The 2000īs
BackThe 2000s
2000
On 1 July 2000, Helsinki Telephone Corporation merged with and into HPY Holding Corporation, and the company adopted the name Elisa Communications Corporation. Along with the new corporate name, the last judicial remnants of the financial association were now history.
Compared to their actual business, the market capitalizations of IT companies reached an amazing peak and then started to plummet during 2000. A clear downhill began in the second quarter.
2001
In 2001 Elisa streamlined its corporate structure. The network and service operator business were separated from each other to form individual companies. The Group acquired the entire share capital of its associated company, SOON Communications Plc, and at the same time, KSP Group Plc (present Yomi Plc) and Finnet International Ltd became Elisa's subsidiaries. Elisa's mobile retail chains were transferred to form part of Radiolinja. In Germany, city carriers belonging to Elisa Kommunikation GmbH were integrated into the associated company Tropolys GmbH.
Comptel received two significant recognitions during 2001: on 6 February 2001, Comptel received President's Internationalization award, and in March 2001, Comptel's mediator software was elected the IT product of the year.
The director of Elisa's competence center presented a scenario, according to which ubiquitous computing can be reality in the near future. This means that as mobile phones become smarter they will turn into true multiuse devices, into which people can program their own requirement profiles. The same thing can also be interpreted that a computer turns into a cell phone.
2002
On 1 January, Tropolys GmbH became Elisa's subsidiary through Germany-based Elisa Kommunikation GmbH
On 3 January, Radiolinja opened its 3G wireless network, UMTS.
On 14 February, Radiolinja and Vodafone signed a cooperation agreement.
On 10 May, Mäkitorppa's retailing of mobile phones ended in Germany.
2003
On 3 April, Elisa Corporation's Board of Directors appointed Veli-Matti Mattila, MSc (
Changing the name Elisa Communications Corporation to Elisa Corporation was entered in the Trade Register on
Elisa's ownership of Riihimäen Puhelin Oy rose to 100 % on
In October, the Board of Directors signed merger plans, according to which all Elisa Corporation's entirely owned subsidiaries (such as Oy Radiolinja Ab, ElisaCom Ltd, Riihimäen Puhelin Oy with their subsidiaries, plus Elisa Networks Ltd and Soon Net Ltd) will merge with Elisa Corporation by
2004
Elisa acquired 48,03 % of the share capital of its subsidiary Finnet International Ltd in June. After the June acquisition, the indirect minority of 0,78 % in Finnet International was removed from the group as Yomi Plc merged with Elisa in December 2004. Finnet International has been a telecommunications operator offering international telecom services.
Elisa acquired the final 48,54 % of the share capital of itse subsidiary Yomi Plc by suvmitting a public tender offer to Yomi Plc's shareholders on 12 May. Yomi has offered fixed network -based telecommunications services in Central Finland, as well as services related to the software business.
2005
Elisa acquired Tikka Communications, a telecommunication operator offering fixed network based data communications services in North and South Karelia.
Elisa acquired also Saunalahti Group Plc that was consolidated as of 1 December 2005. Saunalahti is an Internet and telecom operator that offers services to consumers and corporate customers in Finland. Saunalahti's business operations are divided into four product lines: Internet services, gsm services, telecom services, and domain and hosting services.
The combination of Elisa and Saunalahti created a larger and more competitive Finnish operator in all customer segments. Elisa is the Finnish market leader in broadband subscriptions; there are some 1.2 million broadband subscriptions in Finland.
2006
Integration of One Elisa continued in 2006. Tikka Communications Oy and Jyväsviestintä Oy merged with Elisa. Saunalahti Group became a wholly owned subsidiary of Elisa and public quotation of Saunalahti shares terminated.
Elisa made further outsourcing agreements, including partial outsourcing of its field activities in the area of customer installations and maintenance to Relacom Finland Oy and outsourcing of external accounting processes related to its financial administration to Pretax BSP Oy.
Elisa offered to buy all the shares in Lounet Oy. The tender offer began on 21 June and ended on 31 December 2006, when Elisa’s ownership in Lounet was 80.2 percent. Elisa started the purchases of 4,000,000 Elisa shares. The purpose of the acquisition was to develop the company’s capital structure.
