051  |               |                  |  | 2,185       |           |  |                  | 1,178      |  |           |               | 1,007  |       |        |  |      |   |  |  | 107  |   |  |  | 1,114  |  
|DiGi.Com  Malaysia       |  |                   | 4,932  |          |          |  | 4,928  |               |                  |  | 2,142       |           |  |                  | 1,043      |  |           |               | 1,099  |       |        |  |      |   |  |  | (24  | ) |  |  | 1,075  |  
|GrameenPhone  Bangladesh |  |                   | 2,970  |          |          |  | 2,969  |               |                  |  | 1,559       |           |  |                  | 439        |  |           |               | 1,120  |       |        |  |      |   |  |  | (109 | ) |  |  | 1,011  |  
|Other mobile operations   |  |                   | 2,219  |          |          |  | 2,076  |               |                  |  | (343        | )         |  |                  | 611        |  |           |               | (954   | )     |        |  | 1,355 |   |  |  | (68  | ) |  |  | 333    |  
|Fixed                     |  |                   | 19,313 |          |          |  | 17,140 |               |                  |  | 5,885       |           |  |                  | 3,823      |  |           |               | 2,062  |       |        |  | (142  | ) |  |  | (517 | ) |  |  | 1,403  |  
|Broadcast                 |  |                   | 5,649  |          |          |  | 5,518  |               |                  |  | 1,516       |           |  |                  | 501        |  |           |               | 1,015  |       |        |  | 73    |   |  |  | 190  |   |  |  | 1,278  |  
|Other operations          |  |                   | 9,967  |          |          |  | 7,060  |               |                  |  | 1,091       |           |  |                  | 1,043      |  |           |               | 48     |       |        |  | (87   | ) |  |  | 123  |   |  |  | 84     |  
|Eliminations              |  |                   | (6,890 | )        |          |  | (212   | )             |                  |  | 104         |           |  |                  | 79         |  |           |               | 25     |       |        |  | 1     |   |  |  | 205  |   |  |  | 231    |  
|                          |  |                   |        |          |          |  |        |               |                  |  |             |           |  |                  |            |  |           |               |        |       |        |  |       |  
|Total                     |  |                   | 68,927 |          |          |  | 68,927 |               |                  |  | 23,836      |           |  |                  | 12,131     |  |           |               | 11,705 |       |        |  | 1,233 |   |  |  | (347 | ) |  |  | 12,591 |  
|                          |  |                   |        |          |          |  |        |               |                  |  |             |           |  |                  |            |  |           |               |        |       |        |  |       |  






|    |                                                             
|--- | ------------------------------------------------------------
|(1) | See table below for definition and reconciliation of EBITDA.
|   
|(2) | The segment result is the operating profit (loss).          

Definition and reconciliation of EBITDA


|                                                |  |                   |        |   |      |  |        |  
|----------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                                                |  | 2004              |        |   | 2005 | 
|                                                |  |                   |        |   |      | 
|                                                |  | (NOK in millions) |       
|Profit after taxes                              |  |                   | 7,413  |   |      |  | 9,134  |  
|Profit after taxes from discontinued operations |  |                   |       |   |      |  | (4     | )
|Profit after taxes from continuing operations   |  |                   | 7,413  |   |      |  | 9,138  |  
|Taxes                                           |  |                   | (2,461 | ) |      |  | (3,453 | )
|Profit before taxes                             |  |                   | 9,874  |   |      |  | 12,591 |  
|Net financial items                             |  |                   | 1,521  |   |      |  | (347   | )
|Associated companies                            |  |                   | 986    |   |      |  | 1,233  |  
|Operating profit                                |  |                   | 7,367  |   |      |  | 11,705 |  
|Depreciation and amortization                   |  |                   | 10,637 |   |      |  | 11,544 |  
|Write-downs                                     |  |                   | 3,531  |   |      |  | 587    |  
|EBITDA                                          |  |                   | 21,535 |   |      |  | 23,836 |  

F-32



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Balance sheet items and investments as of December 31,
2005


|                          |  |                   |         |            |  |         |       |        |  |             |        |             |  |             |         |   |  |  |         |   |  |  |         |   |  |  |        |  
|------------------------- |  | ----------------- | ------- | ---------- |  | ------- | ----- | ------ |  | ----------- | ------ | ----------- |  | ----------- | ------- | - |  |  | ------- | - |  |  | ------- | - |  |  | ------ | -
|                          |  |                   |         |            |  |         |       |        |  | Non-current |        |             |  |            
|                          |  | Other non-        |         |            |  |         |       |        |  | liabilities |        |             |  |            
|                          |  | current           |         | Associated |  | Current |       | Total  |  | incl.       |        | Current     |  |            
|                          |  | assets            |         | companies  |  | assets  |       | assets |  | provisions  |        | liabilities |  | Investments
|                          |  |                   |         |            |  |         |       |        |  |             |        |             |  |            
|                          |  | (NOK in millions)
|Telenor Mobil  Norway    |  |                   | 3,611   |            |  |         | 38    |        |  |             | 4,618  |             |  |             | 8,267   |   |  |  | 1,036   |   |  |  | 3,436   |   |  |  | 1,218  |  
|Sonofon  Denmark         |  |                   | 7,688   |            |  |         | 5     |        |  |             | 1,090  |             |  |             | 8,783   |   |  |  | 5,585   |   |  |  | 856     |   |  |  | 1,063  |  
|Kyivstar  Ukraine        |  |                   | 8,459   |            |  |         |      |        |  |             | 2,313  |             |  |             | 10,772  |   |  |  | 3,578   |   |  |  | 1,728   |   |  |  | 3,654  |  
|Pannon GSM  Hungary      |  |                   | 8,672   |            |  |         |      |        |  |             | 2,951  |             |  |             | 11,623  |   |  |  | 164     |   |  |  | 1,184   |   |  |  | 763    |  
|DiGi.Com  Malaysia       |  |                   | 5,758   |            |  |         |      |        |  |             | 2,519  |             |  |             | 8,277   |   |  |  | 1,253   |   |  |  | 2,334   |   |  |  | 1,170  |  
|GrameenPhone  Bangladesh |  |                   | 4,277   |            |  |         |      |        |  |             | 698    |             |  |             | 4,975   |   |  |  | 1,520   |   |  |  | 1,828   |   |  |  | 2,596  |  
|Other mobile operations   |  |                   | 17,821  |            |  |         | 5,250 |        |  |             | 3,361  |             |  |             | 26,432  |   |  |  | 5,341   |   |  |  | 8,885   |   |  |  | 14,334 |  
|Fixed                     |  |                   | 16,961  |            |  |         | 1,374 |        |  |             | 9,100  |             |  |             | 27,435  |   |  |  | 15,770  |   |  |  | 5,777   |   |  |  | 9,525  |  
|Broadcast                 |  |                   | 7,061   |            |  |         | 625   |        |  |             | 5,247  |             |  |             | 12,933  |   |  |  | 8,849   |   |  |  | 2,184   |   |  |  | 453    |  
|Other operations          |  |                   | 40,723  |            |  |         | (1    | )      |  |             | 3,664  |             |  |             | 44,386  |   |  |  | 18,017  |   |  |  | 20,920  |   |  |  | 1,014  |  
|Eliminations              |  |                   | (29,809 | )          |  |         | 133   |        |  |             | (9,812 | )           |  |             | (39,488 | ) |  |  | (27,357 | ) |  |  | (12,026 | ) |  |  | (67    | )
|                          |  |                   |         |            |  |         |       |        |  |             |        |             |  |             |         |   |  |  |         |   |  |  |         |   |  |  |        |  
|Total                     |  |                   | 91,222  |            |  |         | 7,424 |        |  |             | 25,749 |             |  |             | 124,395 |   |  |  | 33,756  |   |  |  | 37,106  |   |  |  | 35,723 |  
|                          |  |                   |         |            |  |         |       |        |  |             |        |             |  |             |         |   |  |  |         |   |  |  |         |   |  |  |        |  

Profit and loss 2004


|                          |  |                   |        |          |  |           |        |                  |  |                  |        |            |  |           |        |               |  |  |        |   |  |  |     |  |  |  |        |   |  |  |        |  
|------------------------- |  | ----------------- | ------ | -------- |  | --------- | ------ | ---------------- |  | ---------------- | ------ | ---------- |  | --------- | ------ | ------------- |  |  | ------ | - |  |  | --- |  |  |  | ------ | - |  |  | ------ | -
|                          |  |                   |        |          |  |           |        |                  |  |                  |        | Associated |  |           |        |              
|                          |  |                   |        |          |  |           |        | Depreciation,    |  |                  |        | companies  |  | Net       |        | Profit (loss)
|                          |  |                   |        | External |  |           |        | amortization and |  | Operating        |        | and joint  |  | financial |        | before       
|                          |  | Revenues          |        | revenues |  | EBITDA(1) |        | write-downs      |  | profit (loss)(2) |        | ventures   |  | items     |        | taxes        
|                          |  |                   |        |          |  |           |        |                  |  |                  |        |            |  |           |        |              
|                          |  | (NOK in millions)
|Telenor Mobil  Norway    |  |                   | 11,730 |          |  |           | 10,504 |                  |  |                  | 4,305  |            |  |           | 1,077  |               |  |  | 3,228  |   |  |  | 10  |  |  |  | 64     |   |  |  | 3,302  |  
|Sonofon  Denmark         |  |                   | 4,404  |          |  |           | 4,351  |                  |  |                  | 681    |            |  |           | 4,480  |               |  |  | (3,799 | ) |  |  |    |  |  |  | (164   | ) |  |  | (3,963 | )
|Kyivstar  Ukraine        |  |                   | 4,219  |          |  |           | 4,217  |                  |  |                  | 2,581  |            |  |           | 555    |               |  |  | 2,026  |   |  |  |    |  |  |  | (159   | ) |  |  | 1,867  |  
|Pannon GSM  Hungary      |  |                   | 5,907  |          |  |           | 5,901  |                  |  |                  | 2,093  |            |  |           | 1,316  |               |  |  | 777    |   |  |  |    |  |  |  | 50     |   |  |  | 827    |  
|DiGi.Com  Malaysia       |  |                   | 3946   |          |  |           | 3,943  |                  |  |                  | 1,732  |            |  |           | 901    |               |  |  | 831    |   |  |  |    |  |  |  | (110   | ) |  |  | 721    |  
|GrameenPhone  Bangladesh |  |                   | 2,186  |          |  |           | 2,186  |                  |  |                  | 1,313  |            |  |           | 218    |               |  |  | 1,095  |   |  |  |    |  |  |  | 1      |   |  |  | 1,096  |  
|Other mobile operations   |  |                   | 423    |          |  |           | 335    |                  |  |                  | (712   | )          |  |           | 191    |               |  |  | (903   | ) |  |  | 789 |  |  |  | (61    | ) |  |  | (175   | )
|Fixed                     |  |                   | 19,256 |          |  |           | 17,433 |                  |  |                  | 6,338  |            |  |           | 3,613  |               |  |  | 2,725  |   |  |  | 69  |  |  |  | (442   | ) |  |  | 2,352  |  
|Broadcast                 |  |                   | 5,346  |          |  |           | 5,211  |                  |  |                  | 1,498  |            |  |           | 748    |               |  |  | 750    |   |  |  | 46  |  |  |  | (475   | ) |  |  | 321    |  
|Other operations          |  |                   | 9,540  |          |  |           | 6,611  |                  |  |                  | 1,114  |            |  |           | 1,018  |               |  |  | 96     |   |  |  | 70  |  |  |  | 4,084  |   |  |  | 4,250  |  
|Eliminations              |  |                   | (6,366 | )        |  |           | (101   | )                |  |                  | 592    |            |  |           | 51     |               |  |  | 541    |   |  |  | 2   |  |  |  | (1,267 | ) |  |  | (724   | )
|                          |  |                   |        |          |  |           |        |                  |  |                  |        |            |  |           |        |               |  |  |        |   |  |  |     |  |  |  |        |   |  |  |        |  
|Total                     |  |                   | 60,591 |          |  |           | 60,591 |                  |  |                  | 21,535 |            |  |           | 14,168 |               |  |  | 7,367  |   |  |  | 986 |  |  |  | 1,521  |   |  |  | 9,874  |  
|                          |  |                   |        |          |  |           |        |                  |  |                  |        |            |  |           |        |               |  |  |        |   |  |  |     |  |  |  |        |   |  |  |        |  






|    |                                                                                    
|--- | -----------------------------------------------------------------------------------
|(1) | See the table on the previous page for definition and
    reconciliation of EBITDA.
|   
|(2) | The segment result is the operating profit (loss).                                 

F-33



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Balance sheet items and investments as of December 31,
2004


|                          |  |                   |         |   |            |  |       |         |  |             |             |   |  |            |         |   |             |  |         |             |  |  |         |   |  |  |        |  
|------------------------- |  | ----------------- | ------- | - | ---------- |  | ----- | ------- |  | ----------- | ----------- | - |  | ---------- | ------- | - | ----------- |  | ------- | ----------- |  |  | ------- | - |  |  | ------ | -
|                          |  |                   |         |   |            |  |       |         |  | Non-current |             |   |  |            |        
|                          |  | Other non-        |         |   |            |  |       |         |  |             | liabilities |   |  |            |         |  
|                          |  | current           |         |   | Associated |  |       | Current |  |             | Total       |   |  | incl.      |         |   | Current     |  |         |            
|                          |  | assets            |         |   | companies  |  |       | assets  |  |             | assets      |   |  | provisions |         |   | liabilities |  |         | Investments | 
|                          |  |                   |         |   |            |  |       |         |  |             |             |   |  |            |         |   |             |  |         |             | 
|                          |  | (NOK in millions) |        
|Telenor Mobil  Norway    |  |                   | 3,748   |   |            |  | 6     |         |  |             | 3,997       |   |  |            | 7,751   |   |             |  | 439     |             |  |  | 6,165   |   |  |  | 1,029  |  
|Sonofon  Denmark         |  |                   | 8,184   |   |            |  | 1     |         |  |             | 1,099       |   |  |            | 9,284   |   |             |  | 4,529   |             |  |  | 783     |   |  |  | 13,237 |  
|Kyivstar  Ukraine        |  |                   | 4,936   |   |            |  |      |         |  |             | 1,109       |   |  |            | 6,045   |   |             |  | 1,636   |             |  |  | 1,465   |   |  |  | 2,612  |  
|Pannon GSM  Hungary      |  |                   | 9,669   |   |            |  |      |         |  |             | 2,041       |   |  |            | 11,710  |   |             |  | 338     |             |  |  | 1,364   |   |  |  | 1,166  |  
|DiGi.Com  Malaysia       |  |                   | 4,998   |   |            |  |      |         |  |             | 1,337       |   |  |            | 6,335   |   |             |  | 1,079   |             |  |  | 1,809   |   |  |  | 920    |  
|GrameenPhone  Bangladesh |  |                   | 2,074   |   |            |  |      |         |  |             | 620         |   |  |            | 2,694   |   |             |  | 511     |             |  |  | 853     |   |  |  | 1,318  |  
|Other mobile operations   |  |                   | 2,546   |   |            |  | 4,469 |         |  |             | 301         |   |  |            | 7,316   |   |             |  | 1,335   |             |  |  | 687     |   |  |  | 2,853  |  
|Fixed                     |  |                   | 12,284  |   |            |  | 1,411 |         |  |             | 9,639       |   |  |            | 23,334  |   |             |  | 10,412  |             |  |  | 8,684   |   |  |  | 1,832  |  
|Broadcast                 |  |                   | 6,289   |   |            |  | 534   |         |  |             | 4,386       |   |  |            | 11,209  |   |             |  | 8,428   |             |  |  | 2,895   |   |  |  | 862    |  
|Other operations          |  |                   | 33,441  |   |            |  | 70    |         |  |             | 9,967       |   |  |            | 43,478  |   |             |  | 17,974  |             |  |  | 13,676  |   |  |  | 1,829  |  
|Eliminations              |  |                   | (21,590 | ) |            |  | 111   |         |  |             | (16,281     | ) |  |            | (37,760 | ) |             |  | (20,026 | )           |  |  | (17,708 | ) |  |  | (168   | )
|                          |  |                   |         |   |            |  |       |         |  |             |             |   |  |            |         |   |             |  |         |             | 
|Total                     |  |                   | 66,579  |   |            |  | 6,602 |         |  |             | 18,215      |   |  |            | 91,396  |   |             |  | 26,655  |             |  |  | 20,673  |   |  |  | 27,490 |  
|                          |  |                   |         |   |            |  |       |         |  |             |             |   |  |            |         |   |             |  |         |             | 

Geographic distribution of revenues based on customer
location


|                     |  |                   |        |  |      |  |        | 
|-------------------- |  | ----------------- | ------ |  | ---- |  | ------ | 
|                     |  | 2004              |        |  | 2005 | 
|                     |  |                   |        |  |      | 
|                     |  | (NOK in millions) |       
|Norway               |  |                   | 31,157 |  |      |  | 31,574 | 
|Other Nordic         |  |                   | 9,469  |  |      |  | 10,906 | 
|Western Europe       |  |                   | 1,194  |  |      |  | 1,268  | 
|Central Europe       |  |                   | 6,714  |  |      |  | 7,170  | 
|The Ukraine          |  |                   | 4,236  |  |      |  | 6,975  | 
|Other Eastern Europe |  |                   | 189    |  |      |  | 307    | 
|Asia                 |  |                   | 6,343  |  |      |  | 9,531  | 
|Other countries      |  |                   | 1,289  |  |      |  | 1,196  | 
|                     |  |                   |        |  |      | 
|Total revenues       |  |                   | 60,591 |  |      |  | 68,927 | 
|                     |  |                   |        |  |      | 

Geographic distribution of revenues based on company
location


|                |  |                   |        |  |      |  |        | 
|--------------- |  | ----------------- | ------ |  | ---- |  | ------ | 
|                |  | 2004              |        |  | 2005 | 
|                |  |                   |        |  |      | 
|                |  | (NOK in millions) |       
|Norway          |  |                   | 33,397 |  |      |  | 33,556 | 
|Other Nordic    |  |                   | 8,954  |  |      |  | 10,482 | 
|Western Europe  |  |                   | 638    |  |      |  | 640    | 
|Central Europe  |  |                   | 6,397  |  |      |  | 6,823  | 
|The Ukraine     |  |                   | 4,217  |  |      |  | 7,266  | 
|Asia            |  |                   | 6,131  |  |      |  | 9,339  | 
|Other countries |  |                   | 857    |  |      |  | 821    | 
|                |  |                   |        |  |      | 
|Total revenues  |  |                   | 60,591 |  |      |  | 68,927 | 
|                |  |                   |        |  |      | 

F-34



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


|                     |  |                     |        |  |              |  |        |             |  |  |        |  |  |      |          |  |      |  |        |  |  |  |        | 
|-------------------- |  | ------------------- | ------ |  | ------------ |  | ------ | ----------- |  |  | ------ |  |  | ---- | -------- |  | ---- |  | ------ |  |  |  | ------ | 
|                     |  | Property, plant and |        |  |              |  |       
|                     |  | equipment           |        |  | Total assets |  |        | Investments | 
|                     |  |                     |        |  |              |  |        |             | 
|                     |  | 2004                |        |  | 2005         |  |        | 2004        |  |  | 2005   |  |  | 2004 |          |  | 2005 | 
|                     |  |                     |        |  |              |  |        |             |  |  |        |  |  |      |          |  |      | 
|                     |  | (NOK in millions)   |       
|Norway               |  |                     | 21,178 |  |              |  | 19,171 |             |  |  | 22,965 |  |  |      | 14,263   |  |      |  | 4,949  |  |  |  | 4,241  | 
|Other Nordic         |  |                     | 3,303  |  |              |  | 3,612  |             |  |  | 13,780 |  |  |      | 20,809   |  |      |  | 13,480 |  |  |  | 8,827  | 
|Western Europe       |  |                     | 45     |  |              |  | 56     |             |  |  | 13,957 |  |  |      | 13,938   |  |      |  | 17     |  |  |  | 52     | 
|Central Europe       |  |                     | 2,911  |  |              |  | 2,604  |             |  |  | 13,733 |  |  |      | 13,469   |  |      |  | 2,174  |  |  |  | 837    | 
|The Ukraine          |  |                     | 3,597  |  |              |  | 6,580  |             |  |  | 6,045  |  |  |      | 10,772   |  |      |  | 2,612  |  |  |  | 3,654  | 
|Other Eastern Europe |  |                     |       |  |              |  |       |             |  |  | 4,312  |  |  |      | 4,214    |  |      |  |       |  |  |  |       | 
|Asia                 |  |                     | 6,238  |  |              |  | 11,662 |             |  |  | 15,735 |  |  |      | 46,135   |  |      |  | 4,136  |  |  |  | 18,058 | 
|Other countries      |  |                     | 271    |  |              |  | 273    |             |  |  | 869    |  |  |      | 795      |  |      |  | 122    |  |  |  | 54     | 
|                     |  |                     |        |  |              |  |        |             |  |  |        |  |  |      |          |  |      | 
|Total assets         |  |                     | 37,543 |  |              |  | 43,958 |             |  |  | 91,396 |  |  |      | 1,24,395 |  |      |  | 27,490 |  |  |  | 35,723 | 
|                     |  |                     |        |  |              |  |        |             |  |  |        |  |  |      |          |  |      | 

4.                COSTS
OF MATERIALS AND TRAFFIC CHARGES


|                                             |  |                   |        |  |      |  |        | 
|-------------------------------------------- |  | ----------------- | ------ |  | ---- |  | ------ | 
|                                             |  | 2004              |        |  | 2005 | 
|                                             |  |                   |        |  |      | 
|                                             |  | (NOK in millions) |       
|Traffic charges  network capacity           |  |                   | 8,875  |  |      |  | 10,634 | 
|Traffic charges  satellite capacity         |  |                   | 1,191  |  |      |  | 1,066  | 
|Costs of materials etc.                      |  |                   | 5,858  |  |      |  | 6,011  | 
|                                             |  |                   |        |  |      | 
|Total costs of materials and traffic charges |  |                   | 15,924 |  |      |  | 17,711 | 
|                                             |  |                   |        |  |      | 



5.                OWN
WORK CAPITALIZED


|                             |  |                   |     |  |      |  |     | 
|---------------------------- |  | ----------------- | --- |  | ---- |  | --- | 
|                             |  | 2004              |     |  | 2005 | 
|                             |  |                   |     |  |      | 
|                             |  | (NOK in millions) |    
|Costs of materials etc.      |  |                   | 161 |  |      |  | 216 | 
|Salaries and personnel costs |  |                   | 311 |  |      |  | 349 | 
|Other operating expenses     |  |                   | 85  |  |      |  | 139 | 
|                             |  |                   |     |  |      | 
|Total own work capitalized   |  |                   | 557 |  |      |  | 704 | 
|                             |  |                   |     |  |      | 

6.                SALARIES
AND PERSONNEL COSTS


|                                                       |  |                   |       |  |      |  |        | 
|------------------------------------------------------ |  | ----------------- | ----- |  | ---- |  | ------ | 
|                                                       |  | 2004              |       |  | 2005 | 
|                                                       |  |                   |       |  |      | 
|                                                       |  | (NOK in millions) |      
|Salaries and holiday pay                               |  |                   | 7,554 |  |      |  | 7,794  | 
|Social security tax                                    |  |                   | 1,142 |  |      |  | 1,138  | 
|Pension costs including social security tax            |  |                   | 837   |  |      |  | 771    | 
|Share-based payments, excluding social security tax(1) |  |                   | 28    |  |      |  | 20     | 
|                                                       |  |                   |       |  |      | 
|Other personnel costs                                  |  |                   | 409   |  |      |  | 513    | 
|                                                       |  |                   |       |  |      | 
|Total salaries and personnel costs                     |  |                   | 9,970 |  |      |  | 10,236 | 
|                                                       |  |                   |       |  |      | 

F-35



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group







|    |                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------
|(1) | Include share options and employee share ownership program,
    excluding social security tax on these.



7.                PENSION
OBLIGATIONS


(G-regulation).












F-36



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |  |             |      |  |        |  |      |                   |  |  |       |  |  |     |      |  |       |  |       |  |  |  |       | 
|--- |  | ----------- | ---- |  | ------ |  | ---- | ----------------- |  |  | ----- |  |  | --- | ---- |  | ----- |  | ----- |  |  |  | ----- | 
|    |  | Disability% |      |  | Death% |  |      | Expected lifetime | 
|    |  |             |      |  |        |  |      |                   | 
|Age |  | Men         |      |  | Women  |  |      | Men               |  |  | Women |  |  | Men |      |  | Women | 
|    |  |             |      |  |        |  |      |                   |  |  |       |  |  |     |      |  |       | 
|20  |  |             | 0.13 |  |        |  | 0.16 |                   |  |  |      |  |  |     |     |  |       |  | 79.69 |  |  |  | 83.81 | 
|40  |  |             | 0.21 |  |        |  | 0.35 |                   |  |  | 0.09  |  |  |     | 0.11 |  |       |  | 80.18 |  |  |  | 84.05 | 
|60  |  |             | 1.48 |  |        |  | 1.94 |                   |  |  | 0.57  |  |  |     | 0.47 |  |       |  | 81.57 |  |  |  | 85.18 | 
|80  |  |             | N/A  |  |        |  | N/A  |                   |  |  | 6.20  |  |  |     | 4.54 |  |       |  | 87.33 |  |  |  | 88.85 | 

28-year


paid-up paid-up paid-up


paid-up paid-up


F-37



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                                                      |  |                   |       |   |      |  |       |  
|------------------------------------------------------------------------------------- |  | ----------------- | ----- | - | ---- |  | ----- | -
|                                                                                      |  | 2004              |       |   | 2005 | 
|                                                                                      |  |                   |       |   |      | 
|                                                                                      |  | (NOK in millions) |      
|Change in projected benefit obligation                                                |  |                   |       |   |      |  |       |  
|Projected benefit obligation at the beginning of the year                             |  |                   | 5,323 |   |      |  | 5,835 |  
|Service cost                                                                          |  |                   | 538   |   |      |  | 581   |  
|Interest cost                                                                         |  |                   | 263   |   |      |  | 257   |  
|Actuarial (gains) and losses                                                          |  |                   | (80   | ) |      |  | (218  | )
|Curtailments and settlements                                                          |  |                   |      |   |      |  | (438  | )
|Acquisitions and sale                                                                 |  |                   | (43   | ) |      |  | (78   | )
|Benefits paid/paid-up policies                                                        |  |                   | (166  | ) |      |  | (150  | )
|                                                                                      |  |                   |       |   |      | 
|Benefit obligations at the end of the year                                            |  |                   | 5,835 |   |      |  | 5,789 |  
|                                                                                      |  |                   |       |   |      | 
|Change in plan assets                                                                 |  |                   |       |   |      |  |       |  
|Fair value of plan assets at the beginning of the year                                |  |                   | 3,288 |   |      |  | 3,811 |  
|Actual return on plan assets                                                          |  |                   | 239   |   |      |  | 312   |  
|Curtailments and settlements                                                          |  |                   |      |   |      |  | (375  | )
|Acquisitions and sale                                                                 |  |                   | 20    |   |      |  | (56   | )
|Pension contribution                                                                  |  |                   | 426   |   |      |  | 350   |  
|Benefits paid/paid-up policies                                                        |  |                   | (162  | ) |      |  | (146  | )
|                                                                                      |  |                   |       |   |      | 
|Fair value of plan assets at the end of the year                                      |  |                   | 3,811 |   |      |  | 3,896 |  
|                                                                                      |  |                   |       |   |      | 
|Funded status                                                                         |  |                   | 2,024 |   |      |  | 1,893 |  
|Unrecognized net actuarial gains (losses)(1)                                          |  |                   | (6    | ) |      |  | 285   |  
|Accrued social security tax(1)                                                        |  |                   | 278   |   |      |  | 263   |  
|                                                                                      |  |                   |       |   |      | 
|Total provision for pensions including social security tax                            |  |                   | 2,296 |   |      |  | 2,441 |  
|                                                                                      |  |                   |       |   |      | 
|Total provision for pensions as of 01.01                                              |  |                   | 2,147 |   |      |  | 2,296 |  
|Acquisitions and sale                                                                 |  |                   | (59   | ) |      |  | (43   | )
|Net periodic benefit costs                                                            |  |                   | 696   |   |      |  | 591   |  
|Pension contribution                                                                  |  |                   | (426  | ) |      |  | (350  | )
|Benefits paid paid-up policies                                                        |  |                   | (4    | ) |      |  | (4    | )
|Social security tax on pension contribution                                           |  |                   | (58   | ) |      |  | (49   | )
|                                                                                      |  |                   |       |   |      | 
|Total provision for pensions as of 12.31. including social
    security tax (Note 21) |  |                   | 2,296 |   |      |  | 2,441 |  
|                                                                                      |  |                   |       |   |      | 






|    |                                                                                                                                                                              
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Social security tax is the funded status multiplied with the
    average social security tax rate. Unrecognized net actuarial
    gains (losses) include social security tax.

