Norway - Q1 2013
As a result of the implementation of BMI's new Risk/Reward Ratings methodology, Norway moved up five positions in the Q113 update. Norway's overall score improved from 63.1 to 65.1 on the back of an upgrade to its industry rewards score. An additional factor was a relative improvement in its country risks score due to the positive real private consumption growth outlook and its more limited exposure to the eurozone compared to many of its peers. Norway now scores above the regional average in all four categories surveyed. Norway sits behind Switzerland and above Sweden and Germany.
Norway's industry rewards score improved significantly under the new methodology. Norway has always scored highly in the category as a result of the high ARPUs in the market, derived from the high income levels in the country. However, it has been limited somewhat by the small size of the market relative to large European countries. The improvement in Norway's score is derived from BMI's greater emphasis on both wireline and wireless data subscription growth - an area of the market in which Norway is a regional leader with strong competition in high-end wireline broadband provision, as well as competition in commercial 4G LTE services. It should be remembered that improved capacity services also open up new opportunities in value-added service provision such as OTT, mobile TV and VOD.
Norway had previously held the highest score in Western Europe in the country rewards category until BMI's Q411 Risk/Reward Ratings. This had been positively influenced by several factors including the country's GDP per capita and the proportion of the country's GDP that is spent on education. Along with Denmark and Sweden, Norway spends one of the highest proportions of GDP on education, a phenomenon that ensures a highly literate population that is generally receptive to new technologies. However, the Q411 change to our methodology placed greater emphasis on demographics and other population data, reducing Norway's score. From a telecoms perspective, a fast population growth rate is seen as positive because it ensures a growing market for new communications services. Without it, and in the face of existing saturation, we had to mark down Norway's country rewards scores quite considerably in Q411. There were no new data for analysis at the time of writing; therefore, no further changes have been implemented this quarter.