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2009/03/13

Criticism to Telenor

Criticism to Telenor
Norwegian Internet Exchange
In June 2007 Telenor announced that it would withdraw from the Norwegian Internet Exchange(NIX). It would allow other internet service providers to connect to Telenor's own exchange point, but wants to be able to charge content providers, like NRK or Schibsted, for prioritised access to their network. The Norwegian Post and Telecommunications Authority stated they would look at the legality of this move, but concluded that the withdrawal from NIX would not negatively affect the Norwegian Internet infrastructure. This raised demands that the network division be demerged from Telenor and made a separate company. Critics feel that this move compromises the network neutrality of Norway,especially since Telenor has a 57% market share domestically. Telenor chose not to fulfill their threats, and continue to connect to NIX through a ten gigabit ethernetconnection.
Grameen Bank gentlemen's agreement
After Muhammad Yunus was awarded the Nobel Peace Prize in 2006, he claimed during his visit in Norway to receive the prize that Grameen Bank had a gentlemen's agreement with Telenor where Telenor was to sell part of GrameenPhone to the bank. Telenor was not interested in fulfilling this agreement, arguing it was not juridically binding.
Illegal VoIP Operations
Telenor's subsidiary Grameenphone was fined multiple times and later sued because they participated in illegal VOIP operations. VOIP operations went against the BTRC's (Bangladesh Telecommunication Regulatory Commission ) rules and as a result Grameenphone's offices were also raided in the process. BTRC claimed that the regulator and government was denied large revenue which Telenor/Grameenphone earned through these activities. Shortly after, Grameenphone's profits fell 32% when BTRC forced Grameenphone to cease VOIP operations.
Use of child labor and hazardous working conditions
A Danish TV documentary has revealed miserable working conditions and environmental violations at companies in Bangladesh that act as suppliers to GrameenPhone. Employees were shown working with hazardous chemicals and heavy metals virtually without protection. Workers were as young as 13 years, a clear violation of child labour laws. The firms were caught allowing polluted waste water to spill into nearby rice fields. And in one case, a worker was killed when he fell into an unsecured pool of acid.
Telenor, believing that the best defense is a good offense, opted to reveal some of the findings of the documentary even before it was aired.
Muhammad Yunus is considering taking legal action against Telenor
Nobel Peace Prize recipient and co-owner of Grameenphone, Muhammad Yunus, is currently considering taking legal action against Telenor, for the company's failure to stamp out the use of child labour by its subcontractors in Bangladesh.In a press release published on September 4th, 2008, Yunus wrote that:
-Neither I nor Grameenphone can accept this conduct. Twice the authorities in Bangladesh have found the company not to be in compliance with the current legislation of the country.
Telenor's CEO, Jon Fredrik Baksaas, has promised to look into the matter.

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