Telenor announces purchase of Norwegian fibre duo

11 Jul 2011

Norwegian telecoms group Telenor has reached an agreement to acquire two local fibre companies, LOS Bynett and Bynett Privat, both of which provide high speed fibre-optic services. LOS Bynett targets the corporate market while Bynett Privat supplies private households, and the deal is seen as a means to strengthening Telenor’s position in the fibre sector in the Vestfold and Agder counties. With the value of the deal confirmed at around NOK300 million (USD55.3 million) it is understood that staff at both companies will be kept on, and Telenor noted in its announcement of the purchase that the duo generated a combined turnover of NOK89 million in 2010. Corporate customers, which number around 900, are thought to account for 50% of that total revenue figure, while the private customer base of around 9,600 accounted for the remainder. Further, LOS Bynett and Bynett Private will initially continue to offer the same range of services as they do now, although Telenor Norway CEO Ragnar Karhus has indicated that in the future the units could be integrated with the telco’s existing businesses. The acquisition, however, remains contingent on approval from the Norwegian Competition Authority. Commenting on the deal, Mr Karhus noted: ‘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.’

Norway, Telenor Group