Norwegian incumbent Telenor has agreed to pay NOK300m (US$55m) for two local fibre companies, LOS Bynett and Bynett Privat, from local power company Agder Energi.
LOS Bynett builds fibre-optic high-speed networks for the corporate market and the public…
Norwegian incumbent Telenor has agreed to pay NOK300m (US$55m) for two local fibre companies, LOS Bynett and Bynett Privat, from local power company Agder Energi.
LOS Bynett builds fibre-optic high-speed networks for the corporate market and the public sector, while Bynett Privat supplies private households.
“Telenor has stated that they want to invest in fibre development”, said Unni Farestveit, group director of markets in Agder Energi.
Telenor Norway CEO Ragnar Karhus said: “Telenor’s aim is to further develop these enterprises as part of Telenor’s fixed broadband activities in Norway. We have great faith in the region comprising the Agder counties and Vestfold, and Telenor has already established a regional office in Kristiansand and a security centre in Arendal. The strong local business community, population growth and strong purchasing power make this an attractive region”.
Telenor Norway and its cable unit Canal Digital Kabel TV, which currently offer broadband via copper and cable, will gain a stronger position in fibre, thanks to the acquisitions.
The companies, which boast 9,600 private customers and some 900 corporate customers, had a combined revenue NOK89m (US$16.4m) in 2010, with the corporate customer base accounting for almost 50% of the total.
Los Bynett and Bynett Privat will remain separate businesses for the time being, but in the longer term may become integrated with Telenor’s other businesses and services, Mr Karhus said.
The transaction is pending approval by the Norwegian Competition Authority.