F-38



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                                                                  |  |                   |       |  |      |  |       | 
|------------------------------------------------------------------------------------------------- |  | ----------------- | ----- |  | ---- |  | ----- | 
|                                                                                                  |  | 2004              |       |  | 2005 | 
|                                                                                                  |  |                   |       |  |      | 
|                                                                                                  |  | (NOK in millions) |      
|Information for pension plans with an accumulated benefit
    obligation in excess of plan assets |  |                   |       |  |      |  |       | 
|Projected benefit obligation                                                                      |  |                   | 5,706 |  |      |  | 5,722 | 
|Accumulated benefit obligation                                                                    |  |                   | 4,546 |  |      |  | 4,839 | 
|Fair value of plan assets                                                                         |  |                   | 3,714 |  |      |  | 3,879 | 

|                                                                        |  |      |      |  |      |  |      | 
|----------------------------------------------------------------------- |  | ---- | ---- |  | ---- |  | ---- | 
|                                                                        |  | 2004 |      |  | 2005 | 
|                                                                        |  |      |      |  |      | 
|Assumptions used to determine benefit obligations as of
    December 31 |  |      |      |  |      |  |      | 
|Discount rate in %                                                      |  |      | 4.5  |  |      |  | 3.9  | 
|Future salary increase in %                                             |  |      | 3.0  |  |      |  | 3.0  | 
|Future increase in the social security base amount in %                 |  |      | 3.0  |  |      |  | 3.0  | 
|Future turnover in %                                                    |  |      | 6.0  |  |      |  | 10.0 | 
|Expected average remaining service period in years                      |  |      | 12.0 |  |      |  | 9.0  | 
|Future pension increases in %                                           |  |      | 3.0  |  |      |  | 2.5  | 

|                                                                                         |  |      |      |  |      |  |      | 
|---------------------------------------------------------------------------------------- |  | ---- | ---- |  | ---- |  | ---- | 
|                                                                                         |  | 2004 |      |  | 2005 | 
|                                                                                         |  |      |      |  |      | 
|Assumptions used to determine net periodic benefit costs for
    years ended December 31 |  |      |      |  |      |  |      | 
|Discount rate in %                                                                       |  |      | 5.1  |  |      |  | 4.5  | 
|Expected return on plan assets in %                                                      |  |      | 6.1  |  |      |  | 5.4  | 
|Future salary increase in %                                                              |  |      | 3.4  |  |      |  | 3.0  | 
|Future increase in the social security base amount in %                                  |  |      | 3.4  |  |      |  | 3.0  | 
|Future turnover in %                                                                     |  |      | 6.0  |  |      |  | 6.0  | 
|Expected average remaining service period in years                                       |  |      | 12.0 |  |      |  | 12.0 | 
|Future pension increases in %                                                            |  |      | 3.4  |  |      |  | 3.0  | 

F-39



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                          |  |           |      |   |      |  |      |  
|--------------------------------------------------------- |  | --------- | ---- | - | ---- |  | ---- | -
|                                                          |  | 2004      |      |   | 2005 | 
|                                                          |  |           |      |   |      | 
|                                                          |  | (NOK in   |     
|                                                          |  | millions) |     
|Components of net periodic benefit cost                   |  |           |      |   |      |  |      |  
|Service cost                                              |  |           | 538  |   |      |  | 581  |  
|Interest cost                                             |  |           | 263  |   |      |  | 257  |  
|Expected return on plan assets                            |  |           | (189 | ) |      |  | (197 | )
|Losses/gains on curtailments and settlements              |  |           | (4   | ) |      |  | (63  | )
|Amortization of actuarial gains and losses                |  |           | (10  | ) |      |  | (73  | )
|Social security tax                                       |  |           | 98   |   |      |  | 86   |  
|                                                          |  |           |      |   |      | 
|Net periodic benefit costs                                |  |           | 696  |   |      |  | 591  |  
|                                                          |  |           |      |   |      | 
|Contribution plan costs                                   |  |           | 141  |   |      |  | 180  |  
|                                                          |  |           |      |   |      | 
|Total pension costs charged to profit (loss) for the year |  |           | 837  |   |      |  | 771  |  
|                                                          |  |           |      |   |      | 



|                    |  |      |     |  |      |  |     | 
|------------------- |  | ---- | --- |  | ---- |  | --- | 
|                    |  | 2004 |     |  | 2005 | 
|                    |  |      |     |  |      | 
|Asset category      |  |      |     |  |      |  |     | 
|Bonds %             |  |      | 70  |  |      |  | 53  | 
|Equity securities % |  |      | 26  |  |      |  | 32  | 
|Properties %        |  |      |    |  |      |  | 12  | 
|Other %             |  |      | 4   |  |      |  | 3   | 
|                    |  |      |     |  |      | 
|Total               |  |      | 100 |  |      |  | 100 | 
|                    |  |      |     |  |      | 







F-40



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                                |  |                   |    |  |      |  |     |      |  |  |      |         |  |      |     |  |      |  |     |  |  |  |       | 
|--------------------------------------------------------------- |  | ----------------- | -- |  | ---- |  | --- | ---- |  |  | ---- | ------- |  | ---- | --- |  | ---- |  | --- |  |  |  | ----- | 
|                                                                |  |                   |    |  |      |  |     |      |  |  |      | 2011 to | 
|                                                                |  | 2006              |    |  | 2007 |  |     | 2008 |  |  | 2009 |         |  | 2010 |     |  | 2015 | 
|                                                                |  |                   |    |  |      |  |     |      |  |  |      |         |  |      |     |  |      | 
|                                                                |  | (NOK in millions) |   
|Expected pension benefit payments from the Telenor Pension Fund |  |                   | 88 |  |      |  | 102 |      |  |  | 119  |         |  |      | 138 |  |      |  | 153 |  |  |  | 1,176 | 









|                    |                                                                                                         |                   |  |               |          |  |               |        |  |             |             |     |  |          |  |      |     |  |  |      |   |  |     |     |  |     |  |     |     |  |  |      |   |  |  |      |   |  |  |     | 
|------------------- | ------------------------------------------------------------------------------------------------------- | ----------------- |  | ------------- | -------- |  | ------------- | ------ |  | ----------- | ----------- | --- |  | -------- |  | ---- | --- |  |  | ---- | - |  | --- | --- |  | --- |  | --- | --- |  |  | ---- | - |  |  | ---- | - |  |  | --- | 
|                    |                                                                                                         |                   |  |               |          |  |               | Social |  |             | Annual      |     |  |          |  |     
|                    |                                                                                                         |                   |  | Future salary |          |  | Security base |        |  | adjustments |             |     | 
|                    |                                                                                                         | Discount rate     |  |               | increase |  |               | amount |  |             | to pensions |     |  | Turnover | 
|                    |                                                                                                         |                   |  |               |          |  |               |        |  |             |             |     |  |          | 
|                    |                                                                                                         | +1%               |  |               | -1%      |  |               | +1%    |  |             | -1%         |     |  | +1%      |  |      | -1% |  |  | +1%  |   |  | -1% |     |  | +4% |  |     | -4% | 
|                    |                                                                                                         |                   |  |               |          |  |               |        |  |             |             |     |  |          |  |      |     |  |  |      |   |  |     |     |  |     |  |     |     | 
|                    |                                                                                                         | (NOK in millions) | 
|Changes in pension: |                                                                                                         |                   |  |               |          |  |               |        |  |             |             |     |  |          |  |      |     |  |  |      |   |  |     |     |  |     |  |     |     |  |  |      |   |  |  |      |   |  |  |    
|                    | Obligations                                                                                             |                   |  | (751          | )        |  |               | 1,094  |  |             |             | 758 |  |          |  | (639 | )   |  |  | (275 | ) |  |     | 261 |  |     |  | 635 |     |  |  | (521 | ) |  |  | (234 | ) |  |  | 307 | 
|                    | Unrecognized actuarial losses                                                                           |                   |  | (856          | )        |  |               | 1,249  |  |             |             | 865 |  |          |  | (729 | )   |  |  | (314 | ) |  |     | 297 |  |     |  | 724 |     |  |  | (594 | ) |  |  | (267 | ) |  |  | 350 | 
|                    | Expenses due to amortization of actuarial losses                                                        |                   |  | (91           | )        |  |               | 15     |  |             |             |    |  |          |  | (76  | )   |  |  | (25  | ) |  |     |    |  |     |  |    |     |  |  | (59  | ) |  |  | (20  | ) |  |  |    | 
|                    | Net periodic benefit cost including effect due to amortization
    of actuarial losses (as shown above) |                   |  | (193          | )        |  |               | 163    |  |             |             | 103 |  |          |  | (162 | )   |  |  | (63  | ) |  |     | 35  |  |     |  | 86  |     |  |  | (130 | ) |  |  | (52  | ) |  |  | 42  | 



F-41



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


8.                OTHER
OPERATING EXPENSES


|                                                       |  |                   |        |      |  |  |        | 
|------------------------------------------------------ |  | ----------------- | ------ | ---- |  |  | ------ | 
|                                                       |  | 2004              |        | 2005
|                                                       |  |                   |        |     
|                                                       |  | (NOK in millions)
|Operating leases of building, land and equipment       |  |                   | 1,070  |      |  |  | 1,248  | 
|Other cost of premises, vehicles, office equipment etc |  |                   | 793    |      |  |  | 860    | 
|Operation and maintenance                              |  |                   | 3,628  |      |  |  | 4,315  | 
|Travel and travel allowances                           |  |                   | 482    |      |  |  | 489    | 
|Postage freight, distribution and telecommunication    |  |                   | 296    |      |  |  | 389    | 
|Concession fees                                        |  |                   | 582    |      |  |  | 862    | 
|Marketing and sales commission                         |  |                   | 3,735  |      |  |  | 4,873  | 
|Advertising                                            |  |                   | 1,416  |      |  |  | 2,019  | 
|Bad debts(1)                                           |  |                   | 248    |      |  |  | 311    | 
|Consultancy fees and external personnel                |  |                   | 1,350  |      |  |  | 1,757  | 
|Other                                                  |  |                   | 271    |      |  |  | 483    | 
|                                                       |  |                   |        |      |  |  |        | 
|Total other operating expenses                         |  |                   | 13,871 |      |  |  | 17,606 | 
|                                                       |  |                   |        |      |  |  |        | 






|    |                                  
|--- | ---------------------------------
|(1) | See note 10 for more information.

9.                OTHER
INCOME AND EXPENSES


|                                                                 |  |           |      |      |  |  |     | 
|---------------------------------------------------------------- |  | --------- | ---- | ---- |  |  | --- | 
|                                                                 |  | 2004      |      | 2005
|                                                                 |  |           |      |     
|                                                                 |  | (NOK in  
|                                                                 |  | millions)
|Gains on disposals of fixed assets and operations                |  |           | 562  |      |  |  | 320 | 
|Losses on disposals of fixed assets and operations               |  |           | 74   |      |  |  | 152 | 
|Expenses for workforce reduction and onerous (loss) contracts(1) |  |           | 336  |      |  |  | 410 | 
|                                                                 |  |           |      |      |  |  |     | 
|Total other (income) and expenses                                |  |           | (152 | )    |  |  | 242 | 
|                                                                 |  |           |      |      |  |  |     | 






|    |                                  
|--- | ---------------------------------
|(1) | See note 12 for more information.









F-42



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


10.                 BAD
DEBTS


|                                             |  |           |      |   |      |  |      |  
|-------------------------------------------- |  | --------- | ---- | - | ---- |  | ---- | -
|                                             |  | 2004      |      |   | 2005 | 
|                                             |  |           |      |   |      | 
|                                             |  | (NOK in   |     
|                                             |  | millions) |     
|Provisions as of January 1                   |  |           | 592  |   |      |  | 720  |  
|Provisions as of December 31                 |  |           | 720  |   |      |  | 950  |  
|                                             |  |           |      |   |      | 
|Change in provisions for bad debts           |  |           | 128  |   |      |  | 230  |  
|                                             |  |           |      |   |      | 
|Other changes in provisions for bad debts(1) |  |           | (110 | ) |      |  | (143 | )
|Realized losses for the year                 |  |           | 297  |   |      |  | 308  |  
|Recovered amounts previously written off     |  |           | (67  | ) |      |  | (84  | )
|                                             |  |           |      |   |      | 
|Total bad debt                               |  |           | 248  |   |      |  | 311  |  
|                                             |  |           |      |   |      | 






|    |                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes effects of disposal and acquisition of businesses and
    translation adjustments. The increase in 2005 was primarily
    related to the consolidation of DTAC.



|    |                               
|--- | ------------------------------
|11. | RESEARCH AND DEVELOPMENT COSTS





|    |                                                           
|--- | ----------------------------------------------------------
|12. | WORKFORCE REDUCTIONS, ONEROUS CONTRACTS AND LEGAL DISPUTES



|                                                        |  |                   |     |  |              |      |           |              |  |  |          |            |          |           |               |             |              |  |     |   |  |  |     |  
|------------------------------------------------------- |  | ----------------- | --- |  | ------------ | ---- | --------- | ------------ |  |  | -------- | ---------- | -------- | --------- | ------------- | ----------- | ------------ |  | --- | - |  |  | --- | -
|                                                        |  |                   |     |  |              | 2004 |           |              |  |  |          |            |         
|                                                        |  | Provisions in     |     |  |              |      | additions |              |  |  |          | Provisions |          |           | Provisions in |            
|                                                        |  | the balance       |     |  | 2004         |      |           | recorded     |  |  |          |            | reversed |           |               | the balance |             
|                                                        |  | sheet at          |     |  | additions in |      |           | directly in  |  |  | 2004     |            |          | in 2004   |               |             | sheet at     | 
|                                                        |  | January 1,        |     |  | income       |      |           | balance(2) & |  |  | amounts  |            |          | income    |               |             | December 31, | 
|                                                        |  | 2004              |     |  | statement    |      |           | Interest     |  |  | utilized |            |          | statement |               |             | 2004         | 
|                                                        |  |                   |     |  |              |      |           |              |  |  |          |            |          |           |               |             |              | 
|                                                        |  | (NOK in millions) |    
|Workforce reductions                                    |  |                   |     |  |              |      |           |              |  |  |          |            |          |           |               |             |              |  |     |   |  |  |     |  
|Mobile operations(3)                                    |  |                   | 10  |  |              |      | 66        |              |  |  |         |            |          |           | (35           | )           |              |  | (5  | ) |  |  | 36  |  
|Fixed                                                   |  |                   | 110 |  |              |      | 61        |              |  |  |         |            |          |           | (76           | )           |              |  |    |   |  |  | 95  |  
|Broadcast                                               |  |                   | 19  |  |              |      | 5         |              |  |  |         |            |          |           | (20           | )           |              |  |    |   |  |  | 4   |  
|Other operations and eliminations                       |  |                   | 145 |  |              |      | 176       |              |  |  | 12       |            |          |           | (162          | )           |              |  | (6  | ) |  |  | 165 |  
|                                                        |  |                   |     |  |              |      |           |              |  |  |          |            |          |           |               |             |              | 
|Total workforce reductions                              |  |                   | 284 |  |              |      | 308       |              |  |  | 12       |            |          |           | (293          | )           |              |  | (11 | ) |  |  | 300 |  
|                                                        |  |                   |     |  |              |      |           |              |  |  |          |            |          |           |               |             |              | 
|Onerous (loss) contracts                                |  |                   |     |  |              |      |           |              |  |  |          |            |          |           |               |             |              |  |     |   |  |  |     |  
|Mobile operations(3)                                    |  |                   |    |  |              |      | 569       |              |  |  | (3       | )          |          |           | (275          | )           |              |  |    |   |  |  | 291 |  
|Fixed                                                   |  |                   | 19  |  |              |      | 25        |              |  |  | (10      | )          |          |           | (21           | )           |              |  |    |   |  |  | 13  |  
|Broadcast                                               |  |                   | 13  |  |              |      |          |              |  |  |         |            |          |           | (4            | )           |              |  |    |   |  |  | 9   |  
|Other operations and eliminations                       |  |                   | 322 |  |              |      | (540      | )            |  |  | 25       |            |          |           | 153           |             |              |  | (15 | ) |  |  | (55 | )
|                                                        |  |                   |     |  |              |      |           |              |  |  |          |            |          |           |               |             |              | 
|Total onerous (loss) contracts                          |  |                   | 354 |  |              |      | 54        |              |  |  | 12       |            |          |           | (147          | )           |              |  | (15 | ) |  |  | 258 |  
|                                                        |  |                   |     |  |              |      |           |              |  |  |          |            |          |           |               |             |              | 
|Total workforce reductions and onerous (loss) contracts |  |                   | 638 |  |              |      | 362       |              |  |  | 24       |            |          |           | (440          | )           |              |  | (26 | ) |  |  | 558 |  
|                                                        |  |                   |     |  |              |      |           |              |  |  |          |            |          |           |               |             |              | 
|Legal disputes(1)                                       |  |                   | 30  |  |              |      | 126       |              |  |  |         |            |          |           | (6            | )           |              |  | (2  | ) |  |  | 148 |  

F-43



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


|                                                        |  |                   |     |              |  |              |      |          |  |            |     |               |  |  |      |   |  |  |     |   |  |  |     | 
|------------------------------------------------------- |  | ----------------- | --- | ------------ |  | ------------ | ---- | -------- |  | ---------- | --- | ------------- |  |  | ---- | - |  |  | --- | - |  |  | --- | 
|                                                        |  |                   |     |              |  | 2005         |      |          |  |            |     |              
|                                                        |  |                   |     |              |  | additions    |      |          |  | Provisions |     |              
|                                                        |  | Provisions in     |     | 2005         |  | recorded     |      |          |  | reversed   |     | Provisions in
|                                                        |  | the balance       |     | additions in |  | directly in  |      | 2005     |  | in 2005    |     | the balance  
|                                                        |  | sheet 12.31.      |     | income       |  | balance(2) & |      | amounts  |  | income     |     | sheet 12.31  
|                                                        |  | 2004              |     | statement    |  | interest     |      | utilized |  | statement  |     | 2005         
|                                                        |  |                   |     |              |  |              |      |          |  |            |     |              
|                                                        |  | (NOK in millions)
|Workforce reductions:                                   |  |                   |     |              |  |              |      |          |  |            |     |               |  |  |      |   |  |  |     |   |  |  |     | 
|Mobile operations(3)                                    |  |                   | 36  |              |  |              | 20   |          |  |            | (1  | )             |  |  | (36  | ) |  |  | (3  | ) |  |  | 16  | 
|Fixed                                                   |  |                   | 95  |              |  |              | 151  |          |  |            | 1   |               |  |  | (73  | ) |  |  |    |   |  |  | 174 | 
|Broadcast                                               |  |                   | 4   |              |  |              |     |          |  |            |    |               |  |  | (2   | ) |  |  |    |   |  |  | 2   | 
|Other operations and eliminations                       |  |                   | 165 |              |  |              | 48   |          |  |            | (1  | )             |  |  | (121 | ) |  |  |    |   |  |  | 91  | 
|                                                        |  |                   |     |              |  |              |      |          |  |            |     |               |  |  |      |   |  |  |     |   |  |  |     | 
|Total workforce reductions                              |  |                   | 300 |              |  |              | 219  |          |  |            | (1  | )             |  |  | (232 | ) |  |  | (3  | ) |  |  | 283 | 
|                                                        |  |                   |     |              |  |              |      |          |  |            |     |               |  |  |      |   |  |  |     |   |  |  |     | 
|Onerous (loss) contracts:                               |  |                   |     |              |  |              |      |          |  |            |     |               |  |  |      |   |  |  |     |   |  |  |     | 
|Mobile operations(3)                                    |  |                   | 291 |              |  |              | 417  |          |  |            | (24 | )             |  |  | (509 | ) |  |  |    |   |  |  | 175 | 
|Fixed                                                   |  |                   | 13  |              |  |              | 8    |          |  |            |    |               |  |  | (3   | ) |  |  |    |   |  |  | 18  | 
|Broadcast                                               |  |                   | 9   |              |  |              |     |          |  |            |    |               |  |  | (3   | ) |  |  |    |   |  |  | 6   | 
|Other operations and eliminations                       |  |                   | (55 | )            |  |              | (208 | )        |  |            | 1   |               |  |  | 442  |   |  |  | (23 | ) |  |  | 157 | 
|                                                        |  |                   |     |              |  |              |      |          |  |            |     |               |  |  |      |   |  |  |     |   |  |  |     | 
|Total onerous (loss) contracts                          |  |                   | 258 |              |  |              | 217  |          |  |            | (23 | )             |  |  | (73  | ) |  |  | (23 | ) |  |  | 356 | 
|                                                        |  |                   |     |              |  |              |      |          |  |            |     |               |  |  |      |   |  |  |     |   |  |  |     | 
|Total workforce reductions and onerous (loss) contracts |  |                   | 558 |              |  |              | 436  |          |  |            | (24 | )             |  |  | (305 | ) |  |  | (26 | ) |  |  | 639 | 
|                                                        |  |                   |     |              |  |              |      |          |  |            |     |               |  |  |      |   |  |  |     |   |  |  |     | 
|Legal disputes(1)                                       |  |                   | 148 |              |  |              | 23   |          |  |            | 11  |               |  |  | (21  | ) |  |  | (34 | ) |  |  | 127 | 






|    |                                                                                                                                  
|--- | ---------------------------------------------------------------------------------------------------------------------------------
|(1) | Does not include disputes relating to tax issues. See
    note 14.                                                               
|   
|(2) | Additions recorded directly to the balance principally relate to
    acquisitions and currency translation effects.              
|   
|(3) | Mobile operations consist of Telenor Mobil, Sonofon Kyivstar,
    Pannon GSM, DiGi.Com, GrameenPhone and other mobile operations.

Provisions as of December 31:


|                                  |  |                   |     |      |  |  |     | 
|--------------------------------- |  | ----------------- | --- | ---- |  |  | --- | 
|                                  |  | 2004              |     | 2005
|                                  |  |                   |     |     
|                                  |  | (NOK in millions)
|Expected to be paid within 1 year |  |                   |     |      |  |  |     | 
|Workforce reductions              |  |                   | 219 |      |  |  | 268 | 
|Onerous contracts                 |  |                   | 111 |      |  |  | 222 | 
|Legal disputes                    |  |                   | 146 |      |  |  | 127 | 
|                                  |  |                   |     |      |  |  |     | 
|Total short term (note 21)        |  |                   | 476 |      |  |  | 617 | 
|                                  |  |                   |     |      |  |  |     | 
|Expected to be paid after 1 year  |  |                   |     |      |  |  |     | 
|Workforce reductions              |  |                   | 81  |      |  |  | 15  | 
|Onerous contracts                 |  |                   | 147 |      |  |  | 134 | 
|Legal disputes                    |  |                   | 2   |      |  |  |    | 
|                                  |  |                   |     |      |  |  |     | 
|Total long term (note 21)         |  |                   | 230 |      |  |  | 149 | 
|                                  |  |                   |     |      |  |  |     | 
|Total                             |  |                   | 706 |      |  |  | 766 | 
|                                  |  |                   |     |      |  |  |     | 

F-44



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group














|    |                              
|--- | -----------------------------
|13. | FINANCIAL INCOME AND EXPENSES

|                                                               |  |                   |        |   |      |  |        |  
|-------------------------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                                                               |  | 2004              |        |   | 2005 | 
|                                                               |  |                   |        |   |      | 
|                                                               |  | (NOK in millions) |       
|Interest income on liquid assets                               |  |                   | 383    |   |      |  | 287    |  
|Other financial income                                         |  |                   | 113    |   |      |  | 160    |  
|                                                               |  |                   |        |   |      | 
|Total financial income                                         |  |                   | 496    |   |      |  | 447    |  
|                                                               |  |                   |        |   |      | 
|Interest expenses on interest-bearing liabilities              |  |                   | (1,582 | ) |      |  | (1,665 | )
|Other financial expenses                                       |  |                   | (96    | ) |      |  | (120   | )
|Capitalized interest                                           |  |                   | 117    |   |      |  | 146    |  
|                                                               |  |                   |        |   |      | 
|Total financial expenses                                       |  |                   | (1,561 | ) |      |  | (1,639 | )
|                                                               |  |                   |        |   |      | 
|Net foreign currency (loss)                                    |  |                   | (87    | ) |      |  | 84     |  
|Total change in fair value of financial instruments            |  |                   |       |   |      |  | 243    |  
|Gains on disposal of financial assets                          |  |                   | 2,652  |   |      |  | 521    |  
|Losses on disposal of financial assets                         |  |                   | (17    | ) |      |  | (2     | )
|Write-downs and reversal of write-downs of financial assets(1) |  |                   | 38     |   |      |  | (1     | )
|                                                               |  |                   |        |   |      | 
|Net gains (losses and write-downs) of financial assets         |  |                   | 2,673  |   |      |  | 518    |  
|                                                               |  |                   |        |   |      | 
|Net financial items                                            |  |                   | 1,521  |   |      |  | (347   | )
|                                                               |  |                   |        |   |      | 

F-45



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group







|    |                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | As from January 1, 2005, impairment losses recognised in
    profit or loss for an investment in an equity instrument
    classified as available for sale shall not be reversed through
    profit or loss.







14.     TAXES


|                                                 |  |                   |       |   |      |  |        | 
|------------------------------------------------ |  | ----------------- | ----- | - | ---- |  | ------ | 
|                                                 |  | 2004              |       |   | 2005 | 
|                                                 |  |                   |       |   |      | 
|                                                 |  | (NOK in millions) |      
|Profit before taxes and minority interests       |  |                   |       |   |      |  |        | 
|Norway                                           |  |                   | 9,404 |   |      |  | 6,704  | 
|Outside Norway(1)                                |  |                   | 470   |   |      |  | 5,887  | 
|Total profit before taxes and minority interests |  |                   | 9,874 |   |      |  | 12,591 | 
|Current taxes(2)                                 |  |                   |       |   |      |  |        | 
|Norway                                           |  |                   | 4     |   |      |  | 445    | 
|Outside Norway                                   |  |                   | 1,128 |   |      |  | 1,587  | 
|Total current taxes                              |  |                   | 1,132 |   |      |  | 2,032  | 
|Deferred taxes                                   |  |                   |       |   |      |  |        | 
|Norway                                           |  |                   | 1,421 |   |      |  | 977    | 
|Outside Norway                                   |  |                   | (92   | ) |      |  | 444    | 
|Total deferred taxes                             |  |                   | 1,329 |   |      |  | 1,421  | 
|Total income tax expense                         |  |                   | 2,461 |   |      |  | 3,453  | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes associated companies and subsidiaries outside Norway.
    Gains and losses from disposal of companies are related to the
    countries in which the disposed companies were located. The
    gains and losses were, however, to a large extent liable to tax
    in Norway. In 2004 new tax regulations were introduced in Norway
    related to gains and losses on realization of shareholdings, as
    explained below.                                                   
|   
|(2) | Up to, and including 2005 current taxes were primarily related
    to mobile companies outside Norway, due to tax losses carried
    forward in Norway. Current taxes did not include significant
    adjustments recognized in the periods for current tax of prior
    periods. However, in 2005, current taxes in Norway included the
    payment of NOK 334 million following the non-recognition of
    a tax loss derived from the liquidation of a wholly owned
    subsidiary.

F-46



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Effective tax rate




|                                                                                                       |  |                   |       |   |      |  |       |  
|------------------------------------------------------------------------------------------------------ |  | ----------------- | ----- | - | ---- |  | ----- | -
|                                                                                                       |  | 2004              |       |   | 2005 | 
|                                                                                                       |  |                   |       |   |      | 
|                                                                                                       |  | (NOK in millions) |      
|Expected income taxes according to corporate income tax rate in
    Norway (28%)                       |  |                   | 2,765 |   |      |  | 3,525 |  
|Tax rates outside Norway different from 28%                                                            |  |                   | (34   | ) |      |  | (81   | )
|Associated companies                                                                                   |  |                   | (267  | ) |      |  | (350  | )
|Net loss in subsidiaries outside Norway for which deferred tax
    assets have not been established    |  |                   | 181   |   |      |  | 618   |  
|Previously not recognized deferred tax assets in business
    combinations                             |  |                   | (30   | ) |      |  | (162  | )
|Non-taxable income                                                                                     |  |                   | (102  | ) |      |  | (128  | )
|Non-deductible expenses                                                                                |  |                   | 195   |   |      |  | 265   |  
|Write-downs of goodwill that are not tax deductible                                                    |  |                   | 842   |   |      |  | 12    |  
|Other deferred tax assets not recognized previously                                                    |  |                   | (461  | ) |      |  | (18   | )
|Non-taxable gain on sale of shares                                                                     |  |                   | (152  | ) |      |  | (30   | )
|Changes in tax law  previously recognized tax assets
    not realized                                 |  |                   | 257   |   |      |  |      |  
|Deferred taxes on retained earnings in subsidiaries and
    associated companies                       |  |                   | (375  | ) |      |  | 292   |  
|Other tax assets not recognized current year                                                           |  |                   | 39    |   |      |  | 16    |  
|Previously recognized tax assets  not realized or
    written-down (valuation allowance) current year |  |                   | 27    |   |      |  | 6     |  
|Conversion of inter-company debt                                                                       |  |                   |      |   |      |  | (249  | )
|Liquidation of Dansk Mobil Holding AS                                                                  |  |                   | (438  | ) |      |  | 438   |  
|Sale of Telenor Business Solutions AS                                                                  |  |                   |      |   |      |  | (701  | )
|Other                                                                                                  |  |                   | 14    |   |      |  |      |  
|Income tax expense (income)                                                                            |  |                   | 2,461 |   |      |  | 3,453 |  
|Effective tax rate in %                                                                                |  |                   | 24.9  |   |      |  | 27.4  |  



Comments on selected line items in the preceding table


Tax rates outside Norway different from 28%




F-47



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Associated companies




Net loss in subsidiaries outside Norway for which deferred
tax assets have not been established




Previously not recognized tax assets in business
combinations




Non-taxable income and non-deductible expenses




Write-downs of goodwill that are not tax deductible




Other deferred tax assets not recognized previously






F-48



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Non-taxable gain on sale of shares




Changes in tax laws in Norway  previously
recognized tax assets not realized




Deferred taxes on retained earnings in subsidiaries and
associated companies.






Conversion of inter-company debt




Liquidation of Dansk Mobil Holding AS




Sale of Telenor Business Solutions AS




Other uncertain tax positions not recognized




F-49



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group








Tax losses carried forward




|                                                                         |  |                   |       |  |        |       |       |        |  |  |          |  |  |       |       |  |       |  |     |  |  |  |       | 
|------------------------------------------------------------------------ |  | ----------------- | ----- |  | ------ | ----- | ----- | ------ |  |  | -------- |  |  | ----- | ----- |  | ----- |  | --- |  |  |  | ----- | 
|                                                                         |  |                   |       |  |        | Other |       |        |  |  |          |  | 
|                                                                         |  | Norway            |       |  | Sweden |       |       | Nordic |  |  | Pakistan |  |  | Other |       |  | Total | 
|                                                                         |  |                   |       |  |        |       |       |        |  |  |          |  |  |       |       |  |       | 
|                                                                         |  | (NOK in millions) |      
|2006                                                                     |  |                   |      |  |        |       |      |        |  |  | 208      |  |  |       |      |  |       |  | 102 |  |  |  | 310   | 
|2007                                                                     |  |                   |      |  |        |       |      |        |  |  | 16       |  |  |       |      |  |       |  | 45  |  |  |  | 61    | 
|2008                                                                     |  |                   |      |  |        |       |      |        |  |  | 26       |  |  |       |      |  |       |  | 17  |  |  |  | 43    | 
|2009                                                                     |  |                   |      |  |        |       |      |        |  |  | 28       |  |  |       |      |  |       |  | 21  |  |  |  | 49    | 
|2010                                                                     |  |                   |      |  |        |       |      |        |  |  | 47       |  |  |       | 30    |  |       |  | 7   |  |  |  | 84    | 
|2011 and later                                                           |  |                   |      |  |        |       |      |        |  |  | 94       |  |  |       | 577   |  |       |  | 135 |  |  |  | 806   | 
|Not time-limited                                                         |  |                   | 3,393 |  |        |       | 3,326 |        |  |  | 227      |  |  |       | 1,337 |  |       |  |    |  |  |  | 8,283 | 
|                                                                         |  |                   |       |  |        |       |       |        |  |  |          |  |  |       |       |  |       | 
|Total tax losses carried forward                                         |  |                   | 3,393 |  |        |       | 3,326 |        |  |  | 646      |  |  |       | 1,944 |  |       |  | 327 |  |  |  | 9,636 | 
|                                                                         |  |                   |       |  |        |       |       |        |  |  |          |  |  |       |       |  |       | 
|Of which not recognized as deferred tax assets (Valuation
    allowance) |  |                   | 231   |  |        |       | 3,104 |        |  |  | 636      |  |  |       | 926   |  |       |  | 324 |  |  |  | 5,221 | 
|                                                                         |  |                   |       |  |        |       |       |        |  |  |          |  |  |       |       |  |       | 
|Tax losses on which deferred tax asset has been recognized               |  |                   | 3,162 |  |        |       | 222   |        |  |  | 10       |  |  |       | 1,018 |  |       |  | 3   |  |  |  | 4,415 | 
|                                                                         |  |                   |       |  |        |       |       |        |  |  |          |  |  |       |       |  |       | 

F-50



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group






Deferred taxes as of December 31


|                                                                            |  |                   |        |   |             |            |        |            |  |  |        |   |            |             |        |   |            |  |        |   |  |  |        |  
|--------------------------------------------------------------------------- |  | ----------------- | ------ | - | ----------- | ---------- | ------ | ---------- |  |  | ------ | - | ---------- | ----------- | ------ | - | ---------- |  | ------ | - |  |  | ------ | -
|                                                                            |  |                   |        |   |             | Of which   |        |            |  |  |        |   | Of which   |            
|                                                                            |  |                   |        |   |             | assets not |        |            |  |  |        |   | assets not |            
|                                                                            |  |                   |        |   |             | recognized |        |            |  |  |        |   | recognized |            
|                                                                            |  |                   |        |   |             | (valuation |        |            |  |  |        |   | (valuation |            
|                                                                            |  | Assets            |        |   | Liabilities |            |        | allowance) |  |  | Assets |   |            | Liabilities |        |   | allowance) | 
|                                                                            |  | 2004              |        |   | 2004        |            |        | 2004       |  |  | 2005   |   |            | 2005        |        |   | 2005       | 
|                                                                            |  |                   |        |   |             |            |        |            |  |  |        |   |            |             |        |   |            | 
|                                                                            |  | (NOK in millions) |       
|Tangible and intangible assets                                              |  |                   | 2,464  |   |             |            | (2,866 | )          |  |  | (216   | ) |            |             | 4,405  |   |            |  | (4,718 | ) |  |  | (698   | )
|Associated companies                                                        |  |                   |       |   |             |            |       |            |  |  |       |   |            |             |       |   |            |  |       |   |  |  |       |  
|Undistributed earnings in foreign subsidiaries and associated
    companies |  |                   |       |   |             |            | (373   | )          |  |  |       |   |            |             |       |   |            |  | (606   | ) |  |  |       |  
|Other non-current items                                                     |  |                   | 898    |   |             |            | (695   | )          |  |  | (49    | ) |            |             | 1,637  |   |            |  | (1,245 | ) |  |  | (1     | )
|Total non-current assets and liabilities                                    |  |                   | 3,362  |   |             |            | (3,934 | )          |  |  | (265   | ) |            |             | 6,042  |   |            |  | (6,569 | ) |  |  | (699   | )
|Total current assets and liabilities                                        |  |                   | 330    |   |             |            | (55    | )          |  |  | (12    | ) |            |             | 1,406  |   |            |  | (1,078 | ) |  |  | (47    | )
|Tax losses carried forward                                                  |  |                   | 3,047  |   |             |            |       |            |  |  | (1,408 | ) |            |             | 2,871  |   |            |  |       |   |  |  | (1,543 | )
|                                                                            |  |                   |        |   |             |            |        |            |  |  |        |   |            |             |        |   |            | 
|Deferred taxes                                                              |  |                   | 6,739  |   |             |            | (3,989 | )          |  |  | (1,685 | ) |            |             | 10,319 |   |            |  | (7,647 | ) |  |  | (2,289 | )
|Net deferred tax assets                                                     |  |                   | 1,065  |   |             |            |       |            |  |  |       |   |            |             | 383    |   |            |  |       |   |  |  |       |  
|                                                                            |  |                   |        |   |             |            |        |            |  |  |        |   |            |             |        |   |            | 
|Of which deferred tax assets                                                |  |                   | 3,357  |   |             |            |       |            |  |  |       |   |            |             | 3,052  |   |            |  |       |   |  |  |       |  
|Of which deferred tax liabilities (note 19)                                 |  |                   | (2,292 | ) |             |            |       |            |  |  |       |   |            |             | (2,669 | ) |            |  |       |   |  |  |       |  



F-51



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




Change in net deferred tax assets


|                            |  |                   |        |   |      |  |        |  
|--------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                            |  | 2004              |        |   | 2005 | 
|                            |  |                   |        |   |      | 
|                            |  | (NOK in millions) |       
|As of January 1             |  |                   | 3,626  |   |      |  | 1,065  |  
|Recorded to equity(1)       |  |                   | (284   | ) |      |  | 57     |  
|Recorded to profit or loss  |  |                   | (1,329 | ) |      |  | (1,421 | )
|Exchange differences        |  |                   | 63     |   |      |  | (92    | )
|Acquisition of subsidiaries |  |                   | (999   | ) |      |  | 707    |  
|Disposal of subsidiaries    |  |                   | (12    | ) |      |  | 67     |  
|                            |  |                   |        |   |      | 
|As of December 31           |  |                   | 1,065  |   |      |  | 383    |  
|                            |  |                   |        |   |      | 






|    |                                                                                               
|--- | ----------------------------------------------------------------------------------------------
|(1) | The effect of the implementation of IAS 32 and 39 at
    January 1, 2005 was NOK (16) million.