Elisa increased both its fixed network and mobile network services: Elisa was the first Finnish operator to open a music store, Elisa Jukebox. In cooperation with Canal Digital, Elisa offered a selection of TV content and videos on demand through its Viihdekaista service and launched the highly popular 3G service bundles.
2007
2007 marked the best year in Elisa’s history in terms of profitability and earnings. Revenue increased by more than 3 percent, which outperforms the average of European operators. Profit before tax increased by 35 % on the previous year.
Elisa’s market position strengthened further, particularly with regard to 3G services and broadband. The expansion of mobile internet was boosted by extending 3G network coverage and introducing consumer friendly pricing and devices that enabled a better Internet experience. The 3G market was a good booster for the development of the entire industry. The number of customers in
An important investment in 2007 was the construction of the 3G network that enables faster mobile broadband. By the end of 2007, Elisa’s 3G network covered 75 percent of
Elisa’s integration continued in 2007. Lounet Oy, Firt Orange Contact Oy and Elisa Ventures Oy merged with Elisa. Saunalahti’s employees were transferred to Elisa in a transfer of business at the beginning of October.
2008
Even though the global economy witnessed much turbulence in 2008, the telecom operator business did not suffer significantly. Elisa’s market position strengthened further in 2008, particularly with regard to 3G services and mobile broadband.
Elisa’s market position strengthened further in 2008, particularly with regard to 3G services and mobile broadband. During the report year, the 3G market was a good booster for the development of the entire industry. The number of 3G customers in Finland stood at some 1.7 million at the end of 2008. Elisa has an approximate market share of 50 per cent of 3G users. By the end of 2008, Elisa’s 3G network covered 250 localities and more than 80 percent of Finland’s population. According to studies, it was the best network in terms of coverage, range and quality.
Substantial changes took place in Elisa’s shareholding during the operating year. Through a transaction with Novator, Varma Mutual Pension Insurance Company acquired a holding of slightly less than 15 percent of Elisa’s share capital and voting rights. In accordance with a mutual agreement between the Finnish Government and Varma, the Government purchased a portion of the shares involved. The aggregate ownership of DNA Oy, Lännen Puhelin Oy, Oulun Puhelin Holding Oyj, Kuopion Puhelin Sijoitus Oy and PHP Liiketoiminta Oyj exceeded 5 per cent of Elisa’s shares and votes.
During the year Elisa streghntened its position with acquisitions. Elisa acquired 51 % of Kuntokompassi Oy (now Excenta Oy), and 100 % of Electur Oy. Electur’s core business consists of identity management, one-off registration and entry management.
Elisa also acquired the business operations of Dialmedia Oy and Doneto Oy. Both companies businesses comprise contact centre services. In November, Elisa acquired 100 percent of Telenor Oy from Telenor Sverige Ab. The new name for the company is Elisa Links Oy. Elisa Links Oy's business comprises customers, services and a network in Finland.
2009
The weakening of the general economic conditions in 2009 affected the telecom operator business to some extent. The impact was
felt mainly in equipment sales, roaming revenues and in corporate customer business. Although the global economy already showed signs of improvement, the short-term trend remained uncertain.
The competitive situation in Finland was stable. The number of mobile subscriptions and the use of data services saw favourable development. Data services enabled by faster 3G network increased proportionally. Other factors contributing to the growth
included the use of multiple terminal devices for different purposes and mobile broadband services. Churn in mobile subscriptions was at a normal level, and competition mainly reflected on services and campaigning.
Elisa’s profit distribution in 2009 included dividend payment and capital repayment. Elisa paid a dividend of EUR 0.60 per share. Shareholders also received a capital repayment of EUR 0.40 per share in November.
No material changes took place in Elisa’s shareholder base during the year. In June, the Finnish Government transferred all Elisa Corporation shares in its possession to the fully state-owned company Solidium Oy. In December BlackRock Inc announced that its proportion of Elisa shares was 6.6 percent.
The auction for the LTE 2.6 GHz spectrum ended on 23 November 2009. LTE is the evolution for the third generation (3G) mobile network. Elisa won the targeted spectrums. The license is valid until 2029.