The partnership will give the operators greater coverage by sharing existing towers and the chance to collaborate on cellular tower projects in the future. Telenor and Telia said this agreement aims to reduce spending on mobile infrastructure while creating opportunities to expand the joint network more quickly, compared to operating in the space as separate entities.
“We need to secure the scale of our network to ensure that it is profitable to do business in Denmark in the long term,” said Jon Erik Haug, CEO at Telenor and Søren Abildgaard, CEO at Telia, in a joint statement. “By sharing networks, we are taking a giant and strategically important step, making us even better prepared to face the competition.”
Both companies are in the process of sharing access to existing 2G and 3G positions within the framework of the cellular tower legislation in addition to planning new positions for 2G and 3G.
The agreement only covers radio access network which includes the antennas, towers and transmission equipment that makes connections possible to mobile units. It excludes the companies’ core networks which will continue to be operated separately.
Telenor and Telia confirmed the companies will still operate as independent providers competing for customers through new products, services and prices.
"Operators are looking at what to do with CAPEX for upgrades at all levels and whether or not do it alone," explained André Malm, senior analyst at Berg Insight. "I think [this agreement] is part of a much broader plan for mobile networks considering what is happening in terms of the increase in data traffic."
