TeliaSonera today said it has received approval from the Norwegian Competition Authority to acquire Tele2’s Norwegian operations.
As part of the remedies provided in order to have the transaction approved, the customer base of Network Norway is sold to ICE, the company said in a statement.
TeliaSonera and Tele2 have therefore agreed to adjust the enterprise value from SEK 5.1 billion to SEK 4.5 billion on a cash and debt free basis.
Meanwhile TeliaSonera also wanted to provide 98 percent population coverage for 4G in Norway already next year – two years ahead of what the Norwegian Communications Authority requires.
The company hopes 4G service will be available in TeliaSonera’s network to 4.5 million Norwegians by summer, which represents 90 percent of the population. It also aims at achieving 98 percent population coverage for high-speed mobile Internet substantially ahead of what the responsible Norwegian authority Nkom requires.
“I am pleased that the Norwegian Competition Authority sees the advantages with this transaction. This is good, not only for our and Tele2’s customers, but also for Norway as a whole. We will be a stronger and more credible alternative to Telenor on their home market. We will now further accelerate the roll-out of mobile Internet, says Johan Dennelind, President and CEO of TeliaSonera.
With TeliaSonera getting the nod from the Norwegian Competition Authority, the market will witness healthy competition and so it is now possible for a third player to establish itself on the Norwegian market, company officials said.
As part of the agreement, TeliaSonera has signed an agreement with mobile operator ICE partly on national roaming, partly on the sale of the customer base and the marketing and sales organization of Network Norway, which provides voice communications solutions to companies.
Network Norway is part of Tele2 and has about 90,000 business subscriptions. As a result of the sale of Network Norway, in particular, the enterprise value of Tele2’s Norwegian operations is reduced from SEK 5.1 billion to SEK 4.5 billion.