Changes in deferred tax assets not recognized (valuation
allowances)


|                                                                         |  |                   |        |   |      |  |       |  
|------------------------------------------------------------------------ |  | ----------------- | ------ | - | ---- |  | ----- | -
|                                                                         |  | 2004              |        |   | 2005 | 
|                                                                         |  |                   |        |   |      | 
|                                                                         |  | (NOK in millions) |       
|Balance at the beginning of the year                                     |  |                   | 6,900  |   |      |  | 1,685 |  
|Changes in opening balance                                               |  |                   | (752   | ) |      |  | (160  | )
|Net losses from associated companies and subsidiaries outside
    Norway |  |                   | 151    |   |      |  | 618   |  
|Associated companies  changes in tax rules in Norway                    |  |                   | (4,605 | ) |      |  |      |  
|Other not recognized tax assets this year                                |  |                   | 71     |   |      |  | 16    |  
|Acquisitions and disposals                                               |  |                   | (55    | ) |      |  | 177   |  
|Currency adjustments                                                     |  |                   | (25    | ) |      |  | (47   | )
|                                                                         |  |                   |        |   |      | 
|Balance at the end of the year                                           |  |                   | 1,685  |   |      |  | 2,289 |  
|                                                                         |  |                   |        |   |      | 





F-52



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                                           
|--- | ------------------------------------------
|15. | AMORTIZATION, DEPRECIATION AND WRITE-DOWNS

Details of amortization, depreciation and write-downs:


|                              |  |                   |       |          |  |                  |       |         |  |      |       |      |  |      |    |      |  |  |       |  |  |  |       |  |  |  |   |  |  |  |    | 
|----------------------------- |  | ----------------- | ----- | -------- |  | ---------------- | ----- | ------- |  | ---- | ----- | ---- |  | ---- | -- | ---- |  |  | ----- |  |  |  | ----- |  |  |  | - |  |  |  | -- | 
|                              |  | Property, plant   |       |          |  | Other intangible |       | Prepaid
|                              |  | and equipment     |       | Goodwill |  | assets           |       | leases 
|                              |  |                   |       |          |  |                  |       |        
|                              |  | 2004              |       | 2005     |  | 2004             |       | 2005    |  | 2004 |       | 2005 |  | 2004 |    | 2005
|                              |  |                   |       |          |  |                  |       |         |  |      |       |      |  |      |    |     
|                              |  | (NOK in millions)
|Amortization and depreciation |  |                   | 7,737 |          |  |                  | 8,083 |         |  |      |      |      |  |      |   |      |  |  | 2,900 |  |  |  | 3,407 |  |  |  |  |  |  |  | 54 | 
|Write-downs                   |  |                   | 282   |          |  |                  | 488   |         |  |      | 3,129 |      |  |      | 46 |      |  |  | 120   |  |  |  | 53    |  |  |  |  |  |  |  |   | 
|                              |  |                   |       |          |  |                  |       |         |  |      |       |      |  |      |    |      |  |  |       |  |  |  |       |  |  |  |   |  |  |  |    | 
|Total                         |  |                   | 8,019 |          |  |                  | 8,571 |         |  |      | 3,129 |      |  |      | 46 |      |  |  | 3,020 |  |  |  | 3,460 |  |  |  |  |  |  |  | 54 | 
|                              |  |                   |       |          |  |                  |       |         |  |      |       |      |  |      |    |      |  |  |       |  |  |  |       |  |  |  |   |  |  |  |    | 









F-53



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Details of write-downs:


|                          |  |                     |     |             |  |            |       |                     |  |             |     |            |  |  |      |   |  |  |     |   |  |  |    | 
|------------------------- |  | ------------------- | --- | ----------- |  | ---------- | ----- | ------------------- |  | ----------- | --- | ---------- |  |  | ---- | - |  |  | --- | - |  |  | -- | 
|                          |  | 2004                |     | 2005       
|                          |  |                     |     |            
|                          |  |                     |     | Other       |  |            |       | Other              
|                          |  | Property, plant and |     |             |  | intangible |       | Property, plant and |  |             |     | intangible
|                          |  | equipment           |     | Goodwill(1) |  | assets     |       | equipment           |  | Goodwill(1) |     | assets    
|                          |  |                     |     |             |  |            |       |                     |  |             |     |           
|                          |  | (NOK in millions)  
|Telnor Mobil  Norway     |  |                     | 6   |             |  |            |      |                     |  |             | 9   |            |  |  | 14   |   |  |  | 2   |   |  |  |   | 
|Sonofon  Denmark         |  |                     | 208 |             |  |            | 3,074 |                     |  |             | 8   |            |  |  |     |   |  |  |    |   |  |  |   | 
|Kyivstar  Ukraine        |  |                     |    |             |  |            |      |                     |  |             |    |            |  |  | 15   |   |  |  |    |   |  |  |   | 
|Pannon GSM  Hungary      |  |                     | 21  |             |  |            |      |                     |  |             |    |            |  |  | 6    |   |  |  |    |   |  |  | 1  | 
|DiGi.Com  Malaysia       |  |                     |    |             |  |            |      |                     |  |             |    |            |  |  | 5    |   |  |  |    |   |  |  |   | 
|GrameenPhone  Bangladesh |  |                     | 3   |             |  |            |      |                     |  |             |    |            |  |  |     |   |  |  |    |   |  |  |   | 
|Other mobile operations   |  |                     | 14  |             |  |            |      |                     |  |             | 61  |            |  |  |     |   |  |  |    |   |  |  |   | 
|Fixed                     |  |                     | 13  |             |  |            | 27    |                     |  |             |    |            |  |  | 571  |   |  |  | (36 | ) |  |  | 52 | 
|Broadcast                 |  |                     | 12  |             |  |            | 25    |                     |  |             | 7   |            |  |  | (128 | ) |  |  | 75  |   |  |  |   | 
|Other operations          |  |                     | 5   |             |  |            | 3     |                     |  |             | 35  |            |  |  | 5    |   |  |  | 5   |   |  |  |   | 
|                          |  |                     |     |             |  |            |       |                     |  |             |     |            |  |  |      |   |  |  |     |   |  |  |    | 
|Total                     |  |                     | 282 |             |  |            | 3,129 |                     |  |             | 120 |            |  |  | 488  |   |  |  | 46  |   |  |  | 53 | 
|                          |  |                     |     |             |  |            |       |                     |  |             |     |            |  |  |      |   |  |  |     |   |  |  |    | 






|    |                   
|--- | ------------------
|(1) | See note 16 and 17





F-54



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                                                 
|--- | ------------------------------------------------
|16. | PROPERTY, PLANT, EQUIPMENT AND INTANGIBLE ASSETS

|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|---------------------------------------- |  | ----------------- | ------ | --------- |  | ---------- | ------ | ---------- |  | ------------- | ----- | --------- |  | --------- | ------ | ---- |  | ------- | ----- | ---------- |  | ----------- | ----- | ----- |  |  | ------ | - |  |  | ---- | - |  |  | ------ | - |  |  | ----- | - |  |  | ----- | - |  |  | ------- | -
|                                         |  |                   |        | Mobile    |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |      
|                                         |  | Local,            |        | telephone |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |      
|                                         |  | regional &        |        | network   |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |      
|                                         |  | trunk             |        | and       |  | Subscriber |        | Switches & |  | Radio         |       | Cable TV  |  |           |        |      |  | Support |       |            |  | Work in     |       |      
|                                         |  | networks          |        | switches  |  | equipment  |        | equipment  |  | installations |       | equipment |  | Buildings |        | Land |  | systems |       | Satellites |  | progress(1) |       | Total
|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |      
|                                         |  | (NOK in millions)
|As of January 1, 2004                    |  |                   | 33,354 |           |  |            | 10,759 |            |  |               | 1,370 |           |  |           | 16,286 |      |  |         | 4,606 |            |  |             | 1,575 |       |  |  | 10,692 |   |  |  | 697  |   |  |  | 7,446  |   |  |  | 1,790 |   |  |  | 1,573 |   |  |  | 90,148  |  
|Additions                                |  |                   | 1,184  |           |  |            | 4,169  |            |  |               | 73    |           |  |           | 596    |      |  |         | 256   |            |  |             | 50    |       |  |  | 141    |   |  |  | 60   |   |  |  | 912    |   |  |  | 630   |   |  |  | 681   |   |  |  | 8,752   |  
|Acquisition of subsidiaries              |  |                   | 2      |           |  |            | 1,742  |            |  |               |      |           |  |           |       |      |  |         | 5     |            |  |             |      |       |  |  | 674    |   |  |  | 10   |   |  |  | 183    |   |  |  |      |   |  |  | 226   |   |  |  | 2,842   |  
|Exchange differences                     |  |                   | (148   | )         |  |            | (1,012 | )          |  |               | 4     |           |  |           | (3     | )    |  |         |      |            |  |             | (1    | )     |  |  | (3     | ) |  |  | (7   | ) |  |  | (104   | ) |  |  |      |   |  |  | (76   | ) |  |  | (1,350  | )
|Disposal                                 |  |                   | (185   | )         |  |            | (64    | )          |  |               | (220  | )         |  |           | (185   | )    |  |         | (269  | )          |  |             | (95   | )     |  |  | (197   | ) |  |  | (10  | ) |  |  | (1,018 | ) |  |  |      |   |  |  |      |   |  |  | (2,243  | )
|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|As of January 1, 2005                    |  |                   | 34,207 |           |  |            | 15,594 |            |  |               | 1,227 |           |  |           | 16,694 |      |  |         | 4,598 |            |  |             | 1,529 |       |  |  | 11,307 |   |  |  | 750  |   |  |  | 7,419  |   |  |  | 2,420 |   |  |  | 2,404 |   |  |  | 98,149  |  
|Additions                                |  |                   | 1,642  |           |  |            | 7,838  |            |  |               | 111   |           |  |           | 660    |      |  |         | 431   |            |  |             | 104   |       |  |  | 419    |   |  |  | 61   |   |  |  | 1,298  |   |  |  |      |   |  |  | 1,174 |   |  |  | 13,738  |  
|Acquisition of subsidiaries              |  |                   |       |           |  |            | 266    |            |  |               |      |           |  |           | 220    |      |  |         |      |            |  |             | 34    |       |  |  | 118    |   |  |  | 183  |   |  |  | 193    |   |  |  |      |   |  |  | 4     |   |  |  | 1,018   |  
|Exchange differences                     |  |                   | 72     |           |  |            | 1,260  |            |  |               | (2    | )         |  |           | (4     | )    |  |         |      |            |  |             | (5    | )     |  |  | (19    | ) |  |  | 8    |   |  |  | 9      |   |  |  |      |   |  |  | 53    |   |  |  | 1,372   |  
|Disposal                                 |  |                   | (102   | )         |  |            | (189   | )          |  |               | (196  | )         |  |           | (238   | )    |  |         | (604  | )          |  |             | (15   | )     |  |  | (989   | ) |  |  | (116 | ) |  |  | (1,366 | ) |  |  |      |   |  |  | (2    | ) |  |  | (3,817  | )
|Reclassified as held for sale            |  |                   | (213   | )         |  |            |       |            |  |               | (13   | )         |  |           |       |      |  |         |      |            |  |             |      |       |  |  | (2     | ) |  |  |     |   |  |  | (99    | ) |  |  |      |   |  |  | (14   | ) |  |  | (341    | )
|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|As of December 31, 2005                  |  |                   | 35,606 |           |  |            | 24,769 |            |  |               | 1,127 |           |  |           | 17,332 |      |  |         | 4,425 |            |  |             | 1,647 |       |  |  | 10,834 |   |  |  | 886  |   |  |  | 7,454  |   |  |  | 2,420 |   |  |  | 3,619 |   |  |  | 110,119 |  
|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|Accumulated depreciation and write-downs |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|As of January 1, 2004                    |  |                   | 23,112 |           |  |            | 2,555  |            |  |               | 996   |           |  |           | 13,280 |      |  |         | 2,819 |            |  |             | 704   |       |  |  | 4,188  |   |  |  | 4    |   |  |  | 6,015  |   |  |  | 1,173 |   |  |  |      |   |  |  | 54,846  |  
|Depreciation                             |  |                   | 2,122  |           |  |            | 2,029  |            |  |               | 195   |           |  |           | 1,270  |      |  |         | 246   |            |  |             | 133   |       |  |  | 404    |   |  |  | 2    |   |  |  | 1,208  |   |  |  | 128   |   |  |  |      |   |  |  | 7,737   |  
|Write-downs                              |  |                   | 12     |           |  |            | 243    |            |  |               |      |           |  |           |       |      |  |         | 2     |            |  |             | 11    |       |  |  | 6      |   |  |  |     |   |  |  | 8      |   |  |  |      |   |  |  |      |   |  |  | 282     |  
|Exchange differences                     |  |                   | (41    | )         |  |            | (247   | )          |  |               | 3     |           |  |           | (2     | )    |  |         |      |            |  |             |      |       |  |  | 1      |   |  |  |     |   |  |  | (49    | ) |  |  |      |   |  |  |      |   |  |  | (335    | )
|Eliminated on disposal                   |  |                   | (160   | )         |  |            | (25    | )          |  |               | (109  | )         |  |           | (170   | )    |  |         | (270  | )          |  |             | (93   | )     |  |  | (99    | ) |  |  |     |   |  |  | (998   | ) |  |  |      |   |  |  |      |   |  |  | (1,924  | )
|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|As of January 1, 2005                    |  |                   | 25,045 |           |  |            | 4,555  |            |  |               | 1,085 |           |  |           | 14,378 |      |  |         | 2,797 |            |  |             | 755   |       |  |  | 4,500  |   |  |  | 6    |   |  |  | 6,184  |   |  |  | 1,301 |   |  |  |      |   |  |  | 60,606  |  
|Depreciation                             |  |                   | 2,026  |           |  |            | 2,981  |            |  |               | 99    |           |  |           | 958    |      |  |         | 275   |            |  |             | 139   |       |  |  | 360    |   |  |  | 4    |   |  |  | 1,088  |   |  |  | 153   |   |  |  |      |   |  |  | 8,083   |  
|Write-downs for the year                 |  |                   | 540    |           |  |            | 20     |            |  |               | 3     |           |  |           | 13     |      |  |         | 4     |            |  |             | 1     |       |  |  |       |   |  |  |     |   |  |  | 40     |   |  |  | (133  | ) |  |  |      |   |  |  | 488     |  
|Exchange differences                     |  |                   | 24     |           |  |            | 231    |            |  |               | (1    | )         |  |           | 2      |      |  |         |      |            |  |             | (1    | )     |  |  | (5     | ) |  |  |     |   |  |  | (48    | ) |  |  |      |   |  |  |      |   |  |  | 202     |  
|Disposal                                 |  |                   | (65    | )         |  |            | (160   | )          |  |               | (196  | )         |  |           | (229   | )    |  |         | (600  | )          |  |             | (14   | )     |  |  | (406   | ) |  |  |     |   |  |  | (1,319 | ) |  |  |      |   |  |  |      |   |  |  | (2,989  | )
|Reclassified as held for sale            |  |                   | (126   | )         |  |            |       |            |  |               | (11   | )         |  |           |       |      |  |         |      |            |  |             |      |       |  |  | (1     | ) |  |  |     |   |  |  | (91    | ) |  |  |      |   |  |  |      |   |  |  | (229    | )
|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|As of December 31, 2005                  |  |                   | 27,444 |           |  |            | 7,627  |            |  |               | 979   |           |  |           | 15,122 |      |  |         | 2,476 |            |  |             | 880   |       |  |  | 4,448  |   |  |  | 10   |   |  |  | 5,854  |   |  |  | 1,321 |   |  |  |      |   |  |  | 66,161  |  
|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|Carrying amount                          |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|As of December 31, 2005                  |  |                   | 8,162  |           |  |            | 17,142 |            |  |               | 148   |           |  |           | 2,210  |      |  |         | 1,949 |            |  |             | 767   |       |  |  | 6,386  |   |  |  | 876  |   |  |  | 1,600  |   |  |  | 1,099 |   |  |  | 3,619 |   |  |  | 43,958  |  
|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  
|As of December 31, 2004                  |  |                   | 9,162  |           |  |            | 11,039 |            |  |               | 142   |           |  |           | 2,316  |      |  |         | 1,801 |            |  |             | 774   |       |  |  | 6,807  |   |  |  | 744  |   |  |  | 1,235  |   |  |  | 1,119 |   |  |  | 2,404 |   |  |  | 37,543  |  
|                                         |  |                   |        |           |  |            |        |            |  |               |       |           |  |           |        |      |  |         |       |            |  |             |       |       |  |  |        |   |  |  |      |   |  |  |        |   |  |  |       |   |  |  |       |   |  |  |         |  






|    |               
|--- | --------------
|(1) | Net additions.



F-55



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group






|                                        |  |                   |     |  |       |  |       |           |  |  |     | 
|--------------------------------------- |  | ----------------- | --- |  | ----- |  | ----- | --------- |  |  | --- | 
|                                        |  | Within            |     |  | 2-5   |  |       | More than | 
|                                        |  | 1 Year            |     |  | Years |  |       | 5 Years   | 
|                                        |  |                   |     |  |       |  |       |           | 
|                                        |  | (NOK in millions) |    
|Future minimum lease payments           |  |                   | 402 |  |       |  | 1,330 |           |  |  | 815 | 
|Less amount representing interest       |  |                   | 105 |  |       |  | 310   |           |  |  | 284 | 
|Present value Finance lease obligations |  |                   | 297 |  |       |  | 1,020 |           |  |  | 531 | 





F-56



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Intangible assets (excl. goodwill)


|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|---------------------------------------- |  | ----------------- | ----- | -------- |  | ------ | ------ | -------- |  | --------- | ----- | ----- |  | ----------- | ----- | ----- |  |  | ----- | - |  |  | ----- | - |  |  | --- | - |  |  | ------ | -
|                                         |  |                   |       |          |  |        |        |          |  | Internal  |       |       |  |             |       |      
|                                         |  | Customer          |       |          |  | Trade- |        | Software |  | generated |       |       |  | Work in     |       |      
|                                         |  | base              |       | Licenses |  | marks  |        | acquired |  | software  |       | Other |  | progress(1) |       | Total
|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |      
|                                         |  | (NOK in millions)
|As of January 1, 2004                    |  |                   | 2,721 |          |  |        | 2,040  |          |  |           | 580   |       |  |             | 3,500 |       |  |  | 1,968 |   |  |  | 558   |   |  |  | 341 |   |  |  | 11,708 |  
|Additions                                |  |                   | 23    |          |  |        | 2,637  |          |  |           |      |       |  |             | 908   |       |  |  | 88    |   |  |  | 124   |   |  |  | 75  |   |  |  | 3,855  |  
|Internal generated                       |  |                   |      |          |  |        |       |          |  |           |      |       |  |             |      |       |  |  | 58    |   |  |  | 13    |   |  |  | 22  |   |  |  | 93     |  
|Acquisition of subsidiary                |  |                   | 1,634 |          |  |        | 97     |          |  |           | 889   |       |  |             | 1,454 |       |  |  |      |   |  |  | 662   |   |  |  | 7   |   |  |  | 4,743  |  
|Exchange differences                     |  |                   | (84   | )        |  |        | (341   | )        |  |           | (39   | )     |  |             | (148  | )     |  |  | (2    | ) |  |  | (20   | ) |  |  | (3  | ) |  |  | (637   | )
|Disposal                                 |  |                   | (3    | )        |  |        |       |          |  |           |      |       |  |             | (114  | )     |  |  | (4    | ) |  |  | (26   | ) |  |  | (20 | ) |  |  | (167   | )
|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|As of January 1, 2005                    |  |                   | 4,291 |          |  |        | 4,433  |          |  |           | 1,430 |       |  |             | 5,600 |       |  |  | 2,108 |   |  |  | 311   |   |  |  | 422 |   |  |  | 19,595 |  
|Additions                                |  |                   | 15    |          |  |        | 787    |          |  |           |      |       |  |             | 1,117 |       |  |  | 202   |   |  |  | 57    |   |  |  | 266 |   |  |  | 2,444  |  
|Internal generated                       |  |                   |      |          |  |        |       |          |  |           |      |       |  |             | 25    |       |  |  | 81    |   |  |  |      |   |  |  | 20  |   |  |  | 126    |  
|Acquisition of subsidiaries              |  |                   | 1,849 |          |  |        | 6,133  |          |  |           | 1,256 |       |  |             | 469   |       |  |  |      |   |  |  | 958   |   |  |  |    |   |  |  | 10,665 |  
|Exchange differences                     |  |                   | (20   | )        |  |        | 385    |          |  |           | 8     |       |  |             | 133   |       |  |  | (4    | ) |  |  | (29   | ) |  |  | 2   |   |  |  | 475    |  
|Disposal                                 |  |                   | (2    | )        |  |        | (23    | )        |  |           |      |       |  |             | (31   | )     |  |  | (2    | ) |  |  | (103  | ) |  |  |    |   |  |  | (161   | )
|Reclassified as held for sale            |  |                   | (1    | )        |  |        | (59    | )        |  |           |      |       |  |             | (11   | )     |  |  |       |   |  |  | (13   | ) |  |  | (3  | ) |  |  | (87    | )
|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|As of December 31, 2005                  |  |                   | 6,132 |          |  |        | 11,656 |          |  |           | 2,694 |       |  |             | 7,302 |       |  |  | 2,385 |   |  |  | 2,181 |   |  |  | 707 |   |  |  | 33,057 |  
|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|Accumulated amortization and write-downs |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|As of January 1, 2004                    |  |                   | 989   |          |  |        | 1,068  |          |  |           | 101   |       |  |             | 1,812 |       |  |  | 1,208 |   |  |  | 473   |   |  |  |    |   |  |  | 5,651  |  
|Amortization                             |  |                   | 834   |          |  |        | 189    |          |  |           | 103   |       |  |             | 1,163 |       |  |  | 342   |   |  |  | 269   |   |  |  |    |   |  |  | 2,900  |  
|Write-downs                              |  |                   |      |          |  |        | 42     |          |  |           |      |       |  |             | 11    |       |  |  |      |   |  |  | 67    |   |  |  |    |   |  |  | 120    |  
|Exchange differences                     |  |                   | (15   | )        |  |        | (6     | )        |  |           | (4    | )     |  |             | (10   | )     |  |  | (1    | ) |  |  | 4     |   |  |  |    |   |  |  | (32    | )
|Disposal                                 |  |                   | (4    | )        |  |        |       |          |  |           |      |       |  |             | (89   | )     |  |  | (1    | ) |  |  | (26   | ) |  |  |    |   |  |  | (120   | )
|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|As of January 1, 2005                    |  |                   | 1,804 |          |  |        | 1,293  |          |  |           | 200   |       |  |             | 2,887 |       |  |  | 1,548 |   |  |  | 787   |   |  |  |    |   |  |  | 8,519  |  
|Amortization                             |  |                   | 1,073 |          |  |        | 336    |          |  |           | 132   |       |  |             | 1,430 |       |  |  | 258   |   |  |  | 178   |   |  |  |    |   |  |  | 3,407  |  
|Write-downs                              |  |                   | 16    |          |  |        |       |          |  |           |      |       |  |             | 1     |       |  |  | 36    |   |  |  |      |   |  |  |    |   |  |  | 53     |  
|Exchange differences                     |  |                   | (12   | )        |  |        | 15     |          |  |           | 1     |       |  |             | 38    |       |  |  | (1    | ) |  |  | (31   | ) |  |  |    |   |  |  | 10     |  
|Disposal                                 |  |                   |      |          |  |        | (23    | )        |  |           |      |       |  |             | (13   | )     |  |  |      |   |  |  | (103  | ) |  |  |    |   |  |  | (139   | )
|Reclassified as held for sale            |  |                   | (1    | )        |  |        | (18    | )        |  |           |      |       |  |             | (6    | )     |  |  |      |   |  |  | (13   | ) |  |  |    |   |  |  | (38    | )
|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|As of December 31, 2005                  |  |                   | 2,880 |          |  |        | 1,603  |          |  |           | 333   |       |  |             | 4,337 |       |  |  | 1,841 |   |  |  | 818   |   |  |  |    |   |  |  | 11,812 |  
|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|Carrying amount                          |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|As of December 31, 2005                  |  |                   | 3,252 |          |  |        | 10,053 |          |  |           | 2,361 |       |  |             | 2,965 |       |  |  | 544   |   |  |  | 1,363 |   |  |  | 707 |   |  |  | 21,245 |  
|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  
|As of December 31, 2004                  |  |                   | 2,487 |          |  |        | 3,140  |          |  |           | 1,230 |       |  |             | 2,713 |       |  |  | 560   |   |  |  | 524   |   |  |  | 422 |   |  |  | 11,076 |  
|                                         |  |                   |       |          |  |        |        |          |  |           |       |       |  |             |       |       |  |  |       |   |  |  |       |   |  |  |     |   |  |  |        |  






|    |              
|--- | -------------
|(1) | Net additions





F-57



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




DTACs concession right






|         |  |                        |            |               |  |  |    | 
|-------- |  | ---------------------- | ---------- | ------------- |  |  | -- | 
|         |  |                        |            | Percentage of
|         |  |                        |            | revenues     
|Year     |  | Minimum annual payment |            | per annum    
|         |  |                        |            |              
|         |  | (NOK in millions(1))   |            | %            
|1 to 4   |  |                        | 4 to 25    |               |  |  | 12 | 
|5        |  |                        | 58         |               |  |  | 25 | 
|6 to 15  |  |                        | 63 to 99   |               |  |  | 20 | 
|16 to 20 |  |                        | 123 to 127 |               |  |  | 25 | 
|21 to 27 |  |                        | 124 to 198 |               |  |  | 30 | 






|    |                                                                                
|--- | -------------------------------------------------------------------------------
|(1) | Converted from Baht to NOK based on exchange rates as of
    December 31, 2005.





F-58



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Estimated future amortization expenses




|                                |  |                   |       |  |      |  |       |      |  |  |       |  |  |      |       |  |  |  |       | 
|------------------------------- |  | ----------------- | ----- |  | ---- |  | ----- | ---- |  |  | ----- |  |  | ---- | ----- |  |  |  | ----- | 
|                                |  | 2006              |       |  | 2007 |  |       | 2008 |  |  | 2009  |  |  | 2010 |      
|                                |  |                   |       |  |      |  |       |      |  |  |       |  |  |      |      
|                                |  | (NOK in millions) |      
|Customer Base                   |  |                   | 1,367 |  |      |  | 999   |      |  |  | 593   |  |  |      | 159   |  |  |  | 81    | 
|Licences                        |  |                   | 753   |  |      |  | 766   |      |  |  | 757   |  |  |      | 755   |  |  |  | 754   | 
|Trademarks                      |  |                   | 204   |  |      |  | 204   |      |  |  | 204   |  |  |      | 204   |  |  |  | 204   | 
|Software acquired               |  |                   | 1,308 |  |      |  | 929   |      |  |  | 591   |  |  |      | 131   |  |  |  | 59    | 
|Software  internally generated |  |                   | 196   |  |      |  | 157   |      |  |  | 137   |  |  |      | 50    |  |  |  | 5     | 
|Other                           |  |                   | 242   |  |      |  | 175   |      |  |  | 158   |  |  |      | 146   |  |  |  | 110   | 
|Construction in progress        |  |                   | 51    |  |      |  | 82    |      |  |  | 82    |  |  |      | 66    |  |  |  | 52    | 
|                                |  |                   |       |  |      |  |       |      |  |  |       |  |  |      |      
|Total                           |  |                   | 4,121 |  |      |  | 3,312 |      |  |  | 2,522 |  |  |      | 1,511 |  |  |  | 1,265 | 
|                                |  |                   |       |  |      |  |       |      |  |  |       |  |  |      |      

Goodwill


|                                                                                            |  |                   |       |   |         |  |       |          |  |       |          |   |  |            |     |   |       |  |       |           |        |  |              |         |  |       |       |   |  |  |        |   |  |  |        |  
|------------------------------------------------------------------------------------------- |  | ----------------- | ----- | - | ------- |  | ----- | -------- |  | ----- | -------- | - |  | ---------- | --- | - | ----- |  | ----- | --------- | ------ |  | ------------ | ------- |  | ----- | ----- | - |  |  | ------ | - |  |  | ------ | -
|                                                                                            |  |                   |       |   |         |  |       |          |  | Other |          |   |  |            |     |   |       |  | Total |          
|                                                                                            |  | Sonofon           |       |   | Pannon  |  |       | Digi.com |  |       | Kyivstar |   |  | mobile     |     |   |       |  |       |           | Other/ |  |              | Telenor | 
|                                                                                            |  | Denmark           |       |   | Hungary |  |       | Malaysia |  |       | Ukraine  |   |  | operations |     |   | Fixed |  |       | Broadcast |        |  | Eliminations |         |  | Group |      
|                                                                                            |  |                   |       |   |         |  |       |          |  |       |          |   |  |            |     |   |       |  |       |           |        |  |              |         |  |       |      
|                                                                                            |  | (NOK in millions) |      
|As of January 1, 2004  NGAAP                                                               |  |                   |      |   |         |  | 5,623 |          |  |       | 2,897    |   |  |            | 337 |   |       |  |      |           |        |  | 157          |         |  |       | 2,470 |   |  |  | 4,031  |   |  |  | 15,515 |  
|IFRS adjustments                                                                            |  |                   |      |   |         |  | (598  | )        |  |       | (2,329   | ) |  |            | (49 | ) |       |  |      |           |        |  | (157         | )       |  |       | (404  | ) |  |  | (2,394 | ) |  |  | (5,931 | )
|As of January 1, 2004 IFRS                                                                  |  |                   |      |   |         |  | 5,025 |          |  |       | 568      |   |  |            | 288 |   |       |  |      |           |        |  |             |         |  |       | 2,066 |   |  |  | 1,637  |   |  |  | 9,584  |  
|Exchange differences                                                                        |  |                   | (403  | ) |         |  | 203   |          |  |       | (54      | ) |  |            | (28 | ) |       |  | (2    | )         |        |  | 5            |         |  |       | 16    |   |  |  | 68     |   |  |  | (195   | )
|Arising on acquisition of subsidiaries                                                      |  |                   | 6,636 |   |         |  |      |          |  |       |         |   |  |            | 4   |   |       |  | 104   |           |        |  | 25           |         |  |       | (23   | ) |  |  | 459    |   |  |  | 7,205  |  
|Eliminated on disposal of subsidiaries                                                      |  |                   |      |   |         |  |      |          |  |       |         |   |  |            |    |   |       |  |      |           |        |  |             |         |  |       |      |   |  |  | (111   | ) |  |  | (111   | )
|As of December 31, 2004                                                                     |  |                   | 6,233 |   |         |  | 5,228 |          |  |       | 514      |   |  |            | 264 |   |       |  | 102   |           |        |  | 30           |         |  |       | 2,059 |   |  |  | 2,053  |   |  |  | 16,483 |  
|Exchange differences                                                                        |  |                   | (209  | ) |         |  | (300  | )        |  |       | 66       |   |  |            | 47  |   |       |  | 42    |           |        |  | 68           |         |  |       | (9    | ) |  |  | (6     | ) |  |  | (301   | )
|Arising on acquisition of subsidiaries                                                      |  |                   | 1     |   |         |  |      |          |  |       |         |   |  |            |    |   |       |  | 2,244 |           |        |  | 5,431        |         |  |       | 4     |   |  |  | 52     |   |  |  | 7,732  |  
|Eliminated on disposal of subsidiaries                                                      |  |                   |      |   |         |  |      |          |  |       |         |   |  |            |    |   |       |  |      |           |        |  | (43          | )       |  |       |      |   |  |  | (99    | ) |  |  | (142   | )
|As of December 31, 2005                                                                     |  |                   | 6,025 |   |         |  | 4,928 |          |  |       | 580      |   |  |            | 311 |   |       |  | 2,388 |           |        |  | 5,486        |         |  |       | 2,054 |   |  |  | 2,000  |   |  |  | 23,772 |  
|                                                                                            |  |                   |       |   |         |  |       |          |  |       |          |   |  |            |     |   |       |  |       |           |        |  |              |         |  |       |       |   |  |  |       |   |  |  |       |  
|Amortisation and impairment                                                                 |  |                   |       |   |         |  |       |          |  |       |          |   |  |            |     |   |       |  |       |           |        |  |              |         |  |       |       |   |  |  |       |   |  |  |       |  
|As of January 1, 2004 NGAAP                                                                 |  |                   |      |   |         |  | 598   |          |  |       | 2,329    |   |  |            | 49  |   |       |  |      |           |        |  | 501          |         |  |       | 404   |   |  |  | 2,394  |   |  |  | 6,275  |  
|Negative goodwill taken to income                                                           |  |                   |      |   |         |  |      |          |  |       |         |   |  |            |    |   |       |  |      |           |        |  | (344         | )       |  |       |      |   |  |  |       |   |  |  | (344   | )
|Elimination of amortisation & impairment loss
    accumulated prior to the adoption of IFRS |  |                   |      |   |         |  | (598  | )        |  |       | (2,329   | ) |  |            | (49 | ) |       |  |      |           |        |  | (157         | )       |  |       | (404  | ) |  |  | (2,394 | ) |  |  | (5,931 | )
|As of January 1, 2004 IFRS                                                                  |  |                   |      |   |         |  |      |          |  |       |         |   |  |            |    |   |       |  |      |           |        |  |             |         |  |       |      |   |  |  |       |   |  |  |       |  
|Impairment 2004                                                                             |  |                   | 3,074 |   |         |  |      |          |  |       |         |   |  |            |    |   |       |  |      |           |        |  | 27           |         |  |       | 24    |   |  |  | 4      |   |  |  | 3,129  |  
|Impairment as of December 31, 2004                                                          |  |                   | 3,074 |   |         |  |      |          |  |       |         |   |  |            |    |   |       |  |      |           |        |  | 27           |         |  |       | 24    |   |  |  | 4      |   |  |  | 3,129  |  
|Exchange differences                                                                        |  |                   | (103  | ) |         |  |      |          |  |       |         |   |  |            |    |   |       |  |      |           |        |  |             |         |  |       |      |   |  |  |       |   |  |  | (103   | )
|Impairment 2005                                                                             |  |                   |      |   |         |  |      |          |  |       |         |   |  |            |    |   |       |  |      |           |        |  | (36          | )       |  |       | 75    |   |  |  | 7      |   |  |  | 46     |  
|Impairment as of December 31, 2005                                                          |  |                   | 2,971 |   |         |  |      |          |  |       |         |   |  |            |    |   |       |  |      |           |        |  | (9           | )       |  |       | 99    |   |  |  | 11     |   |  |  | 3,072  |  
|Carrying amount of goodwill 2005                                                            |  |                   | 3,054 |   |         |  | 4,928 |          |  |       | 580      |   |  |            | 311 |   |       |  | 2,388 |           |        |  | 5,495        |         |  |       | 1,955 |   |  |  | 1,989  |   |  |  | 20,700 |  
|Carrying amount of goodwill 2004                                                            |  |                   | 3,159 |   |         |  | 5,228 |          |  |       | 514      |   |  |            | 264 |   |       |  | 102   |           |        |  | 3            |         |  |       | 2,035 |   |  |  | 2,049  |   |  |  | 13,354 |  

F-59



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                               
|--- | ------------------------------
|17. | IMPAIRMENT TESTING OF GOODWILL





|                                  |  |                 |        |  |      |  |        | 
|--------------------------------- |  | --------------- | ------ |  | ---- |  | ------ | 
|                                  |  | Carrying amount |       
|                                  |  | of goodwill     |       
|                                  |  |                 |       
|                                  |  | 2004            |        |  | 2005 | 
|                                  |  |                 |        |  |      | 
|                                  |  | NOK in millions |       
|Pannon, Hungary                   |  |                 | 5,228  |  |      |  | 4,928  | 
|Sonofon, Denmark                  |  |                 | 3,159  |  |      |  | 3,054  | 
|DTAC, Thailand                    |  |                 |       |  |      |  | 2,288  | 
|Bredbandsbolaget, Sweden          |  |                 |       |  |      |  | 4,433  | 
|Cybercity, Denmark                |  |                 |       |  |      |  | 1,066  | 
|Broadcast, DTH operation, Nordic  |  |                 | 1,707  |  |      |  | 1,632  | 
|EDB Business Partner, Norway      |  |                 | 1,981  |  |      |  | 1,897  | 
|Other(1)                          |  |                 | 1,279  |  |      |  | 1,402  | 
|                                  |  |                 |        |  |      | 
|Total carrying amount of goodwill |  |                 | 13,354 |  |      |  | 20,700 | 
|                                  |  |                 |        |  |      | 






|    |                                                                        
|--- | -----------------------------------------------------------------------
|(1) | Other includes primarily DiGi.Com  Malaysia and
    Kyivstar  Ukraine







F-60



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                          |  |                |      |   |             |  |      |      |  |  |      |   |  |  |    | 
|------------------------- |  | -------------- | ---- | - | ----------- |  | ---- | ---- |  |  | ---- | - |  |  | -- | 
|                          |  | Discount       |      |   | Long-term   | 
|                          |  | (nominal) rate |      |   | growth rate | 
|                          |  | after tax      |      |   | (includes   | 
|                          |  | (WACC)         |      |   | inflation)  | 
|                          |  |                |      |   |             | 
|                          |  | 2004           |      |   | 2005        |  |      | 2004 |  |  | 2005 |  
|                          |  |                |      |   |             |  |      |      |  |  |      |  
|Pannon  Hungary          |  |                | 12.5 | % |             |  | 10.8 | %    |  |  | 2    | % |  |  | 2% | 
|Sonofon  Denmark(1)      |  |                | 8.2  | % |             |  | 7.3  | %    |  |  | 2    | % |  |  | 2% | 
|Bredbandsbolaget  Sweden |  |                |     |   |             |  | 7.9  | %    |  |  |     |   |  |  | 2% | 
|Cybercity  Denmark       |  |                |     |   |             |  | 7.9  | %    |  |  |     |   |  |  | 2% | 
|Broadcast DTH operation   |  |                | 8.8  | % |             |  | 8.4  | %    |  |  | 2    | % |  |  | 2% | 






|    |                                                                                                                                           
|--- | ------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The valuation in 2004 of Sonofon was performed with assistance
    from external financial experts based on various valuation
    methods.







