Telenor and Alphabet's Google Cloud have created a cooperation to digitalize Telenor's worldwide operations, and the two businesses are investigating methods to jointly offer services to consumers, according to a joint statement released on Monday.
According to their respective chief executives, the companies will not only employ Google Cloud's services to strengthen Telenor's own IT and network, but will also collaborate to deliver digital tools to Telenor's consumers. Telenor, established in Oslo, has 172 million users and generates around half of its income in Asia and half in the Nordics. Telenor's CEO, Sigve Brekke, stated that the digitisation initiative would be a major transition for the company, but it is also part of its goal to discover new revenue sources.
"I believe telecoms' future is to go beyond connection and generate value on top of connecting consumers," he added. Telenor wants to establish a cloud-based company as networks become more reliant on software, and Google's capabilities in data management, machine learning, and artificial intelligence make it a strong fit, according to Brekke. "By digitizing our operation, we can make it run more smoothly," Brekke explained. "You can detect failures before they happen... you can smooth out client experiences and make them better when you're relocating some of your backend activities."
According to Thomas Kurian, CEO of Google Cloud, "digitalizing the fundamental operations of a telecoms firm as large as Telenor is novel to Google Cloud, as are the combined customer offers." One of the first services the two companies want to offer together is a platform to assist small and medium-sized businesses (SMEs) in transitioning to digital operations. "It's not only about optimizing data centers and migrating them to the cloud," Kurian explained. "The work we're doing with SMEs...we're establishing a collaborative offering to a client sector, not simply as a technology supplier."