Telenor Group and Vodafone Group today announced a strategic partnership between their respective global procurement organizations, Telenor Procurement Company (TPC) and Vodafone Procurement Company (VPC). The collaboration aims to leverage the combined scale and global expertise of both telecom giants across major procurement categories, enhancing value for customers, suppliers, and shareholders.
Together, Telenor and Vodafone serve over 550 million customers across 23 countries, with their procurement arms managing a combined annual spend exceeding €26 billion (NOK 300 billion). By joining forces, the partnership seeks to unlock significant savings through combined purchasing power, complementary geographies, and shared expertise.
The partnership is designed to strengthen supply chain resilience amid shifting geopolitical dynamics while deepening engagement with suppliers and partners. Both Telenor and Vodafone are committed to responsible and sustainable business practices, ensuring that their economic impact is supported by leadership in environmental, social, and governance (ESG) standards.
Thomas Skjelbred, CEO of Telenor Procurement Company, said: “This partnership will strengthen Telenor’s competitiveness, ultimately increasing value for our internal operations, associated companies, external customers, and shareholders.”
Ninian Wilson, CEO of Vodafone Procure & Connect, said: “By combining our scale, complementary footprints, and competencies, we will drive sustainable efficiencies and greater innovation for our customers.”
Telenor Group: Strategic Investments and Financial Discipline
In 2024, Telenor Group demonstrated a strategic approach to capital investment, focusing on network modernization and selective acquisitions. The company reported a capital expenditure (Capex) of NOK 12.95 billion, representing 16.2% of its sales. Notably, Telenor’s Nordic operations accounted for NOK 9.68 billion of this expenditure, primarily directed towards enhancing mobile network infrastructure.
A significant move in Telenor’s investment strategy was the acquisition of GlobalConnect’s Norwegian consumer division for approximately NOK 6 billion. This acquisition, pending regulatory approval, aims to bolster Telenor’s fiber network and expand its customer base. The company anticipates annual cost savings of NOK 150 million post-integration and plans to invest NOK 300 million in integration efforts between 2026 and 2028, The Wall Street Journal reports.
Looking ahead, Telenor projects a free cash flow of around NOK 13 billion for 2025, excluding mergers and acquisitions. This projection reflects the company’s commitment to maintaining financial stability while pursuing growth opportunities.
Vodafone Group: Restructuring and Strategic Investments
Vodafone Group’s capital investment activities in 2024 were characterized by strategic divestitures and significant investments aimed at restructuring its operations. The company reported a decrease in outflows from investing activities to €6.12 billion, primarily due to lower proceeds from the sale of subsidiaries and reduced investments in property, plant, and equipment.
A notable development in Vodafone’s investment strategy was the merger with Three UK, forming VodafoneThree. As part of this £16.5 billion deal, Vodafone committed to investing over £1 billion within the first year and an additional £11 billion over the next decade to enhance network coverage and digital infrastructure.
Furthermore, Vodafone’s divestiture of its Italian operations to Swisscom for €8 billion marked a significant step in simplifying its European footprint. The proceeds from this sale are expected to be utilized for shareholder returns and debt reduction, Financial Times reports.
Conclusion
Both Telenor and Vodafone are strategically aligning their capital investments to enhance network capabilities, streamline operations, and position themselves for future growth. Telenor’s focus on network modernization and selective acquisitions contrasts with Vodafone’s restructuring efforts and significant investments in key markets. These strategies reflect each company’s approach to navigating the evolving telecommunications landscape.
Baburajan Kizhakedath