Discount rates 


Growth rates


Average EBITDA margin 


Capital expenditure (Capex) 


Market shares


F-61



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group






Cash generating units where a reasonable possible change in a
key assumption could result in an impairment charge:


Bredbandsbolaget




Cybercity




Impairment






|    |                     
|--- | --------------------
|18. | ASSOCIATED COMPANIES

|                                                                                               |  |                   |        |      |  |  |        |  
|---------------------------------------------------------------------------------------------- |  | ----------------- | ------ | ---- |  |  | ------ | -
|                                                                                               |  | 2004              |        | 2005
|                                                                                               |  |                   |        |     
|                                                                                               |  | (NOK in millions)
|Balance as of January 1                                                                        |  |                   | 9,870  |      |  |  | 6,500  |  
|Additions                                                                                      |  |                   | 166    |      |  |  | 93     |  
|Transferred to/from other investments                                                          |  |                   | (3,938 | )    |  |  | (1,092 | )
|Disposals                                                                                      |  |                   | (41    | )    |  |  | (29    | )
|Net income                                                                                     |  |                   | 954    |      |  |  | 1,406  |  
|Gains (losses) on disposal                                                                     |  |                   | 32     |      |  |  | (1     | )
|Write-down of Golden Telecom Inc.(1)                                                           |  |                   |       |      |  |  | (172   | )
|Equity adjustments                                                                             |  |                   | (7     | )    |  |  | (46    | )
|Translation adjustments                                                                        |  |                   | (536   | )    |  |  | 624    |  
|                                                                                               |  |                   |        |      |  |  |        |  
|Balance as of December 31                                                                      |  |                   | 6,500  |      |  |  | 7,283  |  
|Of which investments carried with a negative value (classified
    as provisions) (note 21)(2) |  |                   | 102    |      |  |  | 141    |  
|                                                                                               |  |                   |        |      |  |  |        |  
|Total associated companies                                                                     |  |                   | 6,602  |      |  |  | 7,424  |  
|                                                                                               |  |                   |        |      |  |  |        |  

F-62



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group







|    |                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In 2005, the value of Golden Telecom was written down to the
    fair value, which was based on the quoted market price as of
    December 31, 2005.
|   
|(2) | Associated companies are carried at negative values where
    Telenor has a corresponding liability above and beyond the
    capital invested.      



Specifications of investments in associated companies


|                                    |  |                   |      |            |              |         |        |             |  |       |              |   |            |             |       |            |              |  |     |   |  |  |       |  
|----------------------------------- |  | ----------------- | ---- | ---------- | ------------ | ------- | ------ | ----------- |  | ----- | ------------ | - | ---------- | ----------- | ----- | ---------- | ------------ |  | --- | - |  |  | ----- | -
|                                    |  |                   |      |            |              | Invest- |        |             |  |       |              |   |           
|                                    |  |                   |      | Book value |              |         | ments/ |             |  | Share |              |   | Equity and |             |       | Book value |             
|                                    |  | Share             |      |            | December 31, |         |        | disposals   |  |       | of net       |   |            | translation |       |            | December 31, | 
|Company                             |  | owned in %        |      |            | 2004         |         |        | during 2005 |  |       | income(1)(2) |   |            | adjustments |       |            | 2005         | 
|                                    |  |                   |      |            |              |         |        |             |  |       |              |   |            |             |       |            |              | 
|                                    |  | (NOK in millions) |     
|VimpelCom(3)(7)                     |  |                   | 29.9 |            |              |         | 3,015  |             |  |       |             |   |            |             | 1,305 |            |              |  | 452 |   |  |  | 4,772 |  
|DTAC(4)                             |  |                   |     |            |              |         | 586    |             |  |       | (710         | ) |            |             | 85    |            |              |  | 39  |   |  |  |      |  
|UCOM(4)                             |  |                   |     |            |              |         | 235    |             |  |       | (259         | ) |            |             | 9     |            |              |  | 15  |   |  |  |      |  
|ONE GmbH(5)                         |  |                   | 17.5 |            |              |         | 606    |             |  |       | (110         | ) |            |             | (51   | )          |              |  | (26 | ) |  |  | 419   |  
|Wireless Matrix Corporation(7)      |  |                   | 25.2 |            |              |         | 27     |             |  |       |             |   |            |             | 4     |            |              |  | 5   |   |  |  | 36    |  
|Kjedehuset AS                       |  |                   | 49.0 |            |              |         | 1      |             |  |       |             |   |            |             | 30    |            |              |  |    |   |  |  | 31    |  
|Glocalnet AB(6),(7)                 |  |                   | 37.2 |            |              |         | 96     |             |  |       | 26           |   |            |             | (56   | )          |              |  | (4  | ) |  |  | 62    |  
|Golden Telecom Inc(7)               |  |                   | 20.3 |            |              |         | 1,272  |             |  |       |             |   |            |             | (80   | )          |              |  | 111 |   |  |  | 1,303 |  
|APR Media Holding AS                |  |                   | 44.8 |            |              |         | 426    |             |  |       |             |   |            |             | 66    |            |              |  |    |   |  |  | 492   |  
|Otrum Electronics ASA(7)            |  |                   | 33.1 |            |              |         | 96     |             |  |       |             |   |            |             | 9     |            |              |  |    |   |  |  | 105   |  
|World Wide Mobile Communications AS |  |                   | 45.0 |            |              |         | 56     |             |  |       |             |   |            |             | 6     |            |              |  | (1  | ) |  |  | 61    |  
|Bravida ASA                         |  |                   | 46.9 |            |              |         | (93    | )           |  |       |             |   |            |             | (45   | )          |              |  |    |   |  |  | (138  | )
|The Mobile Media Company AS         |  |                   | 40.6 |            |              |         | 23     |             |  |       |             |   |            |             | (17   | )          |              |  |    |   |  |  | 6     |  
|Maritime Communications Partner AS  |  |                   | 38.7 |            |              |         | 21     |             |  |       | 17           |   |            |             | (7    | )          |              |  |    |   |  |  | 31    |  
|Others                              |  |                   |     |            |              |         | 133    |             |  |       | 8            |   |            |             | (25   | )          |              |  | (13 | ) |  |  | 103   |  
|                                    |  |                   |      |            |              |         |        |             |  |       |              |   |            |             |       |            |              | 
|Total                               |  |                   |      |            |              |         | 6,500  |             |  |       | (1,028       | ) |            |             | 1,233 |            |              |  | 578 |   |  |  | 7,283 |  
|                                    |  |                   |      |            |              |         |        |             |  |       |              |   |            |             |       |            |              | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes Telenors share of net income after taxes and
    pretax gains and losses on disposal.                                                                                                                                                                                                                                                                                                                                    
|   
|(2) | For some associated companies, financial statements as of the
    Groups balance sheet date are not available. In such
    instances, the most recent financial statements (as of a date
    not more than three months prior to the Groups balance
    sheet date) are used, and estimates for the last period are made
    based on publicly available information. Actual figures may
    differ from the preliminary figures.
|   
|(3) | The other main shareholder of VimpelCom has a put option over
    its shares in VimpelCom that could require Telenor to acquire
    its shares if Telenor takes control in VimpelCom. In addition,
    if one shareholder acquires more than 45% of the shares in
    VimpelCom, according to the statutes this shareholder will have
    to make a mandatory offer on the remaining shares.                                       

F-63



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | VimpelCom reports their contingent liabilities in their public
    filings and may provide additional information in their 2005
    financial statements. VimpelCom states that on January 10,
    2005, KaR-Tel received an order to pay issued by the
    Savings Deposit Insurance Fund (the Fund), a Turkish
    state agency, in the amount of approximately
    USD5.5 billion. VimpelCom stated that in the event of an
    adverse resolution of this matter, and any others that may arise
    in connection therewith, could have a material adverse effect on
    VimpelComs business, financial condition and results of
    operations, including an event of default under some or all of
    VimpelComs outstanding indebtedness



|    |                                                                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | As of October 26, 2005 UCOM and DTAC became subsidiaries.
    See note 1 for more information.                                                                                                                                                                                      
|   
|(5) | ONE GmbH is accounted for as an associated company because of
    Telenors significant influence due to a shareholders
    agreement.                                                                                                                                             
|   
|(6) | Glocalnet AB became a subsidiary in 2006.                                                                                                                                                                                                                                           
|   
|(7) | Market values of listed associated companies as of
    December 31, 2005: VimpelCom: NOK 18,363 million,
    Wireless Matrix Corporation: NOK 54 million, Glocalnet
    AB: NOK 305 million, Golden Telecom Inc.:
    NOK 1,300 million, Otrum Electronics ASA:
    NOK 196 million.



|                      |  |                   |        |  |      |  |        | 
|--------------------- |  | ----------------- | ------ |  | ---- |  | ------ | 
|                      |  | 2004              |        |  | 2005 | 
|                      |  |                   |        |  |      | 
|                      |  | (NOK in millions) |       
|Income Statement Data |  |                   |        |  |      |  |        | 
|Revenues              |  |                   | 17,703 |  |      |  | 18,360 | 
|Net income            |  |                   | 986    |  |      |  | 1,233  | 
|Balance Sheet Data    |  |                   |        |  |      |  |        | 
|Total assets          |  |                   | 18,992 |  |      |  | 16,932 | 
|Total liabilities     |  |                   | 12,492 |  |      |  | 9,649  | 
|                      |  |                   |        |  |      | 
|Net assets            |  |                   | 6,500  |  |      |  | 7,283  | 
|                      |  |                   |        |  |      | 

F-64



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                            
|--- | ---------------------------
|19. | TRADE AND OTHER RECEIVABLES

|                                            |  |                   |        |   |      |  |        |  
|------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ------ | -
|                                            |  | 2004              |        |   | 2005 | 
|                                            |  |                   |        |   |      | 
|                                            |  | (NOK in millions) |       
|Accounts receivables                        |  |                   | 6,819  |   |      |  | 8,716  |  
|Provision for bad debt                      |  |                   | (715   | ) |      |  | (938   | )
|                                            |  |                   |        |   |      | 
|Total accounts receivables                  |  |                   | 6,104  |   |      |  | 7,778  |  
|                                            |  |                   |        |   |      | 
|Other current receivables                   |  |                   |        |   |      |  |        |  
|Interest-bearing                            |  |                   |        |   |      |  |        |  
|Receivables on associated companies         |  |                   | 232    |   |      |  | 124    |  
|Other receivables                           |  |                   | 20     |   |      |  | 35     |  
|Non-interest-bearing                        |  |                   |        |   |      |  |        |  
|Receivables on associated companies         |  |                   | 132    |   |      |  | 68     |  
|Receivables on employees                    |  |                   | 32     |   |      |  | 62     |  
|Other current receivables                   |  |                   | 639    |   |      |  | 803    |  
|Provision for bad debt                      |  |                   | (2     | ) |      |  | (2     | )
|                                            |  |                   |        |   |      | 
|Total other current receivables             |  |                   | 1,053  |   |      |  | 1,090  |  
|                                            |  |                   |        |   |      | 
|Prepaid expenses and accrued revenues       |  |                   |        |   |      |  |        |  
|Deferred costs for connection (1)           |  |                   | 1,612  |   |      |  | 1,639  |  
|Prepaid leases that are amortized(2)        |  |                   |       |   |      |  | 340    |  
|Prepaid expenses                            |  |                   | 662    |   |      |  | 819    |  
|Accrued revenues                            |  |                   | 2,056  |   |      |  | 2,186  |  
|                                            |  |                   |        |   |      | 
|Total prepaid expenses and accrued revenues |  |                   | 4,330  |   |      |  | 4,984  |  
|                                            |  |                   |        |   |      | 
|Total trade and other receivables           |  |                   | 11,487 |   |      |  | 13,852 |  
|                                            |  |                   |        |   |      | 






|    |                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Costs for connection limited to the deferred connection
    revenues, are deferred over the estimated customer relationship.
    Deferred costs for connection are classified as current as they
    relate to the Groups normal operating cycle.
|   
|(2) | For prepaid leases that are amortized. See note 15 for more
    information.                                                                                                                                                                      





F-65



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                       
|--- | ----------------------
|20. | OTHER FINANCIAL ASSETS

|                                                                          |  |                 |       |  |      |  |       | 
|------------------------------------------------------------------------- |  | --------------- | ----- |  | ---- |  | ----- | 
|                                                                          |  | 2004            |       |  | 2005 | 
|                                                                          |  |                 |       |  |      | 
|                                                                          |  | NOK in millions |      
|Available-for-sale investments  non-current(1)                           |  |                 | 739   |  |      |  | 490   | 
|Other financial non-current assets(3)                                     |  |                 | 510   |  |      |  | 1,777 | 
|Financial non-current assets                                              |  |                 | 1,249 |  |      |  | 2,267 | 
|Available-for-sale investments  current(1)(2)                            |  |                 | 527   |  |      |  | 1,852 | 
|Bonds and commercial paper                                                |  |                 | 317   |  |      |  | 385   | 
|                                                                          |  |                 |       |  |      | 
|Financial derivatives  non-interest-bearing current
    assets (note 23) |  |                 |      |  |      |  | 1,382 | 
|                                                                          |  |                 |       |  |      | 
|Other financial current assets                                            |  |                 | 844   |  |      |  | 3,619 | 
|                                                                          |  |                 |       |  |      | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The estimated fair values of these investments are based on
    quoted market prices where available, or valuation techniques.                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(2) | Inmarsat plc. is included in available-for sale 
    current with an estimated fair value of
    NOK 1,731 million as of December 31, 2005.
    Inmarsat Plc. became listed on the London Stock exchange during
    2005, and as of December 31, 2005, the value was based on
    the quoted stock price. At the time of implementation of IAS 32
    and 39 as of January 1, 2005, the value was set based on
    multiple analyses of comparable companies. Telenor recorded an
    increased value to equity both at January 2005 and at the time
    Inmarsat plc. became listed.
|   
|(3) | Other financial non-current assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

|                                                                                 |  |                 |     |   |      |  |       |  
|-------------------------------------------------------------------------------- |  | --------------- | --- | - | ---- |  | ----- | -
|                                                                                 |  | 2004            |     |   | 2005 | 
|                                                                                 |  |                 |     |   |      | 
|                                                                                 |  | NOK in millions |    
|Interest-bearing                                                                 |  |                 |     |   |      |  |       |  
|Receivables on associated companies(4)                                           |  |                 | 326 |   |      |  | 279   |  
|Loans to employees                                                               |  |                 | 10  |   |      |  | 5     |  
|Fair value hedge instruments  interest-bearing
    non-current assets (note 23) |  |                 |    |   |      |  | 998   |  
|Other non-current receivables(5)                                                 |  |                 | 16  |   |      |  | 103   |  
|Provision for bad debt                                                           |  |                 | (3  | ) |      |  | (4    | )
|Non-interest-bearing                                                             |  |                 |     |   |      |  |       |  
|Financial derivatives  non-interest-bearing
    non-currents assets (note 23)   |  |                 |    |   |      |  | 123   |  
|Receivables on associated companies                                              |  |                 | 5   |   |      |  | 5     |  
|Loans to employees                                                               |  |                 | 6   |   |      |  | 7     |  
|Other non-current receivables                                                    |  |                 | 150 |   |      |  | 267   |  
|Provision for bad debt                                                           |  |                 |    |   |      |  | (6    | )
|                                                                                 |  |                 |     |   |      | 
|Other financial non-current assets                                               |  |                 | 510 |   |      |  | 1,777 |  
|                                                                                 |  |                 |     |   |      | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(4) | In 2005 and 2004, interest-bearing receivables on associated
    companies were primarily Bravida ASA.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|   
|(5) | Other non-current interest bearing receivables as of
    December 31, 2005 consisted primarily of the net amount
    recognized on a receivable that DTAC had on Digital Phone
    Company Limited (DPC). DTAC has filed claims against DPC in the
    Thai Arbitration Court in June and August 2003 for the DPC
    breach of contract of more than NOK 241 million pursuant to
    the terms of an agreement to unwind the service provider
    agreement dated January 7, 1997. The receivable recognized
    is classified as interest-bearing, but no net interest income
    has been recognized as of December 31, 2005.

F-66



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                
|--- | ---------------
|21. | PROVISIONS ETC.

Non-current


|                                                                              |  |                   |       |      |  |  |       | 
|----------------------------------------------------------------------------- |  | ----------------- | ----- | ---- |  |  | ----- | 
|                                                                              |  | 2004              |       | 2005
|                                                                              |  |                   |       |     
|                                                                              |  | (NOK in millions)
|Provisions for pensions (Note 7)                                              |  |                   | 2,296 |      |  |  | 2,441 | 
|Provisions for workforce reduction and onerous (loss) contracts
    (Note 12) |  |                   | 230   |      |  |  | 149   | 
|Negative values associated companies (Note 18)                                |  |                   | 102   |      |  |  | 141   | 
|Asset retirement obligations                                                  |  |                   | 454   |      |  |  | 545   | 
|Other provisions                                                              |  |                   | 106   |      |  |  | 92    | 
|                                                                              |  |                   |       |      |  |  |       | 
|Total long term provisions                                                    |  |                   | 3,188 |      |  |  | 3,368 | 
|                                                                              |  |                   |       |      |  |  |       | 

Current


|                                                                              |  |                   |     |      |  |  |     | 
|----------------------------------------------------------------------------- |  | ----------------- | --- | ---- |  |  | --- | 
|                                                                              |  | 2004              |     | 2005
|                                                                              |  |                   |     |     
|                                                                              |  | (NOK in millions)
|Provisions for workforce reduction and onerous (loss) contracts
    (Note 12) |  |                   | 476 |      |  |  | 617 | 
|Asset retirement obligations                                                  |  |                   |    |      |  |  | 4   | 
|Other provisions                                                              |  |                   | 279 |      |  |  | 296 | 
|                                                                              |  |                   |     |      |  |  |     | 
|Total short term provisions                                                   |  |                   | 755 |      |  |  | 917 | 
|                                                                              |  |                   |     |      |  |  |     | 

Asset retirement obligations




|                                           |  |                 |     |      |  |  |     |  
|------------------------------------------ |  | --------------- | --- | ---- |  |  | --- | -
|                                           |  | 2004            |     | 2005
|                                           |  |                 |     |     
|                                           |  | NOK in millions
|Asset retirement obligation at January 1   |  |                 | 366 |      |  |  | 454 |  
|Liabilities incurred                       |  |                 | 28  |      |  |  | 67  |  
|Liabilities settled                        |  |                 |    |      |  |  | (12 | )
|Accretion expense                          |  |                 | 27  |      |  |  | 28  |  
|New subsidiaries                           |  |                 | 33  |      |  |  | 12  |  
|                                           |  |                 |     |      |  |  |     |  
|Asset retirement obligation at December 31 |  |                 | 454 |      |  |  | 549 |  
|                                           |  |                 |     |      |  |  |     |  



F-67



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                             
|--- | ----------------------------
|22. | INTEREST-BEARING LIABILITIES

|                                                                                     |  |               |           |                   |      |  |        |      |  |  |        | 
|------------------------------------------------------------------------------------ |  | ------------- | --------- | ----------------- | ---- |  | ------ | ---- |  |  | ------ | 
|                                                                                     |  | Limit         |           |                   | 2004 |  |        | 2005 | 
|                                                                                     |  |               |           |                   |      |  |        |      | 
|                                                                                     |  | (In millions) |           |                   |     
|                                                                                     |  |               |           | (NOK in millions) |     
|Euro Commercial paper program (ECP)                                                  |  |               | USD 500   |                   |      |  |       |      |  |  |       | 
|U.S. Commercial paper program (USCP)                                                 |  |               | USD 1,000 |                   |      |  |       |      |  |  |       | 
|Revolving credit facility EUR                                                        |  |               | EUR 1,500 |                   |      |  |       |      |  |  |       | 
|Revolving credit facility EUR                                                        |  |               | EUR 1,000 |                   |      |  |       |      |  |  |       | 
|EMTN program                                                                         |  |               | USD 6,000 |                   |      |  | 14,109 |      |  |  | 13,689 | 
|Norwegian Bonds                                                                      |  |               |           |                   |      |  | 2,064  |      |  |  | 2,045  | 
|Derivatives related to long term interest-bearing liabilities
    Telenor ASA(1)     |  |               |           |                   |      |  | (645   | )    |  |  |       | 
|Other long term interest bearing liabilities Telenor ASA                             |  |               |           |                   |      |  |       |      |  |  | 77     | 
|Total non-current interest-bearing liabilities Telenor ASA                           |  |               |           |                   |      |  | 15,528 |      |  |  | 15,811 | 
|Non-current interest-bearing liabilities in subsidiaries(2)                          |  |               |           |                   |      |  | 5,074  |      |  |  | 11,178 | 
|                                                                                     |  |               |           |                   |      |  |        |      | 
|Derivatives related to long term interest-bearing liabilities in
    subsidiaries(1) |  |               |           |                   |      |  |        |      |  |  | 150    | 
|Total non-current interest-bearing liabilities Telenor
    Group                     |  |               |           |                   |      |  | 20,602 |      |  |  | 27,139 | 
|Current interest-bearing liabilities Telenor ASA                                     |  |               |           |                   |      |  | 2,592  |      |  |  | 7,726  | 
|Derivatives related to short term interest-bearing liabilities
    Telenor ASA(1)    |  |               |           |                   |      |  | (14    | )    |  |  | 133    | 
|Current interest-bearing liabilities subsidiaries(2)                                 |  |               |           |                   |      |  | 1,413  |      |  |  | 4,049  | 
|                                                                                     |  |               |           |                   |      |  |        |      | 
|Total current interest-bearing liabilities Telenor Group                             |  |               |           |                   |      |  | 3,991  |      |  |  | 11,908 | 
|                                                                                     |  |               |           |                   |      |  |        |      | 
|Total interest-bearing liabilities Telenor Group                                     |  |               |           |                   |      |  | 24,593 |      |  |  | 39,047 | 
|                                                                                     |  |               |           |                   |      |  |        |      | 






|    |                                                                                                                                                                                                                                                                                                                                                     
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Foreign currency derivatives used to convert the cash flows of a
    debt instrument into another currency that fulfill requirements
    for fair value hedging. As from January 1, 2005 these
    derivatives are classified gross as interest-bearing financial
    assets (see note 20), or interest-bearing liabilities
    according to IAS 39.
|   
|(2) | Specified below.                                                                                                                                                                                                                                                                                                                                    

Non-current interest-bearing liabilities Telenor ASA






F-68



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                  |  |              |        |  |               |  |       |              |  |  |              |  |  |  |        | 
|----------------- |  | ------------ | ------ |  | ------------- |  | ----- | ------------ |  |  | ------------ |  |  |  | ------ | 
|                  |  | Amount in    |        |  | Average       |  |       | Amount in    |  |  | Amount in    | 
|                  |  | NOK          |        |  | interest rate |  |       | currency     |  |  | NOK          | 
|                  |  | December 31, |        |  | December 31,  |  |       | December 31, |  |  | December 31, | 
|                  |  | 2004         |        |  | 2005          |  |       | 2005         |  |  | 2005         | 
|                  |  |              |        |  |               |  |       |              |  |  |              | 
|EMTN program      |  |              |        |  |               |  |       |              |  |  |              |  |  |  |        | 
|AUD               |  |              | 174    |  |               |  |      |              |  |  |             |  |  |  |       | 
|CHF               |  |              | 801    |  |               |  | 4,38% |              |  |  | 160          |  |  |  | 824    | 
|EUR               |  |              | 9,873  |  |               |  | 5,11% |              |  |  | 1,525        |  |  |  | 12,175 | 
|JPY               |  |              | 1,148  |  |               |  | 1,58% |              |  |  | 12,000       |  |  |  | 690    | 
|USD               |  |              | 2,113  |  |               |  |      |              |  |  |             |  |  |  |       | 
|Norwegian Bonds   |  |              |        |  |               |  |       |              |  |  |              |  |  |  |        | 
|NOK               |  |              | 2,064  |  |               |  | 5,14% |              |  |  | 2,045        |  |  |  | 2,045  | 
|                  |  |              |        |  |               |  |       |              |  |  |              | 
|Total Telenor ASA |  |              | 16,173 |  |               |  |       |              |  |  |              |  |  |  | 15,734 | 
|                  |  |              |        |  |               |  |       |              |  |  |              | 



|                  |  |              |        |   |               |  |       |              |  |  |              |  |  |  |        |  
|----------------- |  | ------------ | ------ | - | ------------- |  | ----- | ------------ |  |  | ------------ |  |  |  | ------ | -
|                  |  | Amount in    |        |   | Average       |  |       | Amount in    |  |  | Amount in    | 
|                  |  | NOK          |        |   | interest rate |  |       | currency     |  |  | NOK          | 
|                  |  | December 31, |        |   | December 31,  |  |       | December 31, |  |  | December 31, | 
|                  |  | 2004         |        |   | 2005          |  |       | 2005         |  |  | 2005         | 
|                  |  |              |        |   |               |  |       |              |  |  |              | 
|Basis swaps       |  |              |        |   |               |  |       |              |  |  |              |  |  |  |        |  
|EUR/ NOK          |  |              | (93    | ) |               |  |      |              |  |  |             |  |  |  | (115   | )
|EMTN program      |  |              |        |   |               |  |       |              |  |  |              |  |  |  |        |  
|CZK               |  |              | 125    |   |               |  | 3,32% |              |  |  | 491          |  |  |  | 135    |  
|EUR               |  |              | 4,822  |   |               |  | 3,56% |              |  |  | 631          |  |  |  | 5,037  |  
|GBP               |  |              | 151    |   |               |  | 5,09% |              |  |  | 2            |  |  |  | 27     |  
|NOK               |  |              | 5,980  |   |               |  | 6,62% |              |  |  | 4,784        |  |  |  | 4,784  |  
|SEK               |  |              | 460    |   |               |  | 4,44% |              |  |  | 557          |  |  |  | 473    |  
|JPY               |  |              |       |   |               |  |       |              |  |  | 0,96%        |  |  |  |        |  
|USD               |  |              | 2,013  |   |               |  | 5,37% |              |  |  | 355          |  |  |  | 2,403  |  
|Norwegian Bonds   |  |              |        |   |               |  |       |              |  |  |              |  |  |  |        |  
|NOK               |  |              | 2,070  |   |               |  | 4,85% |              |  |  | 2,034        |  |  |  | 2,034  |  
|                  |  |              |        |   |               |  |       |              |  |  |              | 
|Total Telenor ASA |  |              | 15,528 |   |               |  |       |              |  |  |              |  |  |  | 14,753 |  
|                  |  |              |        |   |               |  |       |              |  |  |              | 

F-69



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Non-current interest-bearing liabilities in subsidiaries


|                                                                   |  |                                        |       |              |       |          |  |               |     |              |  |  |       |   |        |  |       | 
|------------------------------------------------------------------ |  | -------------------------------------- | ----- | ------------ | ----- | -------- |  | ------------- | --- | ------------ |  |  | ----- | - | ------ |  | ----- | 
|                                                                   |  |                                        |       |              |       |          |  | Average       |     |             
|                                                                   |  |                                        |       |              |       |          |  | interest rate |     |             
|                                                                   |  |                                        |       | December 31, |       |          |  | December 31,  |     | December 31,
|Company                                                            |  | Debt instrument                        |       | 2004         |       | Currency |  | 2005          |     | 2005        
|                                                                   |  |                                        |       |              |       |          |  |               |     |             
|                                                                   |  | (NOK in millions)                     
|DiGi.Com                                                           |  | Borrowings from financial institutions |       |              | 711   |          |  |               | MYR |              |  |  | 4,90  | % |        |  | 537   | 
|GrameenPhone                                                       |  | Borrowings from financial institutions |       |              | 111   |          |  |               | USD |              |  |  | 7,12  | % |        |  | 287   | 
|GrameenPhone                                                       |  | Borrowings from financial institutions |       |              | 18    |          |  |               | NOK |              |  |  | 2,51  | % |        |  | 16    | 
|GrameenPhone                                                       |  | Borrowings from NORAD                  |       |              | 39    |          |  |               | NOK |              |  |  | 3,40  | % |        |  | 32    | 
|GrameenPhone                                                       |  | Finance lease                          |       |              |      |          |  |               | BDT |              |  |  | 15,00 | % |        |  | 466   | 
|Kyivstar                                                           |  | Borrowings from financial institutions |       |              |      |          |  |               | USD |              |  |  | 6,91  | % |        |  | 508   | 
|Kyivstar                                                           |  | Bonds                                  |       |              | 1,510 |          |  |               | USD |              |  |  | 9,32  | % |        |  | 2,884 | 
|Sonofon                                                            |  | Finance lease                          |       |              | 196   |          |  |               | DKK |              |  |  | 6,31  | % |        |  | 187   | 
|Sonofonf                                                           |  | UMTS Licenses(3)                       |       |              |      |          |  |               | DKK |              |  |  | 3,67  | % |        |  | 323   | 
|Cybercity A/S                                                      |  | Finance lease                          |       |              |      |          |  |               | DKK |              |  |  | 2,44  | % |        |  | 16    | 
|Utfors konsernf                                                    |  | Finance lease                          |       |              |      |          |  |               | SEK |              |  |  |      |   |        |  | 11    | 
|Telenor Pakistan                                                   |  | GSM License(3)                         |       |              | 622   |          |  |               | USD |              |  |  | 4,56  | % |        |  | 700   | 
|Pannon                                                             |  | UMTS License(3)                        |       |              | 154   |          |  |               | HUF |              |  |  | 8,52  | % |        |  | 50    | 
|DTAC                                                               |  | Borrowings from financial institutions |       |              |      |          |  |               | USD |              |  |  | 7,85  | % |        |  | 596   | 
|DTAC                                                               |  | Borrowings from financial institutions |       |              |      |          |  |               | THB |              |  |  | 5,82  | % |        |  | 330   | 
|DTAC                                                               |  | Bonds                                  |       |              |      |          |  |               | THB |              |  |  | 7,14  | % |        |  | 2,202 | 
|UCOM                                                               |  | Borrowings from financial institutions |       |              |      |          |  |               | THB |              |  |  | 6,75  | % |        |  | 682   | 
|EDB Business Partner                                               |  | Borrowings from financial institutions |       |              | 440   |          |  |               | NOK |              |  |  | 2,96  | % |        |  | 250   | 
|EDB Business Partner                                               |  | Borrowings from financial institutions |       |              | 160   |          |  |               | SEK |              |  |  | 2,15  | % |        |  | 252   | 
|EDB Business Partner                                               |  | Finance lease                          |       |              | 55    |          |  |               | NOK |              |  |  | 4,60  | % |        |  | 40    | 
|Satellite Services AS                                              |  | Finance lease(1)                       |       |              | 763   |          |  |               | NOK |              |  |  | 1,70  | % |        |  | 815   | 
|Canal Digital                                                      |  | Finance lease(2)                       |       |              | 104   |          |  |               |    |              |  |  |      |   |        |  | 16    | 
|Miscellaneous                                                      |  |                                        |       |              | 191   |          |  |               |    |              |  |  |      |   |        |  | 128   | 
|                                                                   |  |                                        |       |              |       |          |  |               |     |              |  |  |       |   |        |  |       | 
|Total non-current interest-bearing liabilities in
    subsidiaries |  |                                        | 5,074 |              |       |          |  |               |     |              |  |  |       |   | 11,328 | 
|                                                                   |  |                                        |       |              |       |          |  |               |     |              |  |  |       |   |        | 






|    |                                                                                 
|--- | --------------------------------------------------------------------------------
|(1) | Satellite leases (Thor II and III). Telenor ASA
    guarantees this financing.  
|   
|(2) | Telenor ASA guarantees this financing. Denominated in DKK, EUR,
    NOK and SEK.
|   
|(3) | Net present value of future payments for mobile licenses.                       





