Swedish telecom group Telia and Norway’s Lyse, the owner of mobile operator Ice, have agreed to combine their Norwegian mobile radio access networks into a jointly owned company, marking a significant shift in the country’s telecom industry. The move is aimed at strengthening competition in a market dominated by Telenor, followed by Telia Norway and Ice.
Under the agreement, Telia Norway and Ice will pool their mobile radio access infrastructure while continuing to own and operate separate core networks. This structure allows both companies to remain independent competitors in the Norwegian market, even as they collaborate on network deployment and efficiency.
Telia CEO Patrik Hofbauer said the partnership would enable both operators to build a nationwide mobile network that would be too costly to achieve independently. According to Telia, the network combination is expected to generate material cost savings and deliver clear financial benefits, while providing greater capacity to invest in a strong, future-ready digital network. The combined network is expected to become operational in the second quarter.
The agreement comes as Telia Norway continues to modernise its infrastructure and services. During the quarter, the company completed the shutdown of its 2G network, a milestone in its transition toward more advanced mobile technologies. Telia also won a collective tender to deliver secure and resilient connectivity services to 19 municipalities and 14 public enterprises in eastern Norway, reinforcing its position in the public sector segment.
In parallel, Telia Norway has been involved in a landmark digital transport project. In collaboration with public transport operator Sporveien and Siemens Mobility, the rollout of a new digital signalling system for the Oslo Metro has begun. The system is the first in Europe to rely on a commercial mobile network and enables more accurate train positioning compared with traditional signalling technologies.
Despite these strategic initiatives, Telia Norway faced headwinds in its subscriber base and financial performance during the period. Mobile postpaid subscriptions, excluding M2M services, declined by around 10,000, with losses spread evenly across consumer and enterprise segments. Broadband subscriptions fell by about 2,000, while TV subscriptions decreased by roughly 1,000.
Revenue declined 0.6 percent on a like-for-like basis, mainly due to lower service revenue. Service revenue fell 0.8 percent, as a 2.8 percent decline in mobile revenue, driven by lower wholesale revenue, more than offset growth of 4.2 percent in fixed service revenue. Growth in fixed services was supported by higher revenues from broadband and TV following price adjustments.
Profitability was also under pressure. The adjusted EBITDA margin decreased to 39.5 percent from 43.3 percent a year earlier, while adjusted EBITDA fell 9.3 percent like for like. The decline reflected lower service revenue and a higher cost base, partly due to increased marketing spend aimed at capturing growth opportunities. Capital expenditure excluding spectrum and leases declined to SEK 534 million from SEK 656 million.
The network-sharing agreement with Ice is expected to play a key role in improving Telia Norway’s cost efficiency and investment capacity over the medium term. By sharing infrastructure while maintaining competitive independence, Telia and Ice aim to accelerate nationwide coverage, strengthen digital services, and better challenge the market leader in Norway’s evolving telecom sector.
BABURAJAN KIZHAKEDATH
