Telenor increased capital investment during the second quarter of 2026 as it accelerated AI infrastructure deployment, IT transformation and mobile network modernization across its Nordic and Asian operations.
Capital expenditure (excluding leases) rose 3.7 percent year-on-year to NOK 2.63 billion, while the group’s capex-to-sales ratio increased to 14.5 percent from 13.3 percent a year earlier. During the first half of 2026, capex excluding leases reached NOK 4.91 billion, with a 13.5 percent capex-to-sales ratio, compared with NOK 5.0 billion and 13.3 percent in the same period last year.
A major driver of higher investment was NOK 150 million allocated to GPUs for Telenor’s AI Factory, supporting the company’s AI infrastructure strategy. Additional spending focused on IT transformation and mobile network modernization throughout the Nordic markets.
Telenor CEO Benedicte Schilbred Fasmer said: “Telenor is supporting dual IT cost structures and high implementation costs related to the IT transformation, which are expected to start rolling off towards year-end and through 2027.”
Within the Nordics, capex excluding leases totaled NOK 1.87 billion, representing a 13.2 percent capex-to-sales ratio. Overall Nordic capex reached NOK 1.87 billion during the quarter, down 8.6 percent from NOK 2.05 billion a year earlier, while first-half Nordic capex stood at NOK 3.69 billion, down 2.9 percent from NOK 3.80 billion.
In Bangladesh, Grameenphone significantly increased investment as it began the rollout of its 700 MHz low-band network, with management indicating that the rollout will increase capex across both the second and third quarters. Grameenphone’s capex-to-sales ratio rose to 13.8 percent, an increase of 6.0 percentage points year-on-year, driven mainly by network upgrades and IT transformation.
Telenor’s quarterly free cash flow statement shows capex payments of NOK 2.30 billion, with the majority of investment directed toward the Nordic operations. Approximately NOK 1.7 billion of capex was invested in the Nordics, while Grameenphone accounted for around NOK 0.4 billion. Spectrum lease payments totaled approximately NOK 70 million in Denmark and NOK 136 million in Grameenphone during the quarter.
The company also continues long-term investments in digital transformation through multiple strategic programmes, including IT simplification and modernization, customer experience transformation, B2B modularity, and customer service transformation. These programmes are expected to reduce Nordic operating expenses by 0 to 2 percent annually between 2026 and 2028, while organizational simplification is projected to generate NOK 300 million in annual savings from 2027 and the downsized Asia office another NOK 75 million annually from the second quarter of 2026.
Telenor also outlined additional long-term infrastructure investment opportunities through its cloud modernization strategy. The company estimates approximately NOK 0.4 billion in potential benefits from its private cloud programme and NOK 0.3 billion to NOK 0.5 billion in potential savings from public cloud optimization by 2030, reflecting continued investment in cloud infrastructure, platform modernization, digitization and network robustness.
Looking ahead, Telenor expects the Nordics capex-to-sales ratio to remain around 14 percent during 2026, before declining to below 13 percent by 2028 and further to 11–12 percent by 2030 as transformation projects mature and operational efficiencies improve.
BABURAJAN KIZHAKEDATH