F-70



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group






Current interest  bearing liabilities in Telenor
Group


|                                           |  |                                                 |  |                   |       |               |  |              |       |   |  |  |        | 
|------------------------------------------ |  | ----------------------------------------------- |  | ----------------- | ----- | ------------- |  | ------------ | ----- | - |  |  | ------ | 
|                                           |  |                                                 |  |                   |       | Average       |  |             
|                                           |  |                                                 |  |                   |       | interest rate |  |             
|                                           |  |                                                 |  | December 31,      |       | December 31,  |  | December 31,
|                                           |  |                                                 |  | 2004              |       | 2005          |  | 2005        
|                                           |  |                                                 |  |                   |       |               |  |             
|                                           |  |                                                 |  | (NOK in millions)
|Pannon                                     |  | UMTS Licenses                                   |  |                   | 251   |               |  |              | 8.52  | % |  |  | 95     | 
|DiGi.Com                                   |  | Vendor financing and term loans                 |  |                   | 346   |               |  |              |      |   |  |  |       | 
|Telenor Pakistan                           |  | GSM License                                     |  |                   | 88    |               |  |              |      |   |  |  |       | 
|Kyivstar                                   |  | Bonds and borrowing from financial institutions |  |                   | 271   |               |  |              |      |   |  |  |       | 
|GrameenPhone                               |  | Borrowings from financial institutions          |  |                   | 37    |               |  |              | 7.12  | % |  |  | 84     | 
|GrameenPhone                               |  | Borrowings from financial institutions          |  |                   | 4     |               |  |              | 2.51  | % |  |  | 4      | 
|GrameenPhone                               |  | Borrowings from NORAD                           |  |                   | 8     |               |  |              | 3.40  | % |  |  | 8      | 
|GrameenPhone                               |  | Finance lease                                   |  |                   |      |               |  |              | 15.00 | % |  |  | 19     | 
|Sonofon                                    |  | Finance lease                                   |  |                   |      |               |  |              | 6.29  | % |  |  | 3      | 
|Sonofon                                    |  | UMTS License                                    |  |                   |      |               |  |              | 3.67  | % |  |  | 30     | 
|Cybercity A/ S                             |  | Finance lease                                   |  |                   |      |               |  |              | 2.44  | % |  |  | 26     | 
|DTAC                                       |  | Bonds                                           |  |                   |      |               |  |              | 8.63  | % |  |  | 2,391  | 
|DTAC                                       |  | Borrowings from financial institutions          |  |                   |      |               |  |              | 4.82  | % |  |  | 931    | 
|UCOM                                       |  | Borrowings from financial institutions          |  |                   |      |               |  |              | 6.75  | % |  |  | 119    | 
|Business Solution                          |  | Finance lease                                   |  |                   | 14    |               |  |              |      |   |  |  |       | 
|Satellite Services AS                      |  | Finance lease(1)                                |  |                   | 125   |               |  |              | 1.70  | % |  |  | 137    | 
|EDB Business Partner                       |  | Finance lease                                   |  |                   | 28    |               |  |              | 4.61  | % |  |  | 16     | 
|Canal Digital                              |  | Finance lease(2)                                |  |                   | 164   |               |  |              |      |   |  |  | 96     | 
|Telenor ASA Bonds                          |  | Borrowings from financial institutions          |  |                   | 2,592 |               |  |              | 5.27  | % |  |  | 2,995  | 
|Telenor ASA CP                             |  | Borrowings from financial institutions          |  |                   |       |               |  |              | 2.56  | % |  |  | 4,731  | 
|Telenor ASA other                          |  | Borrowings from financial institutions          |  |                   | (14   | )             |  |              |      |   |  |  | 133    | 
|Miscellaneous                              |  |                                                 |  |                   | 77    |               |  |              |      |   |  |  | 90     | 
|                                           |  |                                                 |  |                   |       |               |  |              |       |   |  |  |        | 
|Total current interest-bearing liabilities |  |                                                 |  |                   | 3,991 |               |  |              |       |   |  |  | 11,908 | 
|                                           |  |                                                 |  |                   |       |               |  |              |       |   |  |  |        | 






|    |                                                                                 
|--- | --------------------------------------------------------------------------------
|(1) | Satellite leases (Thor II and III). Telenor ASA
    guarantees this financing   
|   
|(2) | Telenor ASA guarantees this financing. Denominated in DKK, EUR,
    NOK and SEK.

F-71



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Maturity profile of interest-bearing liabilities as of
December 31, 2005(1)


|                           |  |                   |        |       |  |       |        |       |  |       |       |       |  |       |       |       |  |       |       |       |  |  |       |  |  |  |       |  |  |  |       |  |  |  |     |  |  |  |     | 
|-------------------------- |  | ----------------- | ------ | ----- |  | ----- | ------ | ----- |  | ----- | ----- | ----- |  | ----- | ----- | ----- |  | ----- | ----- | ----- |  |  | ----- |  |  |  | ----- |  |  |  | ----- |  |  |  | --- |  |  |  | --- | 
|                           |  | Total as of       |        | 2006- |  | 2007- |        | 2008- |  | 2009- |       | 2010- |  | 2011- |       | 2012- |  | 2013- |       | After
|                           |  | 31.12.05          |        | 2007  |  | 2008  |        | 2009  |  | 2010  |       | 2011  |  | 2012  |       | 2013  |  | 2014  |       | 2014 
|                           |  |                   |        |       |  |       |        |       |  |       |       |       |  |       |       |       |  |       |       |      
|                           |  | (NOK in millions)
|EMTN program               |  |                   | 16,807 |       |  |       | 3,119  |       |  |       | 3,177 |       |  |       | 3,507 |       |  |       | 2,448 |       |  |  |      |  |  |  | 402   |  |  |  | 4,154 |  |  |  |    |  |  |  |    | 
|Domestic bonds             |  |                   | 2,046  |       |  |       |       |       |  |       | 1,848 |       |  |       |      |       |  |       |      |       |  |  |      |  |  |  |      |  |  |  |      |  |  |  | 198 |  |  |  |    | 
|ECP                        |  |                   | 431    |       |  |       | 431    |       |  |       |      |       |  |       |      |       |  |       |      |       |  |  |      |  |  |  |      |  |  |  |      |  |  |  |    |  |  |  |    | 
|Domestic commercial papers |  |                   | 4,300  |       |  |       | 4,300  |       |  |       |      |       |  |       |      |       |  |       |      |       |  |  |      |  |  |  |      |  |  |  |      |  |  |  |    |  |  |  |    | 
|Other short-term debt      |  |                   | 86     |       |  |       | 10     |       |  |       | 6     |       |  |       | 6     |       |  |       | 6     |       |  |  | 6     |  |  |  | 7     |  |  |  | 7     |  |  |  | 7   |  |  |  | 32  | 
|                           |  |                   |        |       |  |       |        |       |  |       |       |       |  |       |       |       |  |       |       |       |  |  |       |  |  |  |       |  |  |  |       |  |  |  |     |  |  |  |     | 
|Telenor ASA, total         |  |                   | 23,671 |       |  |       | 7,859  |       |  |       | 5,030 |       |  |       | 3,513 |       |  |       | 2,454 |       |  |  | 6     |  |  |  | 409   |  |  |  | 4,161 |  |  |  | 205 |  |  |  | 32  | 
|                           |  |                   |        |       |  |       |        |       |  |       |       |       |  |       |       |       |  |       |       |       |  |  |       |  |  |  |       |  |  |  |       |  |  |  |     |  |  |  |     | 
|Subsidiaries, short-term   |  |                   | 4,049  |       |  |       | 4,049  |       |  |       |      |       |  |       |      |       |  |       |      |       |  |  |      |  |  |  |      |  |  |  |      |  |  |  |    |  |  |  |    | 
|Subsidiaries, long-term    |  |                   | 11,328 |       |  |       |       |       |  |       | 950   |       |  |       | 1,952 |       |  |       | 3,778 |       |  |  | 1,526 |  |  |  | 608   |  |  |  | 1,403 |  |  |  | 221 |  |  |  | 891 | 
|                           |  |                   |        |       |  |       |        |       |  |       |       |       |  |       |       |       |  |       |       |       |  |  |       |  |  |  |       |  |  |  |       |  |  |  |     |  |  |  |     | 
|Subsidiaries, total        |  |                   | 15,377 |       |  |       | 4,049  |       |  |       | 950   |       |  |       | 1,952 |       |  |       | 3,778 |       |  |  | 1,526 |  |  |  | 608   |  |  |  | 1,403 |  |  |  | 221 |  |  |  | 891 | 
|                           |  |                   |        |       |  |       |        |       |  |       |       |       |  |       |       |       |  |       |       |       |  |  |       |  |  |  |       |  |  |  |       |  |  |  |     |  |  |  |     | 
|Telenor Group              |  |                   | 39,047 |       |  |       | 11,908 |       |  |       | 5,980 |       |  |       | 5,465 |       |  |       | 6,232 |       |  |  | 1,532 |  |  |  | 1,017 |  |  |  | 5,564 |  |  |  | 426 |  |  |  | 923 | 
|                           |  |                   |        |       |  |       |        |       |  |       |       |       |  |       |       |       |  |       |       |       |  |  |       |  |  |  |       |  |  |  |       |  |  |  |     |  |  |  |     | 






|    |                                                                                                                                                                                                                                                   
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Derivatives designated as hedging instruments in fair value
    hedges are classified as interest-bearing in the balance sheet.
    All other derivatives are classified as non-interest-bearing and
    are therefore not included in this table.



|    |                                          
|--- | -----------------------------------------
|23. | FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

Financial risk factors










Interest rate risk




F-72



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group










|                                |  |                                                                     |        |       |  |       |       |       |  |       |        |       |  |       |        |       |  |       |       |          |  |  |        |   |  |  |       |  |  |  |        |  |  |  |        |  |  |  |       | 
|------------------------------- |  | ------------------------------------------------------------------- | ------ | ----- |  | ----- | ----- | ----- |  | ----- | ------ | ----- |  | ----- | ------ | ----- |  | ----- | ----- | -------- |  |  | ------ | - |  |  | ----- |  |  |  | ------ |  |  |  | ------ |  |  |  | ----- | 
|                                |  | Decrease in fair value due to a 1%-point increase in interest rates
|                                |  |                                                                    
|                                |  |                                                                     |        | 0 - 1 |  | 1 - 2 |       | 2 - 3 |  | 3 - 4 |        | 4 - 5 |  | 5 - 6 |        | 6 - 7 |  | 7 - 8 |       | Beyond 8
|Currency                        |  | Face value                                                          |        | Year  |  | Years |       | Years |  | Years |        | Years |  | Years |        | Years |  | Years |       | Years   
|                                |  |                                                                     |        |       |  |       |       |       |  |       |        |       |  |       |        |       |  |       |       |         
|                                |  | (NOK in millions equivalent as of December 31, 2005)               
|CZK                             |  |                                                                     | 170    |       |  |       | 0.44  |       |  |       |       |       |  |       |       |       |  |       |      |          |  |  |       |   |  |  |      |  |  |  |       |  |  |  |       |  |  |  |      | 
|DKK                             |  |                                                                     | (145   | )     |  |       | 0.24  |       |  |       | 4.53   |       |  |       |       |       |  |       |      |          |  |  |       |   |  |  |      |  |  |  |       |  |  |  |       |  |  |  | 28.83 | 
|BDT                             |  |                                                                     | 516    |       |  |       |      |       |  |       | (5.72  | )     |  |       |       |       |  |       |      |          |  |  |       |   |  |  |      |  |  |  |       |  |  |  |       |  |  |  |      | 
|EUR                             |  |                                                                     | 10,535 |       |  |       | 14.26 |       |  |       | 13.70  |       |  |       | 0.80   |       |  |       | 1.81  |          |  |  | 2.67   |   |  |  | 3.25  |  |  |  | 3.59   |  |  |  | 101.67 |  |  |  |      | 
|GBP                             |  |                                                                     |       |       |  |       | 0.02  |       |  |       |       |       |  |       |       |       |  |       |      |          |  |  |       |   |  |  |      |  |  |  |       |  |  |  |       |  |  |  |      | 
|HUF                             |  |                                                                     | (1,489 | )     |  |       | (1.03 | )     |  |       | 1.43   |       |  |       |       |       |  |       |      |          |  |  |       |   |  |  |      |  |  |  |       |  |  |  |       |  |  |  |      | 
|MYR                             |  |                                                                     | 573    |       |  |       |      |       |  |       |       |       |  |       |       |       |  |       |      |          |  |  |       |   |  |  | 30.12 |  |  |  |       |  |  |  |       |  |  |  |      | 
|NOK                             |  |                                                                     | 11,955 |       |  |       | 19.46 |       |  |       | 40.99  |       |  |       | 4.86   |       |  |       | 15.29 |          |  |  | 2.66   |   |  |  |      |  |  |  | 88.46  |  |  |  | 15.26  |  |  |  |      | 
|SEK                             |  |                                                                     | 502    |       |  |       | 1.01  |       |  |       | 0.50   |       |  |       |       |       |  |       | 5.23  |          |  |  |       |   |  |  |      |  |  |  |       |  |  |  |       |  |  |  |      | 
|THB                             |  |                                                                     | 6,575  |       |  |       | 6.86  |       |  |       | 16.90  |       |  |       | (28.80 | )     |  |       | 27.12 |          |  |  | (22.51 | ) |  |  | 26.97 |  |  |  |       |  |  |  |       |  |  |  |      | 
|USD                             |  |                                                                     | 10,010 |       |  |       | (9.70 | )     |  |       | 72.51  |       |  |       | 5.87   |       |  |       | 3.11  |          |  |  |       |   |  |  |      |  |  |  | 71.54  |  |  |  | 23.92  |  |  |  |      | 
|                                |  |                                                                     |        |       |  |       |       |       |  |       |        |       |  |       |        |       |  |       |       |          |  |  |        |   |  |  |       |  |  |  |        |  |  |  |        |  |  |  |       | 
|Interest-bearing liabilities(1) |  |                                                                     | 39,202 |       |  |       | 31.12 |       |  |       | 144.84 |       |  |       | (17.27 | )     |  |       | 52.56 |          |  |  | (17.18 | ) |  |  | 60.34 |  |  |  | 163.59 |  |  |  | 140.85 |  |  |  | 28.83 | 
|                                |  |                                                                     |        |       |  |       |       |       |  |       |        |       |  |       |        |       |  |       |       |          |  |  |        |   |  |  |       |  |  |  |        |  |  |  |        |  |  |  |       | 






|    |                                                                                                                                                                                                                       
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The figure differs from note 22 due to the inclusion of
    derivatives not classified as interest-bearing liabilities (i.e.
    derivatives that are not accounted for as hedge of
    interest-bearing liabilities).

Exchange rate risk






F-73



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group












|                             |  |     |     |     |  |     |        |     |  |     |      |     |  |     |      |     |  |     |      |     |  |     |        |     |  |     |     |   |  |  |        |   |  |  |         |   |  |  |       |   |  |  |        |   |  |  |         |   |  |  |        |  
|---------------------------- |  | --- | --- | --- |  | --- | ------ | --- |  | --- | ---- | --- |  | --- | ---- | --- |  | --- | ---- | --- |  | --- | ------ | --- |  | --- | --- | - |  |  | ------ | - |  |  | ------- | - |  |  | ----- | - |  |  | ------ | - |  |  | ------- | - |  |  | ------ | -
|                             |  | AUD |     | BDT |  | CHF |        | CZK |  | DKK |      | EUR |  | GBP |      | HUF |  | JPY |      | MYR |  | SEK |        | THB |  | USD
|                             |  |     |     |     |  |     |        |     |  |     |      |     |  |     |      |     |  |     |      |     |  |     |        |     |  |    
|Interest-bearing assets      |  |     |    |     |  |     |       |     |  |     |     |     |  |     |     |     |  |     |     |     |  |     |       |     |  |     |    |   |  |  | 3,885  |   |  |  |        |   |  |  | 1,246 |   |  |  |       |   |  |  | 1,165   |   |  |  | 256    |  
|Interest-bearing liabilities |  |     | (37 | )   |  |     | (4,830 | )   |  |     | (150 | )   |  |     |     |     |  |     | (573 | )   |  |     | (1,554 | )   |  |     | (12 | ) |  |  | (3,030 | ) |  |  | (19,500 | ) |  |  | (316  | ) |  |  | (422   | ) |  |  | (28,734 | ) |  |  | (1,567 | )
|Currency swaps               |  |     | 37  |     |  |     |       |     |  |     | 150  |     |  |     | (460 | )   |  |     |     |     |  |     | 613    |     |  |     |    |   |  |  |       |   |  |  | 19,500  |   |  |  |      |   |  |  | (503   | ) |  |  | (107    | ) |  |  | 17     |  
|Forward contracts            |  |     |    |     |  |     |       |     |  |     |     |     |  |     | (307 | )   |  |     |     |     |  |     | (338   | )   |  |     |    |   |  |  | 51,750 |   |  |  |        |   |  |  |      |   |  |  | (230   | ) |  |  | 3       |   |  |  | (232   | )
|                             |  |     |     |     |  |     |        |     |  |     |      |     |  |     |      |     |  |     |      |     |  |     |        |     |  |     |     |   |  |  |        |   |  |  |         |   |  |  |       |   |  |  |        |   |  |  |         |   |  |  |        |  
|Total                        |  |     |    |     |  |     | (4,830 | )   |  |     |     |     |  |     | (767 | )   |  |     | (573 | )   |  |     | (1,279 | )   |  |     | (12 | ) |  |  | 52,605 |   |  |  |        |   |  |  | 930   |   |  |  | (1,155 | ) |  |  | (27,673 | ) |  |  | (1,526 | )
|                             |  |     |     |     |  |     |        |     |  |     |      |     |  |     |      |     |  |     |      |     |  |     |        |     |  |     |     |   |  |  |        |   |  |  |         |   |  |  |       |   |  |  |        |   |  |  |         |   |  |  |        |  

Credit risk












F-74



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group






Fair values of financial instruments












F-75



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                                    |  |            |         |            |  |            |         |            |  |  |         |   |  |  |         |  
|------------------------------------------------------------------- |  | ---------- | ------- | ---------- |  | ---------- | ------- | ---------- |  |  | ------- | - |  |  | ------- | -
|                                                                    |  | Book value |         | Book value |  | Fair value |         | Fair value
|                                                                    |  | 2004       |         | 2005       |  | 2004       |         | 2005      
|                                                                    |  |            |         |            |  |            |         |           
|Financial Assets                                                    |  |            |         |            |  |            |         |            |  |  |         |   |  |  |         |  
|Listed shares owned less than 20 percent                            |  |            | 82      |            |  |            | 1,866   |            |  |  | 97      |   |  |  | 1,866   |  
|Cash and short term money market investments                        |  |            | 5,398   |            |  |            | 7,191   |            |  |  | 5,398   |   |  |  | 7,191   |  
|Financial Liabilities                                               |  |            |         |            |  |            |         |            |  |  |         |   |  |  |         |  
|Non current interest bearing liabilities                            |  |            | (21,247 | )          |  |            | (26,989 | )          |  |  | (22,528 | ) |  |  | (27,771 | )
|Current interest liabilities                                        |  |            | (4,005  | )          |  |            | (11,775 | )          |  |  | (4,050  | ) |  |  | (11,775 | )
|Derivatives used for interest and exchange rate risk
    management |  |            |         |            |  |            |         |            |  |  |         |   |  |  |         |  
|Gain interest rate swaps                                            |  |            | 7       |            |  |            | 553     |            |  |  | 437     |   |  |  | 553     |  
|Loss interest rate swaps                                            |  |            |        |            |  |            | (725    | )          |  |  | (432    | ) |  |  | (725    | )
|Gain cross currency interest rate swaps                             |  |            | 54      |            |  |            | 1,672   |            |  |  | 28      |   |  |  | 1,672   |  
|Loss cross currency interest rate swaps                             |  |            | (7      | )          |  |            | (860    | )          |  |  | (7      | ) |  |  | (860    | )
|Gain foreign currency forward contracts                             |  |            | 1,731   |            |  |            | 165     |            |  |  | 2,023   |   |  |  | 165     |  
|Loss foreign currency forward contracts                             |  |            | (1,072  | )          |  |            | (447    | )          |  |  | (1,124  | ) |  |  | (447    | )
|Interest rate options assets                                        |  |            | 122     |            |  |            | 18      |            |  |  | 122     |   |  |  | 18      |  
|Interest rate options liability                                     |  |            | (54     | )          |  |            | (16     | )          |  |  | (54     | ) |  |  | (16     | )
|Total net derivatives                                               |  |            | 781     |            |  |            | 360     |            |  |  | 993     |   |  |  | 360     |  

|                                                                               |  |            |        |  
|------------------------------------------------------------------------------ |  | ---------- | ------ | -
|                                                                               |  | Book value |       
|                                                                               |  | 2005       |       
|                                                                               |  |            |       
|Classification of derivatives in the balance sheet(1)(2)                       |  |            |        |  
|Financial derivatives  non-interest-bearing
    non-current assets(3)         |  |            | 123    |  
|Fair value hedge instruments  interest-bearing
    non-current assets(3)      |  |            | 998    |  
|Financial derivatives  non-interest-bearing currents
    assets(4)            |  |            | 1,382  |  
|Fair value hedge instruments  non-current
    interest-bearing liabilities(5) |  |            | (150   | )
|Financial derivatives  non-current
    non-interest-bearing liabilities(6)    |  |            | (138   | )
|Fair value hedge instruments  current
    interest-bearing liabilities(7)     |  |            | (133   | )
|Financial derivatives  current non-interest-bearing
    liabilities(8)        |  |            | (1,722 | )
|                                                                               |  |            |       
|Total net derivatives                                                          |  |            | 360    |  
|                                                                               |  |            |       






|    |                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Derivatives designated as hedging instruments in fair value
    hedges are classified as interest-bearing in the balance sheet.
    All other derivatives are classified as non-interest-bearing.
|   
|(2) | Comparable numbers as of December 31, 2004 are not
    applicable since IAS 39 was implemented as of January 1, 2005.                                                                            
|   
|(3) | Included in Financial non-current assets in the balance sheet
    (note 20)                                                                                                                      
|   
|(4) | Included in Other financial current assets in the balance sheet
    (note 20)                                                                                                                    
|   
|(5) | Included in Non-current interest-bearing financial liabilities
    in the balance sheet (note 22)                                                                                                
|   
|(6) | Included in Non-current non-interest-bearing financial
    liabilities in the balance sheet                                                                                                      
|   
|(7) | Included in Current interest-bearing financial liabilities in
    the balance sheet (note 20)                                                                                                    

F-76



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                                                                                                  
|--- | -------------------------------------------------------------------------------------------------
|(8) | Included in Current non-interest bearing financial liabilities
    in the balance sheet (note 24)

Hedging activities




Derivative instruments designated as fair value hedging
instruments








|                                                                        |  |                 |      |  
|----------------------------------------------------------------------- |  | --------------- | ---- | -
|                                                                        |  | NOK in millions |     
|                                                                        |  |                 |     
|Fair value hedging relationships                                        |  |                 |      |  
|Net loss recognized in 2005 income statement on hedged items:           |  |                 | (676 | )
|Net gain recognized in 2005 income statement on hedging
    instruments |  |                 | 686  |  
|Amount of hedge ineffectiveness                                         |  |                 | 10   |  



Derivative instruments designated as cash flow hedging
instruments










F-77



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Derivative (and nonderivative) instruments designated as
hedging instruments of a net investment in a foreign
operation




Derivatives not designated as hedging instruments








|    |                                                                                    
|--- | -----------------------------------------------------------------------------------
|24. | TRADE AND OTHER PAYABLES AND CURRENT NON-INTEREST BEARING
    FINANCIAL LIABILITIES

|                                          |  |                   |        |      |  |  |        | 
|----------------------------------------- |  | ----------------- | ------ | ---- |  |  | ------ | 
|                                          |  | 2004              |        | 2005
|                                          |  |                   |        |     
|                                          |  | (NOK in millions)
|Trade and other payables                  |  |                   |        |      |  |  |        | 
|Accounts payable                          |  |                   | 3,806  |      |  |  | 6,215  | 
|Government taxes, tax deductions etc.     |  |                   | 2,071  |      |  |  | 2,286  | 
|Accrued expenses                          |  |                   | 4,342  |      |  |  | 6,181  | 
|Deferred connection revenues(1)           |  |                   | 1,692  |      |  |  | 1,741  | 
|Prepaid revenues                          |  |                   | 3,264  |      |  |  | 4,404  | 
|                                          |  |                   |        |      |  |  |        | 
|Total trade and other current liabilities |  |                   | 15,175 |      |  |  | 20,827 | 
|                                          |  |                   |        |      |  |  |        | 






|    |                                                                                                                                                                                                    
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Connection revenues are deferred over the estimated customer
    relationship. Deferred connection revenues are classified as
    current as they relate to the Groups normal operating
    cycle.

|                                                         |  |                   |     |      |  |  |       | 
|-------------------------------------------------------- |  | ----------------- | --- | ---- |  |  | ----- | 
|                                                         |  | 2004              |     | 2005
|                                                         |  |                   |     |     
|                                                         |  | (NOK in millions)
|Current non-interest bearing financial liabilities       |  |                   |     |      |  |  |       | 
|Financial derivatives (see note 23)                      |  |                   |    |      |  |  | 1,722 | 
|Other current non-interest bearing financial liabilities |  |                   | 431 |      |  |  | 592   | 
|                                                         |  |                   |     |      |  |  |       | 
|Total current non-interest bearing financial liabilities |  |                   | 431 |      |  |  | 2,314 | 
|                                                         |  |                   |     |      |  |  |       | 

F-78



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                   
|--- | ------------------
|25. | EARNINGS PER SHARE

From total operations




|                                                                                                                                    |  |                   |       |      |  |  |       | 
|----------------------------------------------------------------------------------------------------------------------------------- |  | ----------------- | ----- | ---- |  |  | ----- | 
|                                                                                                                                    |  | 2004              |       | 2005
|                                                                                                                                    |  |                   |       |     
|                                                                                                                                    |  | (NOK in millions)
|Earnings                                                                                                                            |  |                   |       |      |  |  |       | 
|Net income for the purposes of basic earnings per share (profit
    for the year attributable to the equity holders of Telenor ASA) |  |                   | 6,093 |      |  |  | 7,646 | 
|Effect of dilutive potential ordinary shares                                                                                        |  |                   |      |      |  |  |      | 
|                                                                                                                                    |  |                   |       |      |  |  |       | 
|Earnings for the purposes of diluted earnings per share                                                                             |  |                   | 6,093 |      |  |  | 7,646 | 
|                                                                                                                                    |  |                   |       |      |  |  |       | 

|                                                                                              |  |                |           |      |  |  |           | 
|--------------------------------------------------------------------------------------------- |  | -------------- | --------- | ---- |  |  | --------- | 
|                                                                                              |  | 2004           |           | 2005
|                                                                                              |  |                |           |     
|                                                                                              |  | (In thousands)
|Number of shares                                                                              |  |                |           |      |  |  |           | 
|Weighted average number of ordinary shares for the purposes of
    basic earnings per share   |  |                | 1,747,865 |      |  |  | 1,710,502 | 
|Effect of dilutive potential ordinary shares:                                                 |  |                |           |      |  |  |           | 
|Share options                                                                                 |  |                | 1,462     |      |  |  | 1,340     | 
|                                                                                              |  |                |           |      |  |  |           | 
|Weighted average number of ordinary shares for the purposes of
    diluted earnings per share |  |                | 1,749,327 |      |  |  | 1,711,842 | 
|                                                                                              |  |                |           |      |  |  |           | 



From continuing operations




|                                                                                         |  |                   |       |      |  |  |       |  
|---------------------------------------------------------------------------------------- |  | ----------------- | ----- | ---- |  |  | ----- | -
|                                                                                         |  | 2004              |       | 2005
|                                                                                         |  |                   |       |     
|                                                                                         |  | (NOK in millions)
|Earnings                                                                                 |  |                   |       |      |  |  |       |  
|Profit for the year attributable to the equity holders of
    Telenor ASA                |  |                   | 6,093 |      |  |  | 7,646 |  
|Less:                                                                                    |  |                   |       |      |  |  |       |  
|Profit for the year from discontinued operations                                         |  |                   |      |      |  |  | (4    | )
|                                                                                         |  |                   |       |      |  |  |       |  
|Net income for the purposes of basic earnings per share from
    continuing operations   |  |                   | 6,093 |      |  |  | 7,650 |  
|Effect of dilutive potential ordinary shares                                             |  |                   |      |      |  |  |      |  
|                                                                                         |  |                   |       |      |  |  |       |  
|Net income for the purposes of diluted earnings per share from
    continuing operations |  |                   | 6,093 |      |  |  | 7,650 |  
|                                                                                         |  |                   |       |      |  |  |       |  



F-79



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                              
|--- | -----------------------------
|26. | COMMITMENTS AND CONTINGENCIES



Sonofon Holding A/S




Telenor Mobil Norway


th th


GrameenPhone




Kyivstar




F-80



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




Disputes mentioned in note 24 to the Telenors
financial statements for 2004, in which a final decision or
verdict has been reached.






|    |                        
|--- | -----------------------
|27. | CONTRACTUAL OBLIGATIONS



|                                                                 |  |                   |       |      |  |      |       |      |  |      |       |       |  |  |     |  |  |  |     |  |  |  |       | 
|---------------------------------------------------------------- |  | ----------------- | ----- | ---- |  | ---- | ----- | ---- |  | ---- | ----- | ----- |  |  | --- |  |  |  | --- |  |  |  | ----- | 
|                                                                 |  |                   |       |      |  |      |       |      |  |      |       | After
|                                                                 |  | 2006              |       | 2007 |  | 2008 |       | 2009 |  | 2010 |       | 2010 
|                                                                 |  |                   |       |      |  |      |       |      |  |      |       |      
|                                                                 |  | (NOK in millions)
|Minimum lease payments under non-cancelable operating
    leases |  |                   |       |      |  |      |       |      |  |      |       |       |  |  |     |  |  |  |     |  |  |  |       | 
|Lease of premises                                                |  |                   | 858   |      |  |      | 729   |      |  |      | 627   |       |  |  | 557 |  |  |  | 482 |  |  |  | 2,409 | 
|Lease of cars, office equipment, etc.                            |  |                   | 70    |      |  |      | 42    |      |  |      | 22    |       |  |  | 7   |  |  |  | 3   |  |  |  | 1     | 
|Lease of satellite- and net-capacity                             |  |                   | 435   |      |  |      | 263   |      |  |      | 195   |       |  |  | 113 |  |  |  | 65  |  |  |  | 114   | 
|Contractual purchase obligations                                 |  |                   |       |      |  |      |       |      |  |      |       |       |  |  |     |  |  |  |     |  |  |  |       | 
|Purchase of satellite- and net-capacity                          |  |                   | 803   |      |  |      | 47    |      |  |      | 28    |       |  |  | 10  |  |  |  | 8   |  |  |  | 8     | 
|IT-related agreements                                            |  |                   | 407   |      |  |      | 165   |      |  |      | 140   |       |  |  | 131 |  |  |  | 31  |  |  |  | 13    | 
|Other contractual obligations                                    |  |                   | 599   |      |  |      | 370   |      |  |      | 211   |       |  |  | 101 |  |  |  | 45  |  |  |  | 30    | 
|Committed investments                                            |  |                   |       |      |  |      |       |      |  |      |       |       |  |  |     |  |  |  |     |  |  |  |       | 
|Property plant and equipment                                     |  |                   | 1,447 |      |  |      | 9     |      |  |      |      |       |  |  |    |  |  |  |    |  |  |  |      | 
|Other contractual investments                                    |  |                   | 722   |      |  |      | 148   |      |  |      | 18    |       |  |  |    |  |  |  |    |  |  |  |      | 
|Total contractual obligations                                    |  |                   | 5,340 |      |  |      | 1,773 |      |  |      | 1,241 |       |  |  | 919 |  |  |  | 634 |  |  |  | 2,574 | 



F-81



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group










|    |                
|--- | ---------------
|28. | RELATED PARTIES











F-82



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group






|         |     |                |  |          |       |                |  |  |     |  |  |  |     | 
|-------- | --- | -------------- |  | -------- | ----- | -------------- |  |  | --- |  |  |  | --- | 
|2004     |     | 2005          
|         |     |               
|Sales to |     | Purchases from |  | Sales to |       | Purchases from
|         |     |                |  |          |       |               
|         | 703 |                |  |          | 1,323 |                |  |  | 544 |  |  |  | 177 | 













F-83



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                                       
|--- | --------------------------------------
|29. | ADDITIONAL INFORMATION ABOUT CASH FLOW

Purchase and sale of subsidiaries and associated companies




|                                                                                             |  |                   |        |   |      |  |         |  
|-------------------------------------------------------------------------------------------- |  | ----------------- | ------ | - | ---- |  | ------- | -
|                                                                                             |  | 2004              |        |   | 2005 | 
|                                                                                             |  |                   |        |   |      | 
|                                                                                             |  | (NOK in millions) |       
|Purchase of subsidiaries and associated companies                                            |  |                   |        |   |      |  |         |  
|Associated companies                                                                         |  |                   | 112    |   |      |  | 235     |  
|Total other fixed assets                                                                     |  |                   | 13,773 |   |      |  | 20,399  |  
|Total current assets                                                                         |  |                   | 1,353  |   |      |  | 3,175   |  
|Total liabilities                                                                            |  |                   | (5,883 | ) |      |  | (11,533 | )
|Minority interests                                                                           |  |                   |       |   |      |  | (1,292  | )
|Book value of associated companies at the time of acquisition                                |  |                   | (4,215 | ) |      |  | (941    | )
|Recorded directly to equity                                                                  |  |                   |       |   |      |  | (1,274  | )
|Purchase price                                                                               |  |                   | 5,140  |   |      |  | 8,769   |  
|Of which cash paid(1)                                                                        |  |                   | (6,421 | ) |      |  | (8,594  | )
|Cash in subsidiaries purchased                                                               |  |                   | 140    |   |      |  | 466     |  
|                                                                                             |  |                   |        |   |      | 
|Cash payment on purchase of subsidiaries and associated
    companies, net of cash purchased |  |                   | (6,281 | ) |      |  | (8,128  | )
|                                                                                             |  |                   |        |   |      | 
|Sale of subsidiaries and associated companies                                                |  |                   |        |   |      |  |         |  
|Associated companies                                                                         |  |                   | 98     |   |      |  | 29      |  
|Total other fixed assets                                                                     |  |                   | 124    |   |      |  | 599     |  
|Total current assets                                                                         |  |                   | 553    |   |      |  | 95      |  
|Total liabilities                                                                            |  |                   | (217   | ) |      |  | (97     | )
|Minority interests                                                                           |  |                   | (28    | ) |      |  | 76      |  
|Gain (loss) and translation adjustments of sales                                             |  |                   | 502    |   |      |  | 39      |  
|Sales price                                                                                  |  |                   | 1,032  |   |      |  | 741     |  
|Of which cash received                                                                       |  |                   | 953    |   |      |  | 821     |  
|Cash in subsidiaries sold                                                                    |  |                   | (104   | ) |      |  | (81     | )
|                                                                                             |  |                   |        |   |      | 
|Cash received on sale of subsidiaries and associated companies,
    net of cash sold         |  |                   | 849    |   |      |  | 740     |  
|                                                                                             |  |                   |        |   |      | 

F-84



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group







|    |                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In 2004, cash payments include a shareholders loan that
    Telenor took over at the time of purchase of the remaining
    shares in Sonofon Holding A/ S.

|                             |  |           |    |      |  |  |    | 
|---------------------------- |  | --------- | -- | ---- |  |  | -- | 
|                             |  | 2004      |    | 2005
|                             |  |           |    |     
|                             |  | (NOK in  
|                             |  | millions)
|Restricted bank accounts     |  |           |    |      |  |  |    | 
|For employees tax deduction |  |           | 6  |      |  |  | 7  | 
|Other                        |  |           | 17 |      |  |  | 19 | 
|                             |  |           |    |      |  |  |    | 
|Total                        |  |           | 23 |      |  |  | 26 | 
|                             |  |           |    |      |  |  |    | 



Cash and cash equivalents


|                                                                      |  |                   |       |      |  |  |       | 
|--------------------------------------------------------------------- |  | ----------------- | ----- | ---- |  |  | ----- | 
|                                                                      |  | 2004              |       | 2005
|                                                                      |  |                   |       |     
|                                                                      |  | (NOK in millions)
|Cash and cash equivalents in the Groups cash pool systems            |  |                   | 3,028 |      |  |  | 1,705 | 
|Cash and cash equivalents not in the Groups cash pool
    systems(1) |  |                   | 2,053 |      |  |  | 5,101 | 
|Total cash and cash equivalents                                       |  |                   | 5,081 |      |  |  | 6,806 | 








|    |                                                                                                                                                                                                                                                                                 
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Subsidiaries in which Telenor owns less than 90 percent of
    the shares are normally not participating in the Groups
    cash pool systems, held by Telenor ASA. As of December 31,
    2005, these cash and cash equivalents primarily related to
    Kyivstar and DiGi.Com.

