Telenor, the Norwegian telecom giant, has decided to acquire GlobalConnect’s consumer network in Norway for NOK 6 billion. This move aims to strengthen Telenor’s foothold in the country’s fiber market. With this acquisition, Telenor gains ownership of crucial fiber infrastructure and about 140,000 new customers. The company promises them enhanced digital security, premium home networks, and entertainment services backed by robust connectivity and customer service.
This transaction highlights the fragmented nature of Norway’s fiber market. By undertaking this purchase, Telenor intends to achieve greater operational and financial robustness by increasing its market share of fiber subscriptions from 22% to 29%, based on 2024 data.
Financially, the acquisition seems promising. GlobalConnect’s consumer segment generated over NOK 0.6 billion in revenues in 2024. Telenor estimates an EBITDA of around NOK 0.3 billion for the first two years post-integration. Free cash flow is set to climb to a NOK 0.45 billion run rate by 2028. Further, expected cost savings from backbone integration and scaling are projected at NOK 0.15 billion annually, with a one-time integration cost of around NOK 0.3 billion within the first two years.
For Telenor, this acquisition offers a strategic advantage. By merging GlobalConnect’s consumer fiber network, Telenor can amplify its service reach, offering enhanced services to a larger base. As Benedicte Schilbred Fasmer, President & CEO of Telenor, remarked, this marks a significant forward-looking step. The company welcomes new customers and employees, aiming to offer unparalleled connectivity services to more households.
On the other hand, GlobalConnect is transitioning its focus in Norway towards becoming a pure wholesale provider for enterprise and carrier businesses. CEO Martin Lippert expressed confidence that Telenor would efficiently manage its consumer base and employees.
As the acquisition awaits clearance from the Norwegian Competition Authority, Telenor remains committed to boosting investments in digital safety measures and Wi-Fi technologies. In addition, the company continues to make strides in the defense sector, recently enhancing its capabilities to address cyber threats through its subsidiary, KNL.
