Telenor Norway Splits Up the Corporation

Telenor Infra AS

writer icon Tormod Birch     Telenor Infra   |   Business     🕐 17. Jan. 2020


After more than a year of internal work, Telenor's management team are now finalising the discussed changes. The group separates property, mobile network, radio network and the broadband network into separate company structures.

The newly created Telenor company, Telenor Infra A/S, is wholly owned by the Telenor Group, but will be run as an independent firm. This is why Telenor Infra and Telenor Norway are positioned as two parallel units in the group structure.

Individual Mobile Network
Wanting to gain a great efficiency boost, conversation began between Telenor's CFO Jørgen Arentz Rostrup and CEO Sigve Brekke in January 2019, outlining the next steps for the company.

By then, measures had already been taken to simplify processes and remove inefficiencies internally, but too few new improvements had been effective.

The Telenor director said that since the fall of 2018, they have had a project group working to look at the possibilities of separating mobile masts and infrastructure both in Norway and other countries where Telenor operates.

The purpose of the corporate changes has undoubtedly been implemented to achieve and increase the value of the firm. And Telenor is not the first corporation to be doing so, Telia has already separated its Norwegian mobile network into a separate company.

New Business Opportunity
Perhaps inspired by Amazon's AWS services Telenord wanted to open us for the possibilities to sell their services to other companies.

"We are looking at whether we should share the infrastructure more so that other players can use it as well, and whether we can operate it better," Brekke said last year.

In addition to separating the mobile masts, Telenor has also said that they are considering selling all the huge real estate stock they have on Norwegian ground. The third promise is the so-called copper remediation project - where the 100-year-old copper technology for landline is to be shut down and removed, in favour of modern fibre networks and mobile solutions.

Telenor announced last year that they have about 90 000 mobile masts in the countries they operate. 50 000 of these are owned by Telenor, and about two out of three are in Asia. The last 40 000 are owned by others or in partnership with Telenor.



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