Significant non-monetary transactions


|                                                                      |  |                   |       |      |  |  |     | 
|--------------------------------------------------------------------- |  | ----------------- | ----- | ---- |  |  | --- | 
|                                                                      |  | 2004              |       | 2005
|                                                                      |  |                   |       |     
|                                                                      |  | (NOK in millions)
|Investments in licenses  part not paid in the year of
    grant      |  |                   | 1,091 |      |  |  | 461 | 
|Finance leases  part not paid in the year of initial
    recognition |  |                   |      |      |  |  | 484 | 
|                                                                      |  |                   |       |      |  |  |     | 
|Total                                                                 |  |                   | 1,091 |      |  |  | 945 | 
|                                                                      |  |                   |       |      |  |  |     | 





|    |                             
|--- | ----------------------------
|30. | MANAGEMENT COMPENSATION ETC.



F-85



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                              |  |             |           |             |             |  |             |      |  |       |             |       |         |        |         |                |            |  |           |  |  |  |           | 
|----------------------------- |  | ----------- | --------- | ----------- | ----------- |  | ----------- | ---- |  | ----- | ----------- | ----- | ------- | ------ | ------- | -------------- | ---------- |  | --------- |  |  |  | --------- | 
|                              |  |             |           | Share       |             |  |             |      |  |       |             |       |        
|                              |  |             |           | options     |             |  |             |      |  |       |             |       |        
|                              |  |             |           | reported as |             |  |             |      |  |       |             |       | Pension |       
|                              |  |             |           | taxable     |             |  | Bonuses     |      |  |       |             | Total |         |        | benefit |               
|                              |  |             |           | income in   |             |  | paid in the |      |  | Other |             |       | taxable |        |         | earned/cost to |           
|                              |  | Base salary |           |             | the year(1) |  |             | Year |  |       | benefits(2) |       |         | income |         |                | company(3) | 
|                              |  |             |           |             |             |  |             |      |  |       |             |       |         |        |         |                |            | 
|Group Executive Management(4) |  |             |           |             |             |  |             |      |  |       |             |       |         |        |         |                |            |  |           |  |  |  |           | 
|Jon Fredrik Baksaas           |  |             | 4,000,000 |             |             |  |            |      |  |       | 1,039,333   |       |         |        | 130,171 |                |            |  | 5,169,504 |  |  |  | 1,309,000 | 
|Arve Johansen                 |  |             | 2,800,000 |             |             |  |            |      |  |       | 911,408     |       |         |        | 386,595 |                |            |  | 4,098,003 |  |  |  | 1,724,000 | 
|Morten Karlsen Sørby          |  |             | 2,600,000 |             |             |  |            |      |  |       | 583,738     |       |         |        | 172,871 |                |            |  | 3,356,609 |  |  |  | 460,000   | 
|Jan Edvard Thygesen           |  |             | 2,000,000 |             |             |  |            |      |  |       | 449,653     |       |         |        | 255,359 |                |            |  | 2,705,012 |  |  |  | 1,240,000 | 
|Stig Eide Sivertsen           |  |             | 2,000,000 |             |             |  |            |      |  |       | 601,846     |       |         |        | 247,282 |                |            |  | 2,849,128 |  |  |  | 990,000   | 
|Trond Ø. Westlie(5)           |  |             | 670,833   |             |             |  |            |      |  |       |            |       |         |        | 40,426  |                |            |  | 711,260   |  |  |  | 116,000   | 
|Torstein Moland(5)            |  |             | 1,558,333 |             |             |  |            |      |  |       | 542,570     |       |         |        | 293,217 |                |            |  | 2,394,120 |  |  |  | 992,000   | 

|                      |  |                    |         |              |             |  |        | 
|--------------------- |  | ------------------ | ------- | ------------ | ----------- |  | ------ | 
|                      |  |                    |         | Compensation |            
|                      |  |                    |         | for board    |            
|                      |  |                    |         | elected      |            
|                      |  | Board compensation |         |              | committees | 
|                      |  |                    |         |              |             | 
|Board of Directors(6) |  |                    |         |              |             |  |        | 
|Thorleif Enger        |  |                    | 400,000 |              |             |  | 5,000  | 
|Bjørg Ven             |  |                    | 270,000 |              |             |  | 20,000 | 
|Harald Stavn          |  |                    | 200,000 |              |             |  | 10,000 | 
|Per Gunnar Salomonsen |  |                    | 200,000 |              |             |  |       | 
|Irma Tystad           |  |                    | 200,000 |              |             |  | 10,000 | 
|John Giverholt        |  |                    | 200,000 |              |             |  | 80,000 | 
|Hanne de Mora         |  |                    | 200,000 |              |             |  | 80,000 | 
|Liselott Kilaas       |  |                    | 200,000 |              |             |  | 5,000  | 
|Paul Bergqvist        |  |                    | 146,027 |              |             |  | 5,000  | 
|Jørgen Lindegaard     |  |                    | 200,000 |              |             |  |       | 











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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


paid-up
















F-87



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                   |  |               |          |  |           |  |          |                  |  |                                                                                                                                                                                                                                                                   
|-------------------------------------------------- |  | ------------- | -------- |  | --------- |  | -------- | ---------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                                   |  | Agreed period |          |  | Severance |  |          |                 
|Name/title                                         |  | of notice     |          |  | pay       |  |          | Pension benefits
|                                                   |  |               |          |  |           |  |          |                 
|Senior Executive Vice President Arve Johansen(2)   |  |               | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 60. The Pension-qualifying
    income will be equal to the salary of December 31, 2004,
    with an annual regulation according to the consumer price index.
|Executive Vice President and CFO, Trond Ø. Westlie |  |               | 6 months |  |           |  | 6 months |                  |  | Defined contribution plan with 30% of salary above 12G with
    right to retire at the age of 65.                                                                                                                                                                 
|Executive Vice President Stig Eide Sivertsen       |  |               | 6 months |  |           |  | No       |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 62. The Pension-qualifying
    income will be equal to the salary of December 31, 2004,
    with an annual regulation according to the consumer price index.
|Executive Vice President Jan Edvard Thygesen       |  |               | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 62. The Pension-qualifying
    income will be equal to the salary of December 31, 2003,
    with an annual regulation according to the consumer price index.
|Executive Vice President Morten Karlsen Sørby      |  |               | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 62. The Pension-qualifying
    income will be equal to the salary of December 31, 2002,
    with an annual regulation according to the consumer price index.
|Executive Vice President Ragnar H Korsæth          |  |               | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 65. The Pension-qualifying
    income will be equal to the salary of December 31, 2002,
    with an annual regulation according to the consumer price index.
|Executive Vice President Bjørn Magnus Kopperud     |  |               | 6 months |  |           |  | 6 months |                  |  | 66% of Pension-qualifying income at the date of retirement with
    the right to retire at the age of 62. The Pension-qualifying
    income will be equal to the salary of December 31, 2002,
    with an annual regulation according to the consumer price index.






|    |                                                                                                                                                                                                                                                                                                                                                                 
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The share option programs for 2002, 2003 and 2004 are described
    in note 31. No share options were granted in 2005.                                                                                                                                                                                                                                          
|   
|(2) | Arve Johansen has an agreement which entitle him to a possible
    transfer to other tasks within the organization with the right
    to compensation of half his salary. These agreements relate to a
    specified time period up to the age of retirement. The future
    pension benefits are based on the salary at the time of transfer
    to other work.



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NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group






|                       |  |              |        |               |  |  |   | 
|---------------------- |  | ------------ | ------ | ------------- |  |  | - | 
|                       |  | Number of    |        | Number of    
|                       |  | shares as of |        | options as of
|                       |  | December 31, |        | December 31, 
|The Board of Directors |  | 2005         |        | 2005         
|                       |  |              |        |              
|Thorleif Enger         |  |              | 12,000 |               |  |  |  | 
|Bjørg Ven              |  |              | 10,000 |               |  |  |  | 
|Harald Stavn           |  |              | 3,844  |               |  |  |  | 
|Per Gunnar Salomonsen  |  |              | 1,896  |               |  |  |  | 
|Irma Tystad            |  |              | 813    |               |  |  |  | 

|                     |  |              |       | 
|-------------------- |  | ------------ | ----- | 
|                     |  | Number of   
|                     |  | shares as of
|                     |  | December 31,
|Deputy Board Members |  | 2005        
|                     |  |             
|Helge Enger          |  |              | 1,737 | 
|Roger Rønning        |  |              | 1,137 | 
|Ragnhild Hundere     |  |              | 275   | 
|Hjørdis Henriksen    |  |              | 275   | 

|                       |  |              |       | 
|---------------------- |  | ------------ | ----- | 
|                       |  | Number of   
|                       |  | shares as of
|                       |  | December 31,
|The Corporate Assembly |  | 2005        
|                       |  |             
|Arne Jenssen           |  |              | 407   | 
|Berit Kopren           |  |              | 275   | 
|Stein Erik Olsen       |  |              | 1,151 | 
|Inger-Grethe Solstad   |  |              | 682   | 

|                               |  |              |         |  |              |  |         |              |  |  |              |  |  |               |        |  |  |  |         | 
|------------------------------ |  | ------------ | ------- |  | ------------ |  | ------- | ------------ |  |  | ------------ |  |  | ------------- | ------ |  |  |  | ------- | 
|                               |  |              |         |  |              |  |         | Number of    |  |  | Number of    | 
|                               |  | Options from |         |  | Options from |  |         | Options from |  |  | shares as of |  |  | options as of |       
|                               |  | Feb 2002     |         |  | June 2002    |  |         | Feb 2003     |  |  | December 31, |  |  | December 31,  |       
|The Group Executive Management |  | program      |         |  | program      |  |         | program      |  |  | 2005         |  |  | 2005          |       
|                               |  |              |         |  |              |  |         |              |  |  |              |  |  |               |       
|Jon Fredrik Baksaas            |  |              | 100,000 |  |              |  | 150,000 |              |  |  | 250,000      |  |  |               | 34,852 |  |  |  | 500,000 | 
|Trond Ø. Westlie               |  |              |        |  |              |  |        |              |  |  |             |  |  |               |       |  |  |  |        | 
|Arve Johansen                  |  |              | 100,000 |  |              |  |        |              |  |  | 100,000      |  |  |               | 51,462 |  |  |  | 200,000 | 
|Morten Karlsen Sørby           |  |              | 70,000  |  |              |  |        |              |  |  | 75,000       |  |  |               | 7,794  |  |  |  | 145,000 | 
|Jan Edvard Thygesen            |  |              | 75,000  |  |              |  |        |              |  |  | 75,000       |  |  |               | 56,278 |  |  |  | 150,000 | 
|Stig Eide Sivertsen            |  |              | 75,000  |  |              |  |        |              |  |  | 75,000       |  |  |               | 28,765 |  |  |  | 150,000 | 
|Ragnar H. Korsæth              |  |              | 20,000  |  |              |  |        |              |  |  | 30,000       |  |  |               | 5,670  |  |  |  | 50,000  | 
|Bjørn Magnus Kopperud          |  |              | 50,000  |  |              |  |        |              |  |  | 50,000       |  |  |               | 2,777  |  |  |  | 100,000 | 

F-89



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Fees to the auditors




|                      |  |            |      |              |  |              |      |            |  |      |     |      |  |      |     |      |  |  |     |  |  |  |     |  |  |  |     |  |  |  |     | 
|--------------------- |  | ---------- | ---- | ------------ |  | ------------ | ---- | ---------- |  | ---- | --- | ---- |  | ---- | --- | ---- |  |  | --- |  |  |  | --- |  |  |  | --- |  |  |  | --- | 
|                      |  |            |      | Audit        |  | Fees for     |      |           
|                      |  | Audit fees |      | related fees |  | tax services |      | Other fees
|                      |  |            |      |              |  |              |      |           
|                      |  | 2004       |      | 2005         |  | 2004         |      | 2005       |  | 2004 |     | 2005 |  | 2004 |     | 2005
|                      |  |            |      |              |  |              |      |            |  |      |     |      |  |      |     |     
|Telenor ASA           |  |            |      |              |  |              |      |            |  |      |     |      |  |      |     |      |  |  |     |  |  |  |     |  |  |  |     |  |  |  |     | 
|Group Auditor         |  |            | 2.6  |              |  |              | 3.1  |            |  |      | 2.9 |      |  |      | 5.0 |      |  |  | 1.2 |  |  |  | 0.5 |  |  |  |    |  |  |  |    | 
|Other Auditors        |  |            |     |              |  |              |     |            |  |      |    |      |  |      |    |      |  |  |    |  |  |  |    |  |  |  |    |  |  |  |    | 
|Other Group companies |  |            |      |              |  |              |      |            |  |      |     |      |  |      |     |      |  |  |     |  |  |  |     |  |  |  |     |  |  |  |     | 
|Group Auditor         |  |            | 26.4 |              |  |              | 38.6 |            |  |      | 7.1 |      |  |      | 4.3 |      |  |  | 4.0 |  |  |  | 5.1 |  |  |  | 0.7 |  |  |  | 1.0 | 
|Other Auditors        |  |            | 0.2  |              |  |              | 0.1  |            |  |      |    |      |  |      | 0.1 |      |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.1 |  |  |  | 0.1 | 



31.     SHARE OPTION PLANS






Option program for shares in Telenor ASA






F-90



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NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                |  |               |           |                     |  |                        |       |  |  |  |       | 
|------------------------------- |  | ------------- | --------- | ------------------- |  | ---------------------- | ----- |  |  |  | ----- | 
|                                |  |               |           | Estimated fair      |  | Average exercise price
|                                |  |               |           | value at grant date |  | at the end            
|Share Options Telenor ASA       |  | Share options |           | (per share option)  |  | of option life(1)     
|                                |  |               |           |                     |  |                       
|Balance as of December 31, 2003 |  |               | 5,103,333 |                     |  |                        |      |  |  |  | 38.06 | 
|Options granted in 2004         |  |               | 380,000   |                     |  |                        | 11.89 |  |  |  | 48.36 | 
|Options forfeited in 2004       |  |               | 45,000    |                     |  |                        |      |  |  |  | 26.98 | 
|Options exercised in 2004       |  |               | 1,027,994 |                     |  |                        |      |  |  |  | 33.44 | 
|                                |  |               |           |                     |  |                        |       |  |  |  |       | 
|Balance as of December 31, 2004 |  |               | 4,410,339 |                     |  |                        |      |  |  |  | 33.97 | 
|                                |  |               |           |                     |  |                        |       |  |  |  |       | 
|Options granted in 2005         |  |               |          |                     |  |                        |      |  |  |  |      | 
|Options forfeited in 2005       |  |               | 145,000   |                     |  |                        |      |  |  |  | 44.98 | 
|Options exercised in 2005       |  |               | 1,237,675 |                     |  |                        |      |  |  |  | 33.11 | 
|                                |  |               |           |                     |  |                        |       |  |  |  |       | 
|Balance as of December 31, 2005 |  |               | 3,027,664 |                     |  |                        |      |  |  |  | 34.11 | 
|                                |  |               |           |                     |  |                        |       |  |  |  |       | 





|                 |         |             |  |              |           |                |  |              |         |  |  |  |           |  |  |  |         | 
|---------------- | ------- | ----------- |  | ------------ | --------- | -------------- |  | ------------ | ------- |  |  |  | --------- |  |  |  | ------- | 
|                 |         |             |  |              |           | Weighted       |  |             
|                 |         |             |  | Options      |           | average        |  | Options     
|                 |         |             |  | exercisable  |           | remaining life |  | exercisable 
|                 |         |             |  | as of        |           | as of          |  | as of       
|Weighted average |         | Options     |  | December 31, |           | December 31,   |  | December 31,
|exercise price   |         | outstanding |  | 2004(1)      |           | 2005           |  | 2005(1)     
|                 |         |             |  |              |           |                |  |             
|(in NOK)         |         |             |  |              |           |                |  |             
|                 | 41,67(1 | )(2)        |  |              | 937,667   |                |  |              | 913,667 |  |  |  | 3.1 years |  |  |  | 937,667 | 
|                 | 33,32(1 | )(3)        |  |              | 150,000   |                |  |              | 100,000 |  |  |  | 3.1 years |  |  |  | 150,000 | 
|                 | 26.44(4 | )           |  |              | 1,706,664 |                |  |              | 583,328 |  |  |  | 4.1 years |  |  |  | 906,674 | 
|                 | 48.36(5 | )           |  |              | 233,333   |                |  |              |        |  |  |  | 4.8 years |  |  |  | 53,333  | 






|    |                                                                                                                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Exercise price for the share option programs of 2002 are
    calculated at the latest possible date of exercise, and based on
    12 month NIBOR, implied forward rates calculated of the
    spot curve (February 20, 2006, and June 20, 2005). For
    the share option programs of 2003 and 2004, the exercise prices
    are fixed throughout the options terms.
|   
|(2) | First possible exercise was February 2003 for 1/3 of the options.                                                                                                                                                                                                                                                                                                    
|   
|(3) | First possible exercise was July 2003 for 1/3 of the options.                                                                                                                                                                                                                                                                                                        
|   
|(4) | First possible exercise was February 2004 for 1/3 of the options.                                                                                                                                                                                                                                                                                                    
|   
|(5) | First possible exercise was February 2005 for 1/3 of the options.                                                                                                                                                                                                                                                                                                    



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




Option program for shares in EDB Business Partner ASA






|                                |                           |               |           |                     |  |                     |   |      |  |  |       |       | 
|------------------------------- | ------------------------- | ------------- | --------- | ------------------- |  | ------------------- | - | ---- |  |  | ----- | ----- | 
|                                |                           |               |           | Estimated fair      |  | Average exercise   
|                                |                           |               |           | value at grant date |  | price at the end of
|                                |                           | Share options |           | (per share option)  |  | option life        
|                                |                           |               |           |                     |  |                    
|Balance as of December 31, 2003 |                           |               | 9,884,997 |                     |  |                     |  |      |  |  | 117.7 |      
|                                | Options granted in 2004   |               |           | 1,014,994           |  |                     |   | 9.43 |  |  |       | 45.5  | 
|                                | Options exercised in 2004 |               |           |                    |  |                     |   |     |  |  |       |      | 
|                                | Options forfeited in 2004 |               |           | 9,284,997           |  |                     |   |     |  |  |       | 118.7 | 
|                                |                           |               |           |                     |  |                     |   |      |  |  |       |      
|Balance as of December 31, 2004 |                           |               | 1,624,994 |                     |  |                     |  |      |  |  | 34.5  |      
|                                |                           |               |           |                     |  |                     |   |      |  |  |       |      
|                                | Options granted in 2005   |               |           | 345,000             |  |                     |   | 8.42 |  |  |       | 48.5  | 
|                                | Options exercised in 2005 |               |           | 34,117              |  |                     |   |     |  |  |       | 45.5  | 
|                                | Options cancelled in 2005 |               |           | 98,484              |  |                     |   |     |  |  |       | 45.4  | 
|                                | Options forfeited in 2005 |               |           |                    |  |                     |   |     |  |  |       |      | 
|                                |                           |               |           |                     |  |                     |   |      |  |  |       |      
|Balance as of December 31, 2005 |                           |               | 1,837,393 |                     |  |                     |  |      |  |  | 36.3  |      
|                                |                           |               |           |                     |  |                     |   |      |  |  |       |      



F-92



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                |  |             |         |          |                |  |                   |              |  |                   |              |  |  |  |         | 
|------------------------------- |  | ----------- | ------- | -------- | -------------- |  | ----------------- | ------------ |  | ----------------- | ------------ |  |  |  | ------- | 
|                                |  |             |         | Weighted |                |  | Options           |              |  | Options           |             
|                                |  |             |         | average  |                |  | exercisable as of |              |  | exercisable as of |             
|                                |  | Options     |         |          | remaining life |  |                   | December 31, |  |                   | December 31, | 
|Weighted average exercise price |  | outstanding |         |          | (in years)     |  |                   | 2004         |  |                   | 2005         | 
|                                |  |             |         |          |                |  |                   |              |  |                   |              | 
|(in NOK)                        |  |             |         |          |                |  |                   |             
|15.94                           |  |             | 600,000 |          |                |  | 4.3               |              |  |                   | 200,000      |  |  |  | 400,000 | 
|45.55                           |  |             | 892,393 |          |                |  | 0.7               |              |  |                   |             |  |  |  | 429,138 | 
|48.27                           |  |             | 220,000 |          |                |  | 1.5               |              |  |                   |             |  |  |  |        | 
|49.05                           |  |             | 125,000 |          |                |  | 2.8               |              |  |                   |             |  |  |  |        | 



Option program for shares in Telenor ASA and EDB Business
Partner ASA




|                          |                  |                |      |      |                |  |     |                   |   |  |      |      |   |  |           |           | 
|------------------------- | ---------------- | -------------- | ---- | ---- | -------------- |  | --- | ----------------- | - |  | ---- | ---- | - |  | --------- | --------- | 
|                          |                  |                |      |      |                |  |     | Weighted average  |  
|                          |                  | Risk free rate |      |      | Dividend yield |  |     | Volatility factor |   |  | life |     
|                          |                  |                |      |      |                |  |     |                   |   |  |      |     
|Telenor ASA 2002 programs |                  |                | 6.40 | %    |                |  | 2.0 | %                 |   |  | 31.3 | %    |   |  | 4.5 years |          
|Telenor ASA 2003 program  |                  |                | 4.80 | %    |                |  | 2.0 | %                 |   |  | 32.3 | %    |   |  | 4.5 years |          
|Telenor ASA 2004 program  |                  |                | 3.13 | %    |                |  | 2.0 | %                 |   |  | 36.5 | %    |   |  | 4.5 years |          
|EDB Business Partner      |                  |                |      |      |                |  |     |                   |   |  |      |      |   |  |           |          
|                          | ASA 2003 program |                |      | 5.05 | %              |  |     | 0.0               | % |  |      | 66.9 | % |  |           | 4.5 years | 
|EDB Business Partner ASA  |                  |                |      |      |                |  |     |                   |   |  |      |      |   |  |           |          
|                          | 2004 programs    |                |      | 2.50 | %              |  |     | 0.0               | % |  |      | 54.4 | % |  |           | 1.5 years | 
|EDB Business Partner ASA  |                  |                |      |      |                |  |     |                   |   |  |      |      |   |  |           |          
|                          | 2005 programs    |                |      | 3.66 | %              |  |     | 0.0               | % |  |      | 53.3 | % |  |           | 1.5 years | 



32.     NUMBER OF SHARES, OWNERSHIP
ETC.






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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group












|                               |  |           |             |  |   |  |       | 
|------------------------------ |  | --------- | ----------- |  | - |  | ----- | 
|                               |  | Number    |             |  |  
|Name of shareholders           |  | of shares |             |  | % | 
|                               |  |           |             |  |   | 
|Ministry of Trade and Industry |  |           | 920,954,183 |  |   |  | 53.97 | 
|State Street Bank (nominee)    |  |           | 70,678,407  |  |   |  | 4.14  | 
|National Insurance Scheme Fund |  |           | 58,457,361  |  |   |  | 3.43  | 
|JPMorgan Chase Bank (nominee)  |  |           | 36,835,870  |  |   |  | 2.16  | 
|Mellon Bank (nominee)          |  |           | 23,704,040  |  |   |  | 1.39  | 
|JPMorgan Chase Bank (nominee)  |  |           | 21,078,068  |  |   |  | 1.24  | 

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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


33.     LICENSES




|                                   |  |          |                 |  |              |         |                |      |         |  |            |  |  |  |                  | 
|---------------------------------- |  | -------- | --------------- |  | ------------ | ------- | -------------- | ---- | ------- |  | ---------- |  |  |  | ---------------- | 
|                                   |  |          |                 |  |              | License |                |      |        
|                                   |  |          |                 |  |              | valid   |                |      | License | 
|Company                            |  | Licenses |                 |  | Network type |         |                | from |         |  | expiration | 
|                                   |  |          |                 |  |              |         |                |      |         |  |            | 
|Telenor ASA/ Telenor Mobil AS      |  |          | GSM 900         |  |              |         | GSM/GPRS/EDGE  |      |         |  | 1992       |  |  |  | 2017(1)          | 
|                                   |  |          | GSM 900         |  |              |         |                |      |         |  | 2001       |  |  |  | 2013             | 
|                                   |  |          | GSM 1800        |  |              |         |                |      |         |  | 1998       |  |  |  | 2010             | 
|                                   |  |          | UMTS            |  |              |         | W-CDMA         |      |         |  | 2000       |  |  |  | 2012             | 
|Sonofon Holding A/ S(2)            |  |          | GSM 900         |  |              |         | GSM/GPRS       |      |         |  | 1997       |  |  |  | 2012             | 
|                                   |  |          | GSM 1800        |  |              |         |                |      |         |  | 1997       |  |  |  | 2007             | 
|                                   |  |          | GSM 1800        |  |              |         |                |      |         |  | 2001       |  |  |  | 2011             | 
|                                   |  |          | UMTS            |  |              |         | W-CDMA         |      |         |  | 2005       |  |  |  | 2021             | 
|Kyivstar GSM JSC(3)                |  |          | GSM 900         |  |              |         | GSM/GPRS       |      |         |  | 1997       |  |  |  | 2012             | 
|                                   |  |          | GSM 1800        |  |              |         |                |      |         |  | 2001       |  |  |  | 2016             | 
|Pannon GSM Rt.                     |  |          | GSM 900         |  |              |         | GSM/GPRS/EDGE  |      |         |  | 1993       |  |  |  | 2008             | 
|                                   |  |          | GSM 1800        |  |              |         |                |      |         |  | 1999       |  |  |  | 2014             | 
|                                   |  |          | UMTS            |  |              |         | W-CDMA         |      |         |  | 2004       |  |  |  | 2019             | 
|Total Access Communications PCL(4) |  |          | AMPS 800        |  |              |         | GSM            |      |         |  | 1990       |  |  |  | 2018             | 
|                                   |  |          | GSM 1800        |  |              |         |                |      |         |  | 1990       |  |  |  | 2018             | 
|DiGi.Com bhd(5)                    |  |          | GSM 1800        |  |              |         | GSM/GPRS/EDGE  |      |         |  | 1995       |  |  |  | 2015             | 
|                                   |  |          | EGSM            |  |              |         |                |      |         |  |            |  |  |  |                  | 
|GrameenPhone Ltd.                  |  |          | GSM 900         |  |              |         | GSM            |      |         |  | 1996       |  |  |  | 2011             | 
|                                   |  |          | GSM 1800        |  |              |         |                |      |         |  |            |  |  |  |                  | 
|Telenor Pakistan (Private) Ltd.    |  |          | GSM 900         |  |              |         | GSM/GPRS/EDGE  |      |         |  | 2004       |  |  |  | 2019             | 
|                                   |  |          | GSM 1800        |  |              |         |                |      |         |  | 2004       |  |  |  | 2019             | 
|                                   |  |          | Long Distance   |  |              |         |                |      |         |  | 2004       |  |  |  | 2024             | 
|                                   |  |          | International   |  |              |         |                |      |         |  |            |  |  |  |                  | 
|ProMonte GSM D.O.O.                |  |          | GSM 900         |  |              |         | GSM/GPRS       |      |         |  | 2002       |  |  |  | 2017             | 
|                                   |  |          | GSM 1800        |  |              |         |                |      |         |  | 2002       |  |  |  | 2017             | 
|Telenor Telecom Solutions AS       |  |          | Radio frequency |  |              |         | Fixed networks |      |         |  | 2005       |  |  |  | 2022             | 
|                                   |  |          | band, 11 GHz    |  |              |         |                |      |         |  | 2004       |  |  |  | 2022             | 
|                                   |  |          | Wimax           |  |              |         |                |      |         |  | 1988       |  |  |  | Not time limited | 
|                                   |  |          | Radio links(6)  |  |              |         |                |      |         |  |            |  |  |  |                  | 






|    |                                                                                                                                                                                                
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | The license was extended in 2005.                                                                                                                                                              
|   
|(2) | In addition to the mobile operating licenses, Sonofon holds
    licenses for fixed radio links as well as a national FWA/ Wimax
    network license in the 3,5 GHz band, which expires in 2011.
|   
|(3) | In addition to the operating licenses, Kyivstar holds a number
    of regional frequency licenses.                                                                                             
|   
|(4) | Rather than a license, DTAC has the right to operate a mobile
    network pursuant to a concession.                                                                                            
|   
|(5) | Rather than a license, DiGi.Com holds the right to operate a
    mobile network (Spectrum allocation). This was
    extended in 2001.                                                        

F-95



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|(6) | Telenor is dependent on a number of radio links in the fixed
    network business, both in and outside Norway, that to a large
    extent require licenses.

