Norwegian telecoms operator Ventelo has announced a corporate restructuring which will see it break its operations into two separate units, Ventelo and Broadnet. According to a statement issued by the company, it will boost investment in fibre-based communications by focusing on core operations via the Broadnet arm, which it is aiming to position as the country’s leading supplier of fibre-based data services to businesses and alternative operators. Mobile and fixed telephony services, meanwhile, will continue to be offered under the Ventelo brand.
The development comes on the back of the acquisition of Ventelo by Swedish private equity firm EQT VI, which agreed to acquire it from six regional power companies – BKK, Troms Kraft, Agder Energi, NTE, Eidsiva Bredband and Altibox – for an equity value of up to NOK1.8 billion (USD304.9 million) in December 2011. The transaction was completed in February 2012.
EQT also owns InFiber, which itself reportedly controls one of the largest fibre-optic networks in Norway, and in line with the restructuring it is understood that the latter will work closely with Broadnet. The company meanwhile has said it plans to invest significantly in the rapid expansion of Broadnet’s own nationwide fibre infrastructure, with the unit tasked with offering a standardised and simplified product portfolio.
Ventelo meanwhile will continue to primarily target business customers with its mobile and fixed voice product offerings. The unit currently serves around 80,000 subscribers across Norway.
The comprehensive restructuring, it is claimed, will create focused and effective companies with the financial strength to further investment, although the corporate reshuffle is expected to see a number of redundancies. Further, new management teams have reportedly been appointed to both of the newly reorganised business units.