Telia in Denmark and Telenor create Denmark’s best network
Telia, TeliaSonera’s subsidiary in Denmark, has entered into a network sharing agreement withTelenor in Denmark to create Denmark’s best mobile network. The companies will also establish acommon infrastructure company to operate the joint network. The agreement will have a significantimpact on both the customer experience and financial results.
The agreement involves the 2G, 3G and 4G networks, and ambitions for the agreement are high.
“The decision to merge our network investments and network competencies is a milestone. Together, we will create Denmark’s best mobile network and thereby provide the best customer experience for users of smartphones, tablets and mobile broadband”, says Håkan Dahlström, President business area Mobility services, TeliaSonera.
High ambitions in Denmark
With this agreement, the two companies give each other access to existing towers in areas where they would otherwise have had to build their own. In addition, future new mobile towers will be built jointly by Telenor and Telia in Denmark. This will reduce both companies’ spending on mobile infrastructure while at the same time allowing them to expand the joint network more quickly than they would have been able to do on their own.
“TeliaSonera have high ambitions in Denmark. To achieve these ambitions, we need to do two things successfully, we need to provide a world-class customer experience, and we need to secure the scale of our network to ensure that it is profitable to do business in Denmark in the long term. By sharing networks, we are taking a strategically important step on both fronts, making us better prepared to face the competition”, concludes Håkan Dahlström.
Customers will begin to feel the effects of the network partnership right away. As part of the agreement, Telenor and Telia are already in the process of giving each other access to existing 2G and 3G positions within the framework of the mobile tower legislation – as well as planning new joint 2G and 3G positions.
Partners in infrastructure, competitors in products
The partnership only covers the radio access network, i.e. the antennas, towers and transmission equipment that establish connections to mobile units. The partnership does not involve the two companies’ core networks where their services are produced – the core networks will continue to be operated separately. Telia and Telenor will continue as two independent providers and will in future also compete aggressively for customers through different products, services and prices. Telenor and Telia have reported the establishment of the new joint network company to the Danish Competition and Consumer Authority.
TeliaSonera AB discloses the information provided herein pursuant to the Swedish Securities Markets Act and/or the Swedish Financial Instrument Trading Act. The information was submitted for publication at 8 a.m. CET on June 14, 2011.