1-degree






34.     PLEDGES AND GUARANTEES


|                                                       |  |                   |       |  |      |  |       | 
|------------------------------------------------------ |  | ----------------- | ----- |  | ---- |  | ----- | 
|                                                       |  | 2004              |       |  | 2005 | 
|                                                       |  |                   |       |  |      | 
|                                                       |  | (NOK in millions) |      
|Interest-bearing liabilities secured by assets pledged |  |                   | 2,184 |  |      |  | 1,384 | 
|Book value of assets pledged                           |  |                   | 8,752 |  |      |  | 5,013 | 



|           |  |                   |       |  |      |  |       | 
|---------- |  | ----------------- | ----- |  | ---- |  | ----- | 
|           |  | 2004              |       |  | 2005 | 
|           |  |                   |       |  |      | 
|           |  | (NOK in millions) |      
|Guarantees |  |                   | 2,169 |  |      |  | 2,498 | 













F-96



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


35.     EVENTS AFTER THE BALANCE
SHEET DATE






36. EQUITY  NOTES


Total paid capital


|                                |  |           |               |             |  |             |        |             |  |             |        |   |  |  |        |   |  |  |        |  
|------------------------------- |  | --------- | ------------- | ----------- |  | ----------- | ------ | ----------- |  | ----------- | ------ | - |  |  | ------ | - |  |  | ------ | -
|                                |  | Number of |               | Share       |  | Other paid  |        |             |  | Total paid 
|                                |  | shares    |               | capital     |  | capital     |        | Own shares  |  | capital    
|                                |  |           |               |             |  |             |        |             |  |            
|                                |  |           |               | (NOK mill.) |  | (NOK mill.) |        | (NOK mill.) |  | (NOK mill.)
|Balance as of January 1, 2004   |  |           | 1,804,021,281 |             |  |             | 10,824 |             |  |             | 18,656 |   |  |  | (169   | ) |  |  | 29,311 |  
|Share buy back                  |  |           |              |             |  |             |       |             |  |             |       |   |  |  | (2,020 | ) |  |  | (2,020 | )
|Cancellation of shares          |  |           | (55,444,964   | )           |  |             | (332   | )           |  |             | (1,152 | ) |  |  | 1,484  |   |  |  |       |  
|Share option granted            |  |           | 1,027,994     |             |  |             | 6      |             |  |             | 28     |   |  |  |       |   |  |  | 34     |  
|Employee share program          |  |           |              |             |  |             |       |             |  |             | 2      |   |  |  | 18     |   |  |  | 20     |  
|Bonus shares                    |  |           | 92,736        |             |  |             |       |             |  |             | 5      |   |  |  |       |   |  |  | 5      |  
|                                |  |           |               |             |  |             |        |             |  |             |        |   |  |  |        |   |  |  |        |  
|Balance as of December 31, 2004 |  |           | 1,749,697,047 |             |  |             | 10,498 |             |  |             | 17,539 |   |  |  | (687   | ) |  |  | 27,350 |  
|                                |  |           |               |             |  |             |        |             |  |             |        |   |  |  |        |   |  |  |        |  
|Share buy back                  |  |           |              |             |  |             |       |             |  |             |       |   |  |  | (2,267 | ) |  |  | (2,267 | )
|Cancellation of shares          |  |           | (43,864,425   | )           |  |             | (263   | )           |  |             | (1,937 | ) |  |  | 2,200  |   |  |  |       |  
|Share option granted            |  |           | 737,671       |             |  |             | 4      |             |  |             | 21     |   |  |  |       |   |  |  | 25     |  
|Employee share program          |  |           |              |             |  |             |       |             |  |             | (6     | ) |  |  | 50     |   |  |  | 44     |  
|Bonus shares                    |  |           |              |             |  |             |       |             |  |             | 1      |   |  |  | 4      |   |  |  | 5      |  
|                                |  |           |               |             |  |             |        |             |  |             |        |   |  |  |        |   |  |  |        |  
|Balance as of December 31, 2005 |  |           | 1,706,570,293 |             |  |             | 10,239 |             |  |             | 15,618 |   |  |  | (700   | ) |  |  | 25,157 |  
|                                |  |           |               |             |  |             |        |             |  |             |        |   |  |  |        |   |  |  |        |  



F-97



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Other reserves


|                                                                  |  |                   |       |         |  |               |    |               |  |         |       |     |  |             |    |  |  |  |    |  |  |  |      |   |  |  |       |  
|----------------------------------------------------------------- |  | ----------------- | ----- | ------- |  | ------------- | -- | ------------- |  | ------- | ----- | --- |  | ----------- | -- |  |  |  | -- |  |  |  | ---- | - |  |  | ----- | -
|                                                                  |  |                   |       |         |  | Business      |    |               |  |         |       |     |  |            
|                                                                  |  |                   |       |         |  | combinations  |    |               |  |         |       |     |  |            
|                                                                  |  |                   |       |         |  | and increased |    | Equity        |  |         |       |     |  |            
|                                                                  |  | Investment        |       |         |  | ownership     |    | adjustments   |  | Share   |       |     |  |            
|                                                                  |  | revaluation       |       | Hedging |  | interests in  |    | in associated |  | options |       |     |  | Total other
|                                                                  |  | reserve           |       | reserve |  | subsidiaries  |    | companies     |  | reserve |       | Tax |  | reserves   
|                                                                  |  |                   |       |         |  |               |    |               |  |         |       |     |  |            
|                                                                  |  | (NOK in millions)
|Balance as of January 1, 2004  Restated
    according to IFRS(*) |  |                   |       |         |  |               |    |               |  |         | (732  | )   |  |             |    |  |  |  |    |  |  |  |      |   |  |  | (732  | )
|Changes during 2004                                               |  |                   |       |         |  |               |    |               |  |         | 871   |     |  |             | 62 |  |  |  | 16 |  |  |  | (253 | ) |  |  | 696   |  
|Balance as of December 31, 2004                                   |  |                   |       |         |  |               |    |               |  |         | 139   |     |  |             | 62 |  |  |  | 16 |  |  |  | (253 | ) |  |  | (36   | )
|                                                                  |  |                   |       |         |  |               |    |               |  |         |       |     |  |             |    |  |  |  |    |  |  |  |      |   |  |  |       |  
|Implementation of IAS 32 and 39                                   |  |                   | 746   |         |  |               | 13 |               |  |         |       |     |  |             |    |  |  |  |    |  |  |  | (98  | ) |  |  | 661   |  
|Adjusted as of January 1, 2005                                    |  |                   | 746   |         |  |               | 13 |               |  |         | 139   |     |  |             | 62 |  |  |  | 16 |  |  |  | (351 | ) |  |  | 625   |  
|                                                                  |  |                   |       |         |  |               |    |               |  |         |       |     |  |             |    |  |  |  |    |  |  |  |      |   |  |  |       |  
|Changes during 2005                                               |  |                   | 1,052 |         |  |               | 24 |               |  |         | 1,829 |     |  |             | 1  |  |  |  | 6  |  |  |  | (459 | ) |  |  | 2,453 |  
|Balance as of December 31, 2005                                   |  |                   | 1,798 |         |  |               | 37 |               |  |         | 1,968 |     |  |             | 63 |  |  |  | 22 |  |  |  | (810 | ) |  |  | 3,078 |  
|                                                                  |  |                   |       |         |  |               |    |               |  |         |       |     |  |             |    |  |  |  |    |  |  |  |      |   |  |  |       |  






|    |            
|--- | -----------
|(*) | See note 37





Cumulative translation differences


|                                                                  |  |                    |        |                |  |     |      |                   |  |  |      |   |  |  |      |  
|----------------------------------------------------------------- |  | ------------------ | ------ | -------------- |  | --- | ---- | ----------------- |  |  | ---- | - |  |  | ---- | -
|                                                                  |  | Foreign currency   |        |                |  |     |      |                  
|                                                                  |  | translation of net |        | Net investment |  |     |      | Total Translation
|                                                                  |  | investment         |        | hedge          |  | Tax |      | differences      
|                                                                  |  |                    |        |                |  |     |      |                  
|                                                                  |  | (NOK in millions) 
|Balance as of January 1, 2004  Restated
    according to IFRS(*) |  |                    |        |                |  |     |      |                   |  |  |      |   |  |  |      |  
|Changes during 2004                                               |  |                    | (1,136 | )              |  |     | 815  |                   |  |  | (284 | ) |  |  | (605 | )
|Balance as of December 31, 2004                                   |  |                    | (1,136 | )              |  |     | 815  |                   |  |  | (284 | ) |  |  | (605 | )
|                                                                  |  |                    |        |                |  |     |      |                   |  |  |      |   |  |  |      |  
|Changes during 2005                                               |  |                    | 827    |                |  |     | (302 | )                 |  |  | (12  | ) |  |  | 513  |  
|Balance as of December 31, 2005                                   |  |                    | (309   | )              |  |     | 513  |                   |  |  | (296 | ) |  |  | (92  | )
|                                                                  |  |                    |        |                |  |     |      |                   |  |  |      |   |  |  |      |  






|    |            
|--- | -----------
|(*) | See note 37



|    |                                                        
|--- | -------------------------------------------------------
|37. | ADOPTION OF INTERNATIONAL FINANCIAL REPORTING STANDARDS



F-98



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group








Business combinations:




Impairment of
Assets


b) Employee benefits:


c) Share-based payments:


F-99



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




d) Cumulative translation differences


e) IAS 32 Financial Instruments: Disclosure and
Presentation and IAS 39 Financial Instruments: Recognition and Measurement




F-100



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Reconciliation of net income and shareholders equity
for the Telenor Group from N GAAP to IFRS




Consolidated Income Statement As of December 31, 2004


|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|-------------------------------------------------- |  | ---- | ---------------- | ------------------------------------------ |  | ----------------- | ------ | ----------- |  | -------- | ---- | - |  |  | ----- | - |  |  | ------ | -
|                                                   |  |      |                  | N GAAP                                     |  | IFRS              |        |             |  |         
|                                                   |  | Note |                  | Reported                                   |  | Reclassifications |        | Adjustments |  | Adjusted
|                                                   |  |      |                  |                                            |  |                   |        |             |  |         
|                                                   |  |      |                  | (NOK in millions except per share amounts)
|Revenues                                           |  |      | (1a), (1b), (14) |                                            |  |                   | 60,752 |             |  |          |     |   |  |  | (161  | ) |  |  | 60,591 |  
|Gains on disposal of fixed assets and operations   |  |      | (2)              |                                            |  |                   | 550    |             |  |          | (550 | ) |  |  |      |   |  |  |       |  
|Total revenues                                     |  |      |                  |                                            |  |                   | 61,302 |             |  |          | (550 | ) |  |  | (161  | ) |  |  | 60,591 |  
|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Operating expenses                                 |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Costs of materials and traffic charges             |  |      | (1b)             |                                            |  |                   | 16,070 |             |  |          |     |   |  |  | (146  | ) |  |  | 15,924 |  
|Own work capitalized                               |  |      |                  |                                            |  |                   | (557   | )           |  |          |     |   |  |  |      |   |  |  | (557   | )
|Salaries and personnel costs                       |  |      | (1b), (3), (4)   |                                            |  |                   | 10,021 |             |  |          |     |   |  |  | (51   | ) |  |  | 9,970  |  
|Other operating expenses                           |  |      | (1b), (2), (5)   |                                            |  |                   | 14,873 |             |  |          | (898 | ) |  |  | (104  | ) |  |  | 13,871 |  
|Losses on disposal of fixed assets and operations  |  |      | (2)              |                                            |  |                   | 74     |             |  |          | (74  | ) |  |  |      |   |  |  |       |  
|Other income and expenses                          |  |      | (2), (10), (11)  |                                            |  |                   |       |             |  |          | 422  |   |  |  | (574  | ) |  |  | (152   | )
|Amortization of goodwill                           |  |      | (7)              |                                            |  |                   | 939    |             |  |          |     |   |  |  | (939  | ) |  |  |       |  
|Depreciation and amortization  other              |  |      | (5), (6)         |                                            |  |                   | 10,684 |             |  |          |     |   |  |  | (47   | ) |  |  | 10,637 |  
|Write-downs                                        |  |      | (8)              |                                            |  |                   | 2,596  |             |  |          |     |   |  |  | 935   |   |  |  | 3,531  |  
|Total operating expenses                           |  |      |                  |                                            |  |                   | 54,700 |             |  |          | (550 | ) |  |  | (926  | ) |  |  | 53,224 |  
|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Operating profit                                   |  |      |                  |                                            |  |                   | 6,602  |             |  |          |     |   |  |  | 765   |   |  |  | 7,367  |  
|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Associated companies                               |  |      | (9)              |                                            |  |                   | 718    |             |  |          |     |   |  |  | 268   |   |  |  | 986    |  
|Financial income and expenses                      |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Financial income                                   |  |      |                  |                                            |  |                   | 496    |             |  |          |     |   |  |  |      |   |  |  | 496    |  
|Financial expenses                                 |  |      | (5)              |                                            |  |                   | (1,534 | )           |  |          |     |   |  |  | (27   | ) |  |  | (1,561 | )
|Net currency loss                                  |  |      |                  |                                            |  |                   | (87    | )           |  |          |     |   |  |  |      |   |  |  | (87    | )
|Net gain (loss) and write-downs of financial items |  |      | (10)             |                                            |  |                   | 2,651  |             |  |          |     |   |  |  | 22    |   |  |  | 2,673  |  
|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Net financial items                                |  |      |                  |                                            |  |                   | 1,526  |             |  |          |     |   |  |  | (5    | ) |  |  | 1,521  |  
|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Profit before taxes and minority interests         |  |      |                  |                                            |  |                   | 8,846  |             |  |          |     |   |  |  | 1,028 |   |  |  | 9,874  |  
|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Taxes                                              |  |      | (11)             |                                            |  |                   | (2,244 | )           |  |          |     |   |  |  | (217  | ) |  |  | (2,461 | )
|Profit before minority interests                   |  |      |                  |                                            |  |                   | 6,602  |             |  |          |     |   |  |  | 811   |   |  |  | 7,413  |  
|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Minority interests                                 |  |      | (13)             |                                            |  |                   | (1,244 | )           |  |          |     |   |  |  | (76   | ) |  |  | (1,320 | )
|Net income                                         |  |      |                  |                                            |  |                   | 5,358  |             |  |          |     |   |  |  | 735   |   |  |  | 6,093  |  
|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  
|Net income per share in NOK (basic)                |  |      | 3.07             |                                            |  |                   |       |             |  |          |      |   |  |  | 0.42  |   |  |  | 3.49   |  
|Net income per share in NOK (diluted)              |  |      | 3.06             |                                            |  |                   |       |             |  |          |      |   |  |  | 0.42  |   |  |  | 3.48   |  
|                                                   |  |      |                  |                                            |  |                   |        |             |  |          |      |   |  |  |       |   |  |  |        |  

F-101



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Profit and loss 2004


|                                            |  |      |     |                   |  |  |       |  
|------------------------------------------- |  | ---- | --- | ----------------- |  |  | ----- | -
|                                            |  | Note |     | 2004             
|                                            |  |      |     |                  
|                                            |  |      |     | (NOK in millions)
|Net income  NGAAP                          |  |      |     |                   |  |  | 5,358 |  
|Amortization of goodwill, negative goodwill |  |      | (7  | )                 |  |  | 939   |  
|Depreciation and amortization  other       |  |      | (6  | )                 |  |  | 63    |  
|Write-down of goodwill                      |  |      | (8  | )                 |  |  | (935  | )
|Pensions                                    |  |      | (3  | )                 |  |  | 95    |  
|Asset Retirement Obligations                |  |      | (5  | )                 |  |  | (46   | )
|Share-based compensation                    |  |      | (4  | )                 |  |  | (19   | )
|Sale of software                            |  |      | (1a | )                 |  |  | 51    |  
|Associated companies                        |  |      | (9  | )                 |  |  | 268   |  
|Adjusted gains                              |  |      | (10 | )                 |  |  | 34    |  
|MVNO                                        |  |      | (11 | )                 |  |  | 578   |  
|Tax on IFRS adjustments                     |  |      | (12 | )                 |  |  | (217  | )
|Minority interests                          |  |      | (14 | )                 |  |  | (76   | )
|Total adjustments                           |  |      |     |                   |  |  | 735   |  
|                                            |  |      |     |                   |  |  |       |  
|Net income  IFRS                           |  |      |     |                   |  |  | 6,093 |  
|                                            |  |      |     |                   |  |  |       |  

Equity


|                                            |  |      |     |                   |  |              |        |   |  |  |        |  
|------------------------------------------- |  | ---- | --- | ----------------- |  | ------------ | ------ | - |  |  | ------ | -
|                                            |  |      |     | January 1,        |  | December 31,
|                                            |  | Note |     | 2004              |  | 2004        
|                                            |  |      |     |                   |  |             
|                                            |  |      |     | (NOK in millions)
|Shareholders equity  NGAAP                 |  |      |     |                   |  |              | 37,237 |   |  |  | 37,594 |  
|                                            |  |      |     |                   |  |              |        |   |  |  |        |  
|Amortization of goodwill, negative goodwill |  |      | (7  | )                 |  |              | 343    |   |  |  | 1,282  |  
|Depreciation and amortization  other       |  |      | (6  | )                 |  |              |       |   |  |  | 63     |  
|Write-down of goodwill                      |  |      | (8  | )                 |  |              |       |   |  |  | (935   | )
|Business Combinations                       |  |      | (8  | )                 |  |              |       |   |  |  | 875    |  
|Pensions                                    |  |      | (3  | )                 |  |              | (1,809 | ) |  |  | (1,714 | )
|Asset Retirement Obligations                |  |      | (5  | )                 |  |              | (296   | ) |  |  | (342   | )
|Share-based compensation                    |  |      | (4  | )                 |  |              |       |   |  |  |       |  
|Sale of software                            |  |      | (1a | )                 |  |              | (267   | ) |  |  | (216   | )
|Associated companies                        |  |      | (9  | )                 |  |              | (139   | ) |  |  | 129    |  
|Adjusted gains and translation differences  |  |      | 10  | )                 |  |              |       |   |  |  | (66    | )
|MVNO                                        |  |      | (11 | )                 |  |              |       |   |  |  | 578    |  
|Tax on IFRS adjustments                     |  |      | (12 | )                 |  |              | 592    |   |  |  | 122    |  
|Dividends                                   |  |      | (13 | )                 |  |              | 1,776  |   |  |  | 2,602  |  
|Minority interests                          |  |      | (14 | )                 |  |              | 226    |   |  |  | 150    |  
|Total adjustments                           |  |      |     |                   |  |              | 426    |   |  |  | 528    |  
|                                            |  |      |     |                   |  |              |        |   |  |  |        |  
|Shareholders equity  IFRS                  |  |      |     |                   |  |              | 37,663 |   |  |  | 40,122 |  
|                                            |  |      |     |                   |  |              |        |   |  |  |        |  

F-102



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group






|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1a) | Telenor is a provider of full service application and IT
    operating systems services. Under N GAAP, revenue from sale of
    software licenses and software upgrades was recognized upon
    their delivery. For revenue recognition related to software,
    according to the hierarchy in IAS 8 Telenor uses US GAAP
    principles to apply the general principles of IFRS to its
    specific circumstances. Revenue from sale of software licenses
    and software upgrades is deferred and recognized as revenue over
    the remaining software maintenance period as the customer does
    not have the right to use the software unless Telenor provides
    software maintenance. In addition, in conjunction with these
    contracts, Telenor may develop additional applications that are
    not essential to the use of the software. Under N GAAP, the fees
    for the development of the additional software were recognized
    based on the percentage of completion method of accounting.
    Under IFRS, these development fees are also deferred and
    recognized as revenue over the remaining software maintenance
    period.



| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | This reduced equity as of January 1, 2004, while revenues
    and profit before taxes and minority interest for 2004 increased.



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1b) | Under N GAAP, revenue from telecommunications installation fees
    and connection fees were recognized in revenue at the time of
    the sale and all initial related costs were expensed as
    incurred. Under IFRS, such connection and installation fees that
    do not represent a separate earnings process are deferred and
    recognized over the periods that the fees are earned which is
    the expected period of the customer relationship. Initial
    related costs to the extent of the deferred revenue are also
    deferred over the same period.



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For allocation of the consideration for revenue recognition for
    arrangements that involve the delivery or performance of
    multiple products or services, according to the hierarchy in IAS
    8 Telenor uses US GAAP principles to apply the general
    principles of IFRS to its specific circumstances.. Revenue
    arrangements with multiple deliverables are divided into
    separate units of accounting if the deliverables in the
    arrangement meet the following criteria: (1) the delivered
    item has value to the customer on a standalone basis;
    (2) there is objective and reliable evidence of the fair
    value of undelivered items; and (3) delivery of any
    undelivered item is probable. Arrangement consideration is
    allocated among the separate units of accounting based on their
    relative fair values, with the amount allocated to the delivered
    item being limited to the amount that is not contingent on the
    delivery of additional items or other specified performance
    criteria. Part of the connection fee has been allocated to sale
    of equipment and therefore recognized as revenue at the same
    time the equipment is recognized as revenue.
|
| |  | Telenor has reduced revenues for the year 2004 for deferred
    connection fees by NOK 102 million. Deferred connection
    fees and related costs recorded in the balance sheet amounted to
    NOK 1.5 billion as of January 1, 2004. This has no
    effect on equity or net income because the related costs are
    also deferred, limited to the amount of deferred revenues. Costs
    deferred for the year 2004 include a reduction of materials and
    traffic costs of NOK 20 million; an increase in salaries
    and personnel expenses of NOK 24 million; and a reduction
    of other operating expenses of NOK 106 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       



|    |                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Gains and losses on disposals of fixed assets and operations,
    expenses for workforce reductions and loss contracts are
    reclassified to a separate line item included in operating
    expenses according to IFRS.                                                                                                                   
|   
|(3) | Under IFRS, cumulative unrecognized actuarial losses on pension
    obligations are recorded to equity as of January 1, 2004.
    As a result, the N GAAP amortization of actuarial losses
    recorded to salaries and personnel expenses is reversed for IFRS.                                                                            
|   
|(4) | Share-based compensation increases salary and personnel expenses
    according to IFRS. This had no effect on equity.                                                                                                                                                                                                                       
|   
|(5) | According to IFRS, an asset retirement obligation exists where
    Telenor has a legal or constructive obligation to settle an
    asset retirement obligation. Where Telenor is required to settle
    an asset retirement obligation, Telenor has estimated and
    capitalized the net present value of the obligations and
    increased

F-103



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the carrying value of the related long-lived asset, with an
    amount equal to the depreciated value of the asset retirement
    obligation. Subsequent to the initial recognition, an accretion
    expense is recorded relating to the asset retirement obligation,
    and the capitalized cost is expensed as ordinary depreciation in
    accordance with the related asset. Under N GAAP, asset
    retirement obligations were limited to expenses to material
    known and planned removals within a reasonable timeframe.



| |  |                                                                                                                                                                                                                
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | The accumulated effects of asset retirement obligations were
    recorded to equity as of January 1, 2004. Net income is
    affected by the subsequent depreciation of fixed assets and
    interest expenses.



|    |                                                                                                                                                                                                                                                                                       
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(6) | Adjustment of the fair value for the acquisition of Sonofon
    results in lower amortization and depreciation expense related
    to other intangible assets and tangible fixed assets in 2004
    according to IFRS compared with N GAAP, see
    (a) business combinations above.
|   
|(7) | Goodwill is no longer amortized under IFRS, beginning from
    January 1, 2004 but is tested for impairment on an annual
    basis and whenever indicators of impairment arise.                                                                                                       



| |  |                                                                                                                                          
| |  | -----------------------------------------------------------------------------------------------------------------------------------------
| |  | In accordance with the transitional rules in IFRS 1,
    negative goodwill on Utfors AB was recorded to equity as of
    January 1, 2004.



|    |                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(8) | Compared with N GAAP, write-downs for the year 2004 increased
    under IFRS primarily due to a larger write-down of goodwill for
    Sonofon as of December 31, 2004. The book value of Sonofon
    was higher than N GAAP because goodwill was not amortized for
    IFRS in 2004 and due to the restatement of the acquisition as
    discussed in (a) business combinations above.



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | In addition, in the fourth quarter of 2004, NOK 50 million
    related to write-downs of goodwill on Utfors AB and Canal
    Digital Group due to previously not recognized deferred tax
    assets at acquisition of these companies. The tax assets did not
    satisfy the criteria for separate recognition when the business
    combinations were initially accounted for, but parts were
    realized in 2004. Both in N GAAP and IFRS the realized tax
    income was recognized in the profit or loss statement. According
    to IFRS, in addition, the acquirer shall reduce the carrying
    amount of goodwill and recognize the reduction as an expense.
    According to N GAAP, the carrying amount of goodwill was reduced
    and the carrying amount of deferred tax asset was increased, and
    the subsequent reduction in the carrying amount of deferred tax
    asset was recorded as a tax expense. However, according to both
    sets of accounting principles this procedure shall not result in
    negative goodwill, nor shall it increase negative goodwill
    previously recognized.
|
| |  | In principle, the adjustment for IFRS compared to N GAAP in the
    profit and loss statement should be a reclassification between
    write-down of goodwill and tax expense. However, due to
    different carrying amount of goodwill according to N GAAP
    compared to IFRS, the IFRS adjustment resulted in a write-down
    of goodwill of NOK 50 million for the fourth quarter of
    2004, and a tax income of only NOK 25 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         



|    |                                                                                                                                                                                                                                                 
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(9) | Telenors share of equity of associated companies decreased
    by NOK 139 million as of January 1, 2004, of which the
    adjustment for the cumulative unrecognized actuarial losses on
    pension obligations accounted for NOK 104 million.



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | According to N GAAP, investments in entities in which Telenor
    has an ownership that was considered to be temporary in nature
    were recorded at cost or written down to fair value. Under IFRS,
    temporary investments in which Telenor have significant
    influence, normally an ownership of 20% to 50% are accounted for
    under the equity method. As of January 1, 2004, this
    decreased equity by NOK 27 million.
|
| |  | The accumulated effect of NOK 8 million for asset
    retirement obligations in associated companies was recorded to
    equity according to IFRS as of January 1, 2004.                                                                                                                                                                                                                                                               

F-104



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




| |  |                                                                                                                                                                                                                         
| |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For the year 2004, the results from associated companies
    increased by NOK 268 million according to IFRS compared to
    N GAAP mainly due to the reversal of N GAAP amortization of
    goodwill of NOK 254 million.



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(10) | According to IFRS, gains on disposals of operations and
    financial assets increase compared to N GAAP for 2004, due to
    the effects of changes in pension obligations and translation
    differences. Translation differences also affected the IFRS
    adjustments for 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|    
|(11) | Telenor entered into Mobile Virtual Network Operator
    (MVNO) agreements, which includes sale of traffic in
    Telenors GSM and UMTS network in Norway. At the same time
    similar agreements for purchase of traffic in GSM and UMTS
    network in Sweden was made with the same counterpart. The
    agreements contain a fixed nonrefundable prepayment and a
    variable element based on the actual use of the services. In
    accordance with N GAAP the fixed and the variable element was
    recognized as revenues and cost of traffic based on the actual
    usage, and the prepayments between the parties were recognized
    in the balance sheet. During 2004 and 2005 Telenor recorded
    impairment losses on the prepayments in Sweden on this contract
    due to revised expectations of the usage of capacity of the MVNO
    agreement.



| |  |                                                                                                                                                                                                                                                                                                                                                   
| |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Under IFRS the fixed prepayments between the parties have been
    nullified since these fixed payments are on equal terms and are
    non refundable. Consequently, the prepayments and the revenue
    and traffic costs and the loss provisions in 2004 and 2005 have
    been eliminated on the Group level.                                  
|
| |  | Compared to N GAAP, Telenor has reduced revenues for 2004 by NOK
    110 million, reduced cost of goods sold and traffic charges
    by NOK 126 million, reduced other expenses (onerous
    contracts) by NOK 562 million and increased income tax
    expense by NOK 162 million, resulting in an increase in net
    income of NOK 416 million.



|     |                                                                                                                                                                                                                                                                           
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(12) | Tax on IFRS adjustments relate primarily to pensions, business
    combinations, asset retirement obligations, the MVNO agreement
    and the sale of software. In addition a tax income of NOK
    25 million was recorded for IFRS compared to N GAAP, see
    8) above.
|    
|(13) | Under N GAAP, dividends payable reduced shareholders
    equity for the year in which it related. Under IFRS, dividends
    payable is recorded as a reduction of shareholders equity
    in the year it is approved.                                                   
|    
|(14) | Minority interests for IFRS adjustments relate primarily to EDB
    Business Partner ASA.                                                                                                                                                                                 



F-105



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




| |                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | Reconciliation of shareholders equity for the Telenor
    Group from December 31, 2004 to January 1, 2005 due to
    the implementation of IAS 32 and 39

|                                             |  |      |     |                   |  |  |        |  
|-------------------------------------------- |  | ---- | --- | ----------------- |  |  | ------ | -
|                                             |  |      |     | Shareholders    
|                                             |  | Note |     | Equity           
|                                             |  |      |     |                  
|                                             |  |      |     | (NOK in millions)
|Shareholders equity December 31, 2004       |  |      |     |                   |  |  | 40,122 |  
|                                             |  |      |     |                   |  |  |        |  
|Derivative instruments at fair value         |  |      | (15 | )                 |  |  |        |  
| cash flow hedges                           |  |      |     |                   |  |  | 13     |  
| derivatives not qualifying as hedges       |  |      |     |                   |  |  | (289   | )
|Shares held-for-sale at estimated fair value |  |      | (16 | )                 |  |  | 753    |  
|Tax on the changes                           |  |      |     |                   |  |  | (16    | )
|Minoritys share                             |  |      |     |                   |  |  | (8     | )
|Total adjustments                            |  |      |     |                   |  |  | 453    |  
|                                             |  |      |     |                   |  |  |        |  
|Shareholders equity January 1, 2005         |  |      |     |                   |  |  | 40,575 |  
|                                             |  |      |     |                   |  |  |        |  



|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(15) | As of January 1, 2005, Telenor records all derivative
    instruments, as well as interest-bearing liabilities that
    qualify for hedge accounting, at fair value. As of
    January 1, 2005, interest rate derivatives used to manage
    the overall risk of Telenors debt portfolio do not qualify
    for hedge accounting according to IFRS. These derivatives are
    now being treated as stand-alone financial instruments at fair
    value and constituted the main part of the implementation
    effect. Gains or losses from fair value adjustments subsequent
    to January 1, 2005 are recorded to the income statement.



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Up to and including December 31, 2004, Telenor did not
    recognize changes in fair value of interest-bearing liabilities
    due to changes in interest rates. Correspondingly, for interest
    rate derivatives that qualified for hedge accounting, Telenor
    did not recognize unrealized changes in fair value due to
    changes in interest rates. From January 1, 2005,
    interest-bearing liabilities and derivatives designated as hedge
    objects and hedge instruments, respectively, for fair value
    hedges are presented gross in the balance sheet. Changes in fair
    value of both the hedged object (interest-bearing liabilities)
    and the hedge instrument (interest rate derivatives) are
    recorded to the income statement.
|
| |  | Up to and including December 31, 2004, gains and losses on
    foreign exchange contracts that were designated as hedges of
    firm commitments (cash flow hedges) were deferred and recognized
    in income at the same time as the related transactions, provided
    that the hedged transaction is eligible for hedge accounting.
    From January 1, 2005, such contracts are recorded in the
    balance sheet at fair value with changes in fair value through
    equity until the hedge transactions are made.                                                                                                                                                                                                                                          



|     |                                                                                                                                                                                                                                                                                                                                                                   
|---- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(16) | Up to and including December 31, 2004, shares
    available-for-sale were valued at the lower of cost and
    estimated fair value. From January 1, 2005, Telenor record
    shares available-for-sale at estimated fair value. Changes in
    the fair values of investments in shares are recorded in a
    separate component of equity until impaired or sold.



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
| |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | For financial instruments, the comparative figures for the
    profit and loss statements for 2004 are not restated to the
    principles in IAS 32 and 39. Equity as of December 31, 2004
    is reconciled to equity as of January 1, 2005. The nature
    of the main adjustments would have been the same for equity at
    other points of time in 2004. However, as of January 1,
    2004 the fair value adjustments for shares available-for-sale
    would have been significantly higher, as it would have included
    the listed companies Cosmote, New Skies and Q Free ASA. Cosmote
    and New Skies were sold in 2004. The fair value adjustments of
    listed shares as of January 1, 2004 would have been NOK
    1,676 million after taxes, of which Cosmote was NOK
    1,598 million. The nature of the main adjustments on the
    profit and loss statement and on the balance sheet items would
    have been as described above.

F-106



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Cash flow statement




Balance sheet














38.     UNITED STATES GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES (US GAAP)




F-107



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




Reconciliation of net income from IFRS to US GAAP


|                                                     |                                                         |      |    |                          |  |      |        |      |  |  |        |      | 
|---------------------------------------------------- | ------------------------------------------------------- | ---- | -- | ------------------------ |  | ---- | ------ | ---- |  |  | ------ | ---- | 
|                                                     |                                                         | Note |    | 2004                     |  | 2005
|                                                     |                                                         |      |    |                          |  |     
|                                                     |                                                         |      |    | (NOK in millions, except
|                                                     |                                                         |      |    | per share amounts)      
|Net income in accordance with IFRS                   |                                                         |      |    |                          |  |      | 6,093  |      |  |  | 7,646  |     
|Adjustments for US GAAP:                             |                                                         |      |    |                          |  |      |        |      |  |  |        |     
|Pensions                                             |                                                         |      | 1  |                          |  |      | (140   | )    |  |  | (312   | )   
|Stock based compensation                             |                                                         |      | 4  |                          |  |      | (35    | )    |  |  | (37    | )   
|Sale and lease back of properties                    |                                                         |      | 5  |                          |  |      | 10     |      |  |  | (39    | )   
|Derivative financial instruments (net of tax)        |                                                         |      | 6  |                          |  |      | (58    | )    |  |  | (129   | )   
|Goodwill                                             |                                                         |      | 7  |                          |  |      | (22    | )    |  |  | (112   | )   
|Negative goodwill and impairment                     |                                                         |      | 8  |                          |  |      |       |      |  |  | 288    |     
|Reversal of IFRS impairment and impact on disposal   |                                                         |      | 9  |                          |  |      | 58     |      |  |  | (106   | )   
|Subsequent acquisitions: amortization of fair values |                                                         |      | 10 |                          |  |      | (100   | )    |  |  | 122    |     
|Translation difference sold business                 |                                                         |      | 16 |                          |  |      | (14    | )    |  |  | 29     |     
|Sale of business with extension of service contract  |                                                         |      | 14 |                          |  |      | (256   | )    |  |  | 40     |     
|Lease arrangements                                   |                                                         |      | 17 |                          |  |      |       |      |  |  | (152   | )   
|Provisions                                           |                                                         |      | 18 |                          |  |      |       |      |  |  | 175    |     
|Other differences                                    |                                                         |      |    |                          |  |      | (117   | )    |  |  | (26    | )   
|Tax effect of US GAAP adjustments                    |                                                         |      | 11 |                          |  |      | 114    |      |  |  | 62     |     
|Minority interests                                   |                                                         |      |    |                          |  |      | 106    |      |  |  | (22    | )   
|                                                     |                                                         |      |    |                          |  |      |        |      |  |  |        |     
|Net income in accordance with US GAAP                |                                                         |      |    |                          |  |      | 5,639  |      |  |  | 7,427  |     
|                                                     |                                                         |      |    |                          |  |      |        |      |  |  |        |     
|Earnings per share in NOK in accordance with US GAAP |                                                         |      |    |                          |  |      |        |      |  |  |        |     
|                                                     |  Basic earnings per share in accordance with US GAAP   |      |    |                          |  |      |        | 3.22 |  |  |        | 4.34 | 
|                                                     |  Diluted earnings per share in accordance with US GAAP |      |    |                          |  |      |        | 3.22 |  |  |        | 4.34 | 
|Revenues in accordance with US GAAP                  |                                                         |      | 19 |                          |  |      | 67,801 |      |  |  | 70,352 |     
|Operating profit in accordance with US GAAP          |                                                         |      |    |                          |  |      | 6,422  |      |  |  | 11,805 |     
|Profit before taxes and minority interests           |                                                         |      |    |                          |  |      | 9,303  |      |  |  | 12,466 |     
|Loss from discontinued operations                    |                                                         |      |    |                          |  |      |       |      |  |  | (4     | )   
|Taxes in accordance with US GAAP                     |                                                         |      |    |                          |  |      | (2,658 | )    |  |  | (3,492 | )   
|Minority interest in accordance with US GAAP         |                                                         |      |    |                          |  |      | (1,006 | )    |  |  | (1,543 | )   

F-108



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Reconciliation of shareholders equity from IFRS to
US GAAP


|                                                                     |  |      |     |                   |  |      |         |   |  |  |         |  
|-------------------------------------------------------------------- |  | ---- | --- | ----------------- |  | ---- | ------- | - |  |  | ------- | -
|                                                                     |  | Note |     | 2004              |  | 2005
|                                                                     |  |      |     |                   |  |     
|                                                                     |  |      |     | (NOK in millions)
|Shareholders equity in accordance with IFRS                         |  |      |     |                   |  |      | 40,122  |   |  |  | 46,399  |  
|Adjustments for US GAAP:                                             |  |      |     |                   |  |      |         |   |  |  |         |  
|Pensions                                                             |  |      | 1   |                   |  |      | 1,760   |   |  |  | 1,448   |  
|Subsidiarys equity transactions                                     |  |      | 2   |                   |  |      | 700     |   |  |  | 700     |  
|Equity securities  net of tax                                       |  |      | 3   |                   |  |      | 15      |   |  |  | (20     | )
|Stock based compensation                                             |  |      | 4   |                   |  |      | (268    | ) |  |  | (305    | )
|Sale and lease back of properties                                    |  |      | 5   |                   |  |      | (61     | ) |  |  | (100    | )
|Derivative financial instruments                                     |  |      | 6   |                   |  |      | (298    | ) |  |  |        |  
|Goodwill                                                             |  |      | 6,7 |                   |  |      | 2,882   |   |  |  | 2,619   |  
|Negative goodwill                                                    |  |      | 8   |                   |  |      | (309    | ) |  |  |        |  
|Reversal of impairment                                               |  |      | 9   |                   |  |      | (102    | ) |  |  | (208    | )
|Subsequent acquisitions: amortization of fair value                  |  |      | 10  |                   |  |      | (820    | ) |  |  | (1,877  | )
|Sale of business with extension of service contract                  |  |      | 14  |                   |  |      | (256    | ) |  |  | (216    | )
|Translation differences                                              |  |      | 16  |                   |  |      | 86      |   |  |  | 5       |  
|Lease arrangements                                                   |  |      | 17  |                   |  |      |        |   |  |  | (152    | )
|Provisions                                                           |  |      | 18  |                   |  |      |        |   |  |  | 175     |  
|Other differences                                                    |  |      |     |                   |  |      | 123     |   |  |  | 92      |  
|Tax effect of US GAAP adjustments                                    |  |      | 11  |                   |  |      | (459    | ) |  |  | (397    | )
|Minority interests                                                   |  |      | 2   |                   |  |      | (685    | ) |  |  | (706    | )
|Shareholders equity in accordance with US GAAP                      |  |      |     |                   |  |      | 42,430  |   |  |  | 47,457  |  
|Total non-current assets in accordance with US GAAP                  |  |      |     |                   |  |      | 84,180  |   |  |  | 106,042 |  
|Current assets in accordance with US GAAP                            |  |      |     |                   |  |      | 16,991  |   |  |  | 25,342  |  
|Total assets in accordance with US GAAP                              |  |      |     |                   |  |      | 101,171 |   |  |  | 131,384 |  
|Non-current liabilities and provision in accordance with
    US GAAP |  |      |     |                   |  |      | 34,882  |   |  |  | 38,643  |  
|Current liabilities in accordance with US GAAP                       |  |      |     |                   |  |      | 19,438  |   |  |  | 37,315  |  
|Minority interest in accordance with US GAAP                         |  |      |     |                   |  |      | 4,759   |   |  |  | 7,969   |  

F-109



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


The following table reconcile the difference between
long-term liabilities and provisions under IFRS compared to
US GAAP


|                                                                              |  |      |    |                   |      |  |        |      |  |  |        |  
|----------------------------------------------------------------------------- |  | ---- | -- | ----------------- | ---- |  | ------ | ---- |  |  | ------ | -
|                                                                              |  | Note |    |                   | 2004 |  |        | 2005 | 
|                                                                              |  |      |    |                   |      |  |        |      | 
|                                                                              |  |      |    | (NOK in millions) |     
|Non-current liabilities and provision under IFRS                              |  |      |    |                   |      |  | 26,655 |      |  |  | 33,756 |  
|Pensions                                                                      |  |      | 1  |                   |      |  | (1,713 | )    |  |  | (1,371 | )
|Cross Boarder QTE Lease                                                       |  |      | 12 |                   |      |  | 5,469  |      |  |  | 6,266  |  
|Derivative financial instruments                                              |  |      | 6  |                   |      |  | 2,787  |      |  |  |       |  
|Connection fee                                                                |  |      |    |                   |      |  | 1,434  |      |  |  |        |  
|Sale of business with extension of service contract                           |  |      | 14 |                   |      |  | 256    |      |  |  | 216    |  
|Deferred tax on minority share of excess value recorded net
    under US GAAP |  |      | 9  |                   |      |  | (84    | )    |  |  |       |  
|Sale and leaseback of properties                                              |  |      | 5  |                   |      |  | 61     |      |  |  | 100    |  
|Other differences                                                             |  |      |    |                   |      |  | 12     |      |  |  | (328   | )
|Consolidation of variable interest entities                                   |  |      | 13 |                   |      |  | 5      |      |  |  | 4      |  
|                                                                              |  |      |    |                   |      |  |        |      | 
|Non-current liabilities and provisions under US GAAP                          |  |      |    |                   |      |  | 34,882 |      |  |  | 38,643 |  
|                                                                              |  |      |    |                   |      |  |        |      | 

The following table reflects the components of comprehensive
income (loss) under US GAAP




|                                     |  |                   |        |   |      |  |     |     |  |  |        |   |  |     |       |   |     |  |     |   |  |  |       |  
|------------------------------------ |  | ----------------- | ------ | - | ---- |  | --- | --- |  |  | ------ | - |  | --- | ----- | - | --- |  | --- | - |  |  | ----- | -
|                                     |  | 2004              |        |   | 2005 | 
|                                     |  |                   |        |   |      | 
|                                     |  | Pretax            |        |   | Tax  |  |     | Net |  |  | Pretax |   |  | Tax |       |   | Net | 
|                                     |  |                   |        |   |      |  |     |     |  |  |        |   |  |     |       |   |     | 
|                                     |  | (NOK in millions) |       
|Unrealized gain (loss) on securities |  |                   | (2,311 | ) |      |  | 647 |     |  |  | (1,664 | ) |  |     | 1,762 |   |     |  |    |   |  |  | 1,762 |  
|Net investment hedge                 |  |                   | (751   | ) |      |  | 151 |     |  |  | (600   | ) |  |     | (4    | ) |     |  | 85  |   |  |  | 81    |  
|Minimum pension liability            |  |                   | 113    |   |      |  | (32 | )   |  |  | 81     |   |  |     |      |   |     |  |    |   |  |  |      |  
|Foreign currency translation         |  |                   | 92     |   |      |  | 9   |     |  |  | 101    |   |  |     | 737   |   |     |  | (97 | ) |  |  | 640   |  
|Cash flow hedge                      |  |                   |        |   |      |  |     |     |  |  |        |   |  |     | (252  | ) |     |  | 70  |   |  |  | (182  | )
|Other comprehensive income           |  |                   | (2,857 | ) |      |  | 775 |     |  |  | (2,082 | ) |  |     | 2,243 |   |     |  | 58  |   |  |  | 2,301 |  



Reconciliation


|                                      |  |                   |        |   |      |  |       | 
|------------------------------------- |  | ----------------- | ------ | - | ---- |  | ----- | 
|                                      |  | 2004              |        |   | 2005 | 
|                                      |  |                   |        |   |      | 
|                                      |  | (NOK in millions) |       
|Net income in accordance with US GAAP |  |                   | 5,639  |   |      |  | 7,427 | 
|Other comprehensive income (loss)     |  |                   | (2,082 | ) |      |  | 2,301 | 
|                                      |  |                   |        |   |      | 
|Total comprehensive income            |  |                   | 3,557  |   |      |  | 9,728 | 
|                                      |  |                   |        |   |      | 

F-110



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Components of equity in accordance with US GAAP:


|                                       |                                 |                   |        |              |   |  |        |        |  
|-------------------------------------- | ------------------------------- | ----------------- | ------ | ------------ | - |  | ------ | ------ | -
|                                       |                                 | December 31,      |        | December 31,
|                                       |                                 | 2004              |        | 2005        
|                                       |                                 |                   |        |             
|                                       |                                 | (NOK in millions)
|Share capital                          |                                 |                   | 10,498 |              |   |  | 10,239 |       
|Other paid capital                     |                                 |                   | 17,539 |              |   |  | 15,618 |       
|Other equity                           |                                 |                   | 17,580 |              |   |  | 22,499 |       
|Treasury shares                        |                                 |                   | (687   | )            |   |  | (700   | )     
|Accumulated other comprehensive income |                                 |                   |        |              |   |  |        |       
|                                       |  unrealized gain on securities |                   |        | 15           |   |  |        | 1,777  |  
|                                       |  net investment hedge          |                   |        | 2,655        |   |  |        | 2,651  |  
|                                       |  foreign currency adjustments  |                   |        | (4,466       | ) |  |        | (3,729 | )
|                                       |  cash flow hedge               |                   |        |             |   |  |        | (252   | )
|                                       |  deferred taxes                |                   |        | (704         | ) |  |        | (646   | )
|                                       |                                 |                   |        |              |   |  |        |       
|Total                                  |                                 |                   | 42,430 |              |   |  | 47,457 |       
|                                       |                                 |                   |        |              |   |  |        |       



|    |         
|--- | --------
|(1) | Pensions









F-111



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group








|                                                                 |  |      |     |         |  |      |     |         |  |  |     |  |  |  |     | 
|---------------------------------------------------------------- |  | ---- | --- | ------- |  | ---- | --- | ------- |  |  | --- |  |  |  | --- | 
|                                                                 |  | 2004 |     | 2005   
|                                                                 |  |      |     |        
|Assumptions used to determine benefit obligations at December 31 |  | IFRS |     | US GAAP |  | IFRS |     | US GAAP
|                                                                 |  |      |     |         |  |      |     |        
|Discount rate in %                                               |  |      | 4.5 |         |  |      | 5.0 |         |  |  | 3.9 |  |  |  | 3.9 | 
|Rate of compensation increase in %                               |  |      | 3.0 |         |  |      | 3.0 |         |  |  | 3.0 |  |  |  | 3.0 | 
|Expected increase in the social security base amount in %        |  |      | 3.0 |         |  |      | 3.0 |         |  |  | 3.0 |  |  |  | 3.0 | 
|Expected turnover in %                                           |  |      | 6   |         |  |      | 6   |         |  |  | 10  |  |  |  | 10  | 
|Expected average remaining service period in years               |  |      | 12  |         |  |      | 12  |         |  |  | 9   |  |  |  | 9   | 
|Annual adjustments to pensions in %                              |  |      | 3.0 |         |  |      | 3.0 |         |  |  | 2.5 |  |  |  | 2.5 | 



|                                                 |               |                   |       |              |  |  |       |   | 
|------------------------------------------------ | ------------- | ----------------- | ----- | ------------ |  |  | ----- | - | 
|                                                 |               | December 31,      |       | December 31,
|                                                 |               | 2004              |       | 2005        
|                                                 |               |                   |       |             
|                                                 |               | (NOK in millions)
|Benefit obligations at the end of the year       |               |                   | 5,333 |              |  |  | 5,795 |  
|Fair value of plan assets at the end of the year |               |                   | 3,811 |              |  |  | 3,896 |  
|Funded status                                    |               |                   | 1,522 |              |  |  | 1,899 |  
|Unrecognized prior service costs                 |               |                   | (10   | )            |  |  | 52    |  
|Unrecognized net obligation at transition        |               |                   | (67   | )            |  |  | (45   | )
|Unrecognized net actuarial gains (losses)(1)     |               |                   | (983  | )            |  |  | (999  | )
|Total provision for pensions                     |               |                   | 462   |              |  |  | 907   |  
|                                                 | Presented as: |                   |       |              |  |  |       |   | 
|Benefit obligation                               |               |                   | 531   |              |  |  | 984   |  
|Plan assets                                      |               |                   | (22   | )            |  |  |      |  
|Intangible assets                                |               |                   | (47   | )            |  |  | (77   | )

|                                             |  |                   |      |              |  |  |      |  
|-------------------------------------------- |  | ----------------- | ---- | ------------ |  |  | ---- | -
|                                             |  | December 31,      |      | December 31,
|                                             |  | 2004              |      | 2005        
|Total pension costs under US GAAP            |  |                   |      |             
|                                             |  | (NOK in millions)
|Service cost                                 |  |                   | 482  |              |  |  | 535  |  
|Interest cost                                |  |                   | 263  |              |  |  | 263  |  
|Expected return on plan assets               |  |                   | (189 | )            |  |  | (187 | )
|Losses/gains on curtailments and settlements |  |                   | 16   |              |  |  | (1   | )
|Amortization of actuarial gains and losses   |  |                   | 124  |              |  |  | 128  |  
|Amortization of unrecognized net obligation  |  |                   | 25   |              |  |  | 22   |  
|                                             |  |                   |      |              |  |  |      |  
|Net periodic benefit plans                   |  |                   | 721  |              |  |  | 760  |  
|                                             |  |                   |      |              |  |  |      |  
|Contribution plan costs                      |  |                   | 141  |              |  |  | 180  |  
|                                             |  |                   |      |              |  |  |      |  
|Total pension costs                          |  |                   | 862  |              |  |  | 940  |  
|                                             |  |                   |      |              |  |  |      |  

F-112



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                                  
|--- | ---------------------------------
|(2) | Subsidiaries equity transactions







|    |                  
|--- | -----------------
|(3) | Equity securities









|    |                                    
|--- | -----------------------------------
|(4) | Equity-settled share-based payments









F-113



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                                                                                          |  |                 |       |   |      |  |       |  
|--------------------------------------------------------------------------------------------------------- |  | --------------- | ----- | - | ---- |  | ----- | -
|                                                                                                          |  | 2004            |       |   | 2005 | 
|                                                                                                          |  |                 |       |   |      | 
|                                                                                                          |  | (NOK in         |      
|                                                                                                          |  | millions except |      
|                                                                                                          |  | per share       |      
|                                                                                                          |  | amounts)        |      
|Net income as reported in accordance with US GAAP                                                         |  |                 | 5,639 |   |      |  | 7,427 |  
|Deduct stock based employee compensation expense included in
    reported net income                      |  |                 | 75    |   |      |  | 33    |  
|Add stock based employee compensation expense determined under
    fair value based method for all awards |  |                 | (15   | ) |      |  | (14   | )
|                                                                                                          |  |                 |       |   |      | 
|Pro forma net income in accordance with US GAAP                                                           |  |                 | 5,699 |   |      |  | 7,446 |  
|                                                                                                          |  |                 |       |   |      | 
|Earnings per share in accordance with US GAAP                                                             |  |                 |       |   |      |  |       |  
|Basic earnings per share as reported in accordance with
    US GAAP                                       |  |                 | 3.22  |   |      |  | 4.34  |  
|Basic pro forma earnings per share in accordance with
    US GAAP                                         |  |                 | 3.26  |   |      |  | 4.35  |  
|Diluted earnings per share as reported in accordance with
    US GAAP                                     |  |                 | 3.22  |   |      |  | 4.34  |  
|Diluted pro forma earnings per share in accordance with
    US GAAP                                       |  |                 | 3.26  |   |      |  | 4.35  |  





|    |                                  
|--- | ---------------------------------
|(5) | Sale and lease back of properties







|    |                                 
|--- | --------------------------------
|(6) | Derivative financial instruments



Cash flow hedges






F-114



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|    |                                                                   
|--- | ------------------------------------------------------------------
|(7) | Intangibles and goodwill including amortization and
    impairment







| |   |                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | the different timing for discontinuing amortization of
    goodwill, and                                                                                      
|
| |  | the differences in historical impairments arising from the
    two-step methodology for impairment testing in US GAAP compared
    to IFRS as described below.







Intangible assets


|                                       |  |                   |        |             |  |             |        |             |  |              |      |             |  |          |      |              |  |              |        |              |  |  |         |   |  |  |        |   |  |  |         |   |  |  |        |  |  |  |        | 
|-------------------------------------- |  | ----------------- | ------ | ----------- |  | ----------- | ------ | ----------- |  | ------------ | ---- | ----------- |  | -------- | ---- | ------------ |  | ------------ | ------ | ------------ |  |  | ------- | - |  |  | ------ | - |  |  | ------- | - |  |  | ------ |  |  |  | ------ | 
|                                       |  | Accumulated Cost  |        |             |  |             |        |             |  |              |      |            
|                                       |  |                   |        | Accumulated |  |             |        | Accumulated |  |              |      |            
|                                       |  |                   |        | Exchange    |  |             |        | amortiza-   |  |              |      | amortiza-   |  |          |      |             
|                                       |  |                   |        | differences |  |             |        | tions and   |  | Amortiza-    |      | tions and   |  |          |      |             
|                                       |  |                   |        | and         |  |             |        | write-downs |  | tions and    |      | write-downs |  | Carrying |      | Carrying    
|                                       |  | Cost as of        |        |             |  | reclassifi- |        |             |  | Cost as of   |      | as of       |  | write-   |      | as of        |  | amount as of |        | amount as of
|                                       |  | January 1,        |        | Additions   |  | cations     |        | Disposals   |  | December 31, |      | January 1,  |  | downs    |      | December 31, |  | December 31, |        | December 31,
|                                       |  | 2005              |        | 2005        |  | 2005        |        | 2005        |  | 2005         |      | 2005        |  | 2005     |      | 2005         |  | 2005         |        | 2005        
|                                       |  |                   |        |             |  |             |        |             |  |              |      |             |  |          |      |              |  |              |        |             
|                                       |  | (NOK in millions)
|Goodwill                               |  |                   | 21,381 |             |  |             | 8,157  |             |  |              | (281 | )           |  |          | (153 | )            |  |              | 29,104 |              |  |  | (5,257  | ) |  |  | 29     |   |  |  | (5,228  | ) |  |  | 23,874 |  |  |  | 16,124 | 
|Intangible assets                      |  |                   |        |             |  |             |        |             |  |              |      |             |  |          |      |              |  |              |        |              |  |  |         |   |  |  |        |   |  |  |         |   |  |  |        |  |  |  |        | 
|Customer base                          |  |                   | 4,511  |             |  |             | 971    |             |  |              | (164 | )           |  |          | (9   | )            |  |              | 5,309  |              |  |  | (1,891  | ) |  |  | (1,125 | ) |  |  | (3,016  | ) |  |  | 2,293  |  |  |  | 2,620  | 
|Licenses                               |  |                   | 4,506  |             |  |             | 595    |             |  |              | 199  |             |  |          | (23  | )            |  |              | 5,277  |              |  |  | (1,293  | ) |  |  | (238   | ) |  |  | (1,531  | ) |  |  | 3,746  |  |  |  | 3,213  | 
|Trade marks                            |  |                   | 1,014  |             |  |             | 536    |             |  |              | (17  | )           |  |          |      |              |  |              | 1,533  |              |  |  | (200    | ) |  |  | (96    | ) |  |  | (296    | ) |  |  | 1,237  |  |  |  | 814    | 
|Other                                  |  |                   | 7,985  |             |  |             | 2,462  |             |  |              | 81   |             |  |          | (136 | )            |  |              | 10,392 |              |  |  | (5,220  | ) |  |  | (1,608 | ) |  |  | (6,828  | ) |  |  | 3,564  |  |  |  | 2,765  | 
|Work in progress                       |  |                   | 422    |             |  |             | 286    |             |  |              | (1   | )           |  |          |     |              |  |              | 707    |              |  |  |        |   |  |  |       |   |  |  |        |   |  |  | 707    |  |  |  | 422    | 
|                                       |  |                   |        |             |  |             |        |             |  |              |      |             |  |          |      |              |  |              |        |              |  |  |         |   |  |  |        |   |  |  |         |   |  |  |        |  |  |  |        | 
|Intangible assets (excluding goodwill) |  |                   | 18,438 |             |  |             | 4,850  |             |  |              | 98   |             |  |          | (168 | )            |  |              | 23,218 |              |  |  | (8,604  | ) |  |  | (3,067 | ) |  |  | (11,671 | ) |  |  | 11,547 |  |  |  | 9,834  | 
|                                       |  |                   |        |             |  |             |        |             |  |              |      |             |  |          |      |              |  |              |        |              |  |  |         |   |  |  |        |   |  |  |         |   |  |  |        |  |  |  |        | 
|Total intangible assets                |  |                   | 39,819 |             |  |             | 13,007 |             |  |              | (185 | )           |  |          | (321 | )            |  |              | 52,320 |              |  |  | (13,861 | ) |  |  | (3,038 | ) |  |  | (16,899 | ) |  |  | 35,421 |  |  |  | 25,958 | 
|                                       |  |                   |        |             |  |             |        |             |  |              |      |             |  |          |      |              |  |              |        |              |  |  |         |   |  |  |        |   |  |  |         |   |  |  |        |  |  |  |        | 

F-115



---



##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group


Changes in the carrying value of goodwill for the years ended
December 31, 2004 and 2005:


|                                                                           |  |                   |        |         |  |          |       |          |  |        |     |       |  |           |     |              |  |         |       |   |  |  |       |   |  |  |       |   |  |  |       |   |  |  |        |  
|-------------------------------------------------------------------------- |  | ----------------- | ------ | ------- |  | -------- | ----- | -------- |  | ------ | --- | ----- |  | --------- | --- | ------------ |  | ------- | ----- | - |  |  | ----- | - |  |  | ----- | - |  |  | ----- | - |  |  | ------ | -
|                                                                           |  |                   |        |         |  |          |       |          |  |        |     |       |  |           |     |              |  | Total  
|                                                                           |  | Sonofon           |        | Pannon  |  | DiGi.Com |       | Kyivstar |  | Other  |     |       |  |           |     | Other/       |  | Telenor
|                                                                           |  | Denmark           |        | Hungary |  | Malaysia |       | Ukraine  |  | Mobile |     | Fixed |  | Broadcast |     | Eliminations |  | Group  
|                                                                           |  |                   |        |         |  |          |       |          |  |        |     |       |  |           |     |              |  |        
|                                                                           |  | (NOK in millions)
|As of January 1, 2004                                                      |  |                   |       |         |  |          | 5,623 |          |  |        | 744 |       |  |           | 347 |              |  |         |      |   |  |  |      |   |  |  | 3,029 |   |  |  | 2,287 |   |  |  | 12,030 |  
|                                                                           |  |                   |        |         |  |          |       |          |  |        |     |       |  |           |     |              |  |         |       |   |  |  |       |   |  |  |       |   |  |  |       |   |  |  |        |  
|Exchange differences                                                       |  |                   | (421   | )       |  |          | 227   |          |  |        | (71 | )     |  |           | (36 | )            |  |         | (2    | ) |  |  | 13    |   |  |  | 19    |   |  |  | 68    |   |  |  | (203   | )
|Arising on acquisition of subsidiaries                                     |  |                   | 6,792  |         |  |          |      |          |  |        |    |       |  |           | 4   |              |  |         | 104   |   |  |  | 25    |   |  |  | (23   | ) |  |  | 459   |   |  |  | 7,361  |  
|Eliminated on disposal of subsidiaries                                     |  |                   |       |         |  |          |      |          |  |        |    |       |  |           |    |              |  |         |      |   |  |  |      |   |  |  |      |   |  |  | (111  | ) |  |  | (111   | )
|Amortisation and impairment                                                |  |                   | (2,902 | )       |  |          |      |          |  |        |    |       |  |           |    |              |  |         |      |   |  |  |      |   |  |  |      |   |  |  | (4    | ) |  |  | (2,906 | )
|Previously not recognized deferred tax assets in business
    combinations |  |                   |       |         |  |          |      |          |  |        |    |       |  |           |    |              |  |         |      |   |  |  | (23   | ) |  |  | (24   | ) |  |  |      |   |  |  | (47    | )
|                                                                           |  |                   |        |         |  |          |       |          |  |        |     |       |  |           |     |              |  |         |       |   |  |  |       |   |  |  |       |   |  |  |       |   |  |  |        |  
|As of December 31, 2004                                                    |  |                   | 3,469  |         |  |          | 5,850 |          |  |        | 673 |       |  |           | 315 |              |  |         | 102   |   |  |  | 15    |   |  |  | 3,001 |   |  |  | 2,699 |   |  |  | 16,124 |  
|                                                                           |  |                   |        |         |  |          |       |          |  |        |     |       |  |           |     |              |  |         |       |   |  |  |       |   |  |  |       |   |  |  |       |   |  |  |        |  
|Exchange differences                                                       |  |                   | (116   | )       |  |          | (335  | )        |  |        | 86  |       |  |           | 56  |              |  |         | 52    |   |  |  | 68    |   |  |  | (14   | ) |  |  | (5    | ) |  |  | (208   | )
|Arising on acquisition of subsidiaries                                     |  |                   | 1      |         |  |          |      |          |  |        |    |       |  |           |    |              |  |         | 2,544 |   |  |  | 5,556 |   |  |  | 4     |   |  |  | 52    |   |  |  | 8,157  |  
|Eliminated on disposal of subsidiaries                                     |  |                   |       |         |  |          |      |          |  |        |    |       |  |           |    |              |  |         |      |   |  |  | (43   | ) |  |  |      |   |  |  | (110  | ) |  |  | (153   | )
|Amortization and impairment                                                |  |                   |       |         |  |          |      |          |  |        |    |       |  |           |    |              |  |         |      |   |  |  | 36    |   |  |  |      |   |  |  | (7    | ) |  |  | 29     |  
|Previously not recognized deferred tax assets in business
    combinations |  |                   |       |         |  |          |      |          |  |        |    |       |  |           |    |              |  |         |      |   |  |  |      |   |  |  | (75   | ) |  |  |      |   |  |  | (75    | )
|                                                                           |  |                   |        |         |  |          |       |          |  |        |     |       |  |           |     |              |  |         |       |   |  |  |       |   |  |  |       |   |  |  |       |   |  |  |        |  
|As of December 31, 2005                                                    |  |                   | 3,354  |         |  |          | 5,515 |          |  |        | 759 |       |  |           | 371 |              |  |         | 2,698 |   |  |  | 5,632 |   |  |  | 2,916 |   |  |  | 2,629 |   |  |  | 23,874 |  
|                                                                           |  |                   |        |         |  |          |       |          |  |        |     |       |  |           |     |              |  |         |       |   |  |  |       |   |  |  |       |   |  |  |       |   |  |  |        |  



|    |                                 
|--- | --------------------------------
|(8) | Negative goodwill and impairment







|    |                                               
|--- | ----------------------------------------------
|(9) | Reversal of impairment and impact on disposals









|     |                                                                                                  
|---- | -------------------------------------------------------------------------------------------------
|(10) | Subsequent acquisitions of ownership interest in subsidiaries
    and amortization of fair values



F-116



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group










|     |      
|---- | -----
|(11) | Taxes





|     |                        
|---- | -----------------------
|(12) | Cross border QTE leases







F-117



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|                                       |  |                   |        | 
|-------------------------------------- |  | ----------------- | ------ | 
|                                       |  | As of             |       
|                                       |  | December 31,      |       
|                                       |  | 2005              |       
|                                       |  |                   |       
|                                       |  | (NOK in millions) |       
|2006                                   |  |                   | 953    | 
|2007                                   |  |                   | 897    | 
|2008                                   |  |                   | 1,039  | 
|2009                                   |  |                   | 930    | 
|Later years through 2016               |  |                   | 6,194  | 
|Total future minimum lease payments    |  |                   | 10,011 | 
|Less amount representing interest      |  |                   | 1,599  | 
|Finance lease obligation under US GAAP |  |                   | 8,412  | 
|Finance lease obligation under IFRS    |  |                   | 1,838  | 
|Deferred gain (both IFRS and US GAAP)  |  |                   | 308    | 



|                     |  |                   |       |  |      |  |       | 
|-------------------- |  | ----------------- | ----- |  | ---- |  | ----- | 
|                     |  | 2004              |       |  | 2005 | 
|                     |  |                   |       |  |      | 
|                     |  | (NOK in millions) |      
|Telephony switches   |  |                   | 52    |  |      |  | 12    | 
|GSM mobile network   |  |                   | 135   |  |      |  | 55    | 
|Fixed-line network   |  |                   | 804   |  |      |  | 542   | 
|Fiber optic Networks |  |                   |      |  |      |  | 475   | 
|Satellites           |  |                   | 501   |  |      |  | 518   | 
|Set top boxes        |  |                   | 110   |  |      |  |      | 
|Buildings            |  |                   | 189   |  |      |  | 187   | 
|Other                |  |                   | 36    |  |      |  |      | 
|                     |  |                   |       |  |      | 
|Total                |  |                   | 1,827 |  |      |  | 1,789 | 
|                     |  |                   |       |  |      | 



|     |                                            
|---- | -------------------------------------------
|(13) | Consolidation of variable interest entities





F-118



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group














|     |                                                    
|---- | ---------------------------------------------------
|(14) | Sale of business with extension of service contract





F-119



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|     |                                                   
|---- | --------------------------------------------------
|(15) | Non-consolidated investees  100 percent
    basis



|                                          |  |                   |        |      |  |  |        | 
|----------------------------------------- |  | ----------------- | ------ | ---- |  |  | ------ | 
|                                          |  | 2004              |        | 2005
|                                          |  |                   |        |     
|                                          |  | (NOK in millions)
|Income Statement Data                     |  |                   |        |      |  |  |        | 
|Revenues                                  |  |                   | 41,643 |      |  |  | 42,336 | 
|Operating Profit                          |  |                   | 6,800  |      |  |  | 7,383  | 
|Income before taxes and minority interest |  |                   | 5,094  |      |  |  | 6,737  | 
|Net income                                |  |                   | 6,341  |      |  |  | 4,513  | 
|Balance Sheet Data                        |  |                   |        |      |  |  |        | 
|Total non-current assets                  |  |                   | 49,007 |      |  |  | 47,651 | 
|Total current assets                      |  |                   | 13,494 |      |  |  | 11,791 | 
|Total assets                              |  |                   | 62,501 |      |  |  | 59,443 | 
|Shareholders equity                      |  |                   | 24,516 |      |  |  | 25,215 | 
|Minority interests                        |  |                   | 428    |      |  |  | 1,478  | 
|Total non-current liabilities             |  |                   | 21,095 |      |  |  | 23,373 | 
|Total current liabilities                 |  |                   | 16,462 |      |  |  | 9,377  | 
|Total equity and liabilities              |  |                   | 62,501 |      |  |  | 59,443 | 



|     |                                   
|---- | ----------------------------------
|(16) | Cumulative translation differences







|     |                   
|---- | ------------------
|(17) | Lease arrangements





F-120



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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL
STATEMENT  (Continued)


Telenor Group




|     |           
|---- | ----------
|(18) | Provisions







|     |                    
|---- | -------------------
|(19) | Revenue recognition





New US Accounting Standards


SFAS 123 (Revised 2004)


Share-Based Payment Accounting for Stock-Based
Compensation. Accounting for Stock Issued to Employees Statement of Cash Flows.


requires


F-121