Telenor Norge passes latest margin squeeze test

11 Jul 2017

Following an updated examination of the prices charged by Telenor Norge for its wholesale prices, the National Communications Authority (Nasjonal kommunikasjonsmyndighet, Nkom) has confirmed that the operator will not be required to reduce its charges further.

As previously reported by CommsUpdate, in May 2017 the Nkom directed Telenor Norge to cut its wholesale prices for alternative operators that rent access to its mobile infrastructure. Publishing a draft decision regarding the conditions of competition in the country’s wireless sector, the regulator at that date said that, having conducted an analysis to ascertain whether alternative providers were facing a margin squeeze, it had determined that at current pricing levels that was indeed the case. As such, it requested that Telenor reduce its charges.

In a surprise development, however, the regulator has confirmed that in the wake of that decision Telenor Norge supplied it with additional information regarding its income and expenses, while it also reduced its prices on 15 June 2017 in the wake of new EU regulations related to roaming costs. With these factors considered, and a new margin squeeze test having been carried out, the Nkom has confirmed that Telenor Norge is not in breach of regulations, while saying there is no reason to implement further price cuts.