C28. Related party transactions

The Swedish State

At year-end, the Swedish State held 37.3 percent of the outstanding shares in Telia Company AB. The remaining 62.7 percent of the outstanding shares are widely held.

The Telia Company group’s services and products are offered to the Swedish state, their agencies, and state-owned companies in competition with other operators and on conventional commercial terms. Certain state-owned companies run businesses that compete with Telia Company. Likewise, Telia Company buys services from state-owned companies at market prices and on otherwise conventional commercial terms. Neither the Swedish State and their agencies, nor state-owned companies represent a significant share of Telia Company’s net sales or earnings.

The Swedish telecommunications market is governed mainly by the Electronic Communications Act and ordinances, regulations and decisions in accordance with the Act. Notified operators are required to pay a fee to finance measures to prevent serious threats and disruptions to electronic communications during peacetime. The required fee from Telia Company was SEK 43 million in 2016 and SEK 45 million in 2015. In addition, Telia Company, like other operators, pays annual fees to the Swedish National Post and Telecom Agency (PTS) to fund the Agency’s activities under the Electronic Communications Act and the Radio and Telecommunications Terminal Equipment Act. Telia Company paid fees of SEK 47 million in 2016 and SEK 52 million in 2015.

Associated companies and joint ventures

Telia Company sells and buys services and products to and from associated companies. These transactions are based on commercial terms.

Summarized information on transactions and balances with associated companies was as follows.

SEK in millions

January–December
or December 31,

2016

2015

Sales of goods and services

   

PAO MegaFon

76

96

Other

15

16

Total sales of goods and services

91

112

Total purchases of goods and services

96

83

Total trade and other receivables

17

7

Total trade and other payables

24

10

     

Pension and personnel funds

As of December 31, 2016, Telia Company’s Finnish pension fund held 366,802 shares and its Finnish personnel fund 673,749 shares in Telia Company AB, respectively, in total representing 0.03 percent of the outstanding shares. For information on transactions and balances, see Note C21 “Provisions for pensions and employment contracts.”

Key management

See section “Remuneration to corporate officers” in Note C31 “Human resources” for